Nilesh Shah, Group President and Managing Director, Kotak Mahindra AMC said that regulators have done a great job to strengthen the financial markets in India. This is visible with one of the best infrastructures they have created in the world.
However, the market watcher sees further scope for improvement from investors’ point of view. While sharing his views at Anmi’s 13 International Convention 2024, Shah added that there is a need to turn Indian savers into investors. “Majority of Indians remain poor because they are generating return lower than inflation,”
Shah said adding 18 crore people are putting their money in cryptocurrency. He further shared that around 10 crore individuals are losing money while playing fantasy games, nearly 2 crore Indians have lost more than Rs 2 lakh crore in Ponzi schemes. As much as 89% of traders in India lose money in the F&O segment. Shah also said that there is a need to educate investors as currency circulation is more than assets under management (AUM) in mutual funds and equities.
Market regulator Securities and Exchange Board of India in January last year said that 89 per cent of individual traders lost their money in the F&O segment in FY22. They witnessed an average loss of Rs 1.1 lakh during the year. In a detailed study on the P&L of individual traders in the F&O segment, the market further last year highlighted that the total number of unique individual traders who traded through the top 10 brokers in the equity F&O segment jumped over 500 per cent to 45.2 lakh during FY22 as against 7.1 lahks during FY19.
Among the other panellists, Sameer Patil, Chief Business Officer, BSE added that the total number of investors were around 5 crore during pre-covid times. The figure now has reached 14 crore at present. “Technology and the rise of new-age brokerage have played an important role in the past 3-4 years.”
Sriram Krishnan, Chief Business Development Officer, NSE added that retail participation has grown 37-40% of average daily turnover in the past 3-4 years. The numbers could go up to 80% just like China.
Subhash Chandra Aggarwal, Co-Founder, Chairman and Managing Director, SMC Global Securities added that artificial intelligence (AI) and machine learning together with in-house reach will play a crucial role in the financial world over the next decade.