Sebi goes for bigger presence at IITF

This year’s India International Trade Fair 2015, Delhi, (IITF) has something new besides handicraft, food, gadgets and machines. Vying with the other stalls is one from the market regulator, Securities and Exchange Board of India (Sebi), whose pavilion is named ‘Bharat Kaa Share Bazaar’. Next to Sebi’s pavilion is one by the Reserve Bank of India (RBI). The main purpose is to engage public to increase financial literacy and investor awareness.

This is not the first time that Sebi has set up a pavilion at IITF. Last year, too, it had participated but this time around it also has other market-related entities such as stock and commodity exchanges National Stock exchange (NSE), BSE Ltd, National Commodity & Derivatives Exchange Ltd (NCDEX) and Multi Commodity Exchange (MCX); depositories National Securities Depository Ltd (NSDL) and Central Depository Services Ltd (CDSL); industry body Association of Mutual Funds of India (Amfi); and National Institute of Securities Market (NISM).

To attract visitors, NISM is holding small quizzes to develop interest among young people in the financial market. Winners get surprise gifts. Sebi is giving participation certificates to those who are able to answer a few sets of questions.

“We also want to make people aware of Sebi’s role and the role it can play in helping an investor; how we can act suo motu if we come to know that any company or organisation is violating any rule or cheating an investor,” said Vijayant K. Verma, deputy general manager, Sebi, who was present at the event.

Besides showcasing the Indian securities market and its various products, it also cautioned the public against illegal money mobilisation schemes. This is being done through activities such as talk shows, skits, display of investor-friendly policies and facilities. It also displayed pointers to identify a collective investment scheme and check if it is registered with the market regulator or not before putting in money. Sebi has conducted about 30,000 such workshops in recent years.

As an outreach exercise, other participants such as mutual funds and depositories are providing know-your-customer (KYC) or demat registration services. From the market regulator’s side, there is also a live facility to lodge investor complaint through SCORES (Sebi Complaints Redress System) against listed companies and securities market intermediaries.

“This should be done on a consistent basis for years for it to bear fruit. I think the intention is to do it consistently taking help from industry participants, which is the correct way to go about this,” said Suresh Sadagopan, a Mumbai-based financial planner.

However, not everyone thinks such initiatives are an effective means of communication. “Workshops and seminars do educate people about their rights, but these are conducted more as an image building exercise, and to utilise the funds allocated for the purpose,” said Jehangir Gai, a Mumbai-based consumer activist, adding that there are better ways to help individual investors.

Some of the common grievances include, “non-receipt of dividends, problem in physical transfer of shares, and bogus collective investment schemes,” he said.