Journalism of Courage
The capital market in India has grown significantly,but there are areas of weaknesses that are being addressed,the head of Securities and Exchange Board of India (SEBI) said on Monday.
We have grown quite a bit in the capital market and its penetration,but there are areas of weakness, Sebi Chairman U K Sinha said in his address to the day-long conference on the US-India Economic and Financial Partnership organised jointly by the Confederation of Indian Industry (CII) and Brookings Institution.
These areas of weakness become very stark if we discover that there are segments of the geography where a lot of activities are talking place both by way of surplus money which can be invested and also by way of need for raising money, he said.
The approach of the regulator is to provide more and more products. The approach is to provide simplification and convenience to the investors going forward. The approach is also to encourage corporates to raise money domestically, Sinha said. Observing that a very,very large portion of the capital market is concentrated in the eight to ten large cities of India,Sinha said there will be a need to deepen the access of the capital market to small markets and rural areas.
I believe mutual funds can play a very important role in that, he said.
