The Securities and Exchange Board of India (SEBI) recently launched a mobile application called Saa₹thi, whose sole intent is investor education. ‘R’ in the name stands for ‘₹’, the symbol for Indian Rupee. This gesture by SEBI aims at spreading awareness among investors regarding the fundamental concepts of the securities market. The highlights include an easy explanation of the KYC process, trading and settlements, Mutual Funds (MF), latest market developments, and mechanisms for addressing investor grievances.
The Genesis of Saa₹thi
Amidst the recent surge in individual investors entering the market, it was noticed that most of the trading was being conducted through mobile phones. As per data from the National Stock Exchange (NSE), the proportion of individual investors rose to 45% in 2021, up from 39% in 2020. Given that NSE is India’s largest financial market, the growth is quite significant.
Understanding Securities Market
Securities are essentially financial instruments floated for raising funds. The primary role of securities markets is to facilitate the transfer of capital from those who possess it to those who require it. In doing so, these markets create channels for diverting savings into investments, thereby distinguishing these two activities. Consequently, savers and investors aren’t limited by their individual capabilities but are subjected to the economy’s capacity to save and invest. This setup inevitably boosts savings and investments in the economy. Some common examples of securities include Equity, Debt securities, etc.
Diving Into the Role of SEBI
The Securities and Exchange Board of India (SEBI) entered existence on 12th April 1992 as a statutory body under the provisions of the Securities and Exchange Board of India Act, 1992. The main function of SEBI is safeguarding the interests of investors dealing in securities and promoting as well as regulating the securities market.
The SEBI board comprises a Chairman and numerous other full-time and part-time members. Depending on the requirement, SEBI also constitutes various committees to address pressing issues at any given time.
With the launch of the Saa₹thi app, it is anticipated that first-time individual investors will benefit immensely from the easy-to-understand information on securities and market dynamics. The app will serve as a tool for better decision-making, ensuring safer and profitable investments. Furthermore, it will also strengthen the bridge between the trading platform and individual investors, fostering more participation in India’s securities market.
