Chennai: SEBI on Thursday advised stock exchanges
to communicate with investors through local languages to help
spread an equity culture among people and the stock market
"Help in growing the equity culture in the area in
people`s language. Most of our communication tends to be
English. We need to get all of this communication done in the
local languages without which we are losing huge audience",
SEBI chairman C B Bhave said at a function here.
He said the stock exchanges` should focus on investors`
education and the spread of financial literacy in their
Notably, only two per cent of Indians invest in stock
markets. Analysts attribute the increased volatility in the
Indian stock market to the insiginificant participation of
"We need to educate our investors and we need to tell
them really what the risks are in the business. We should also
educate them what risks they are protected against and what
risks they take themselves," Bhave said.
"It is very important they get this communication across
so that we get an informed investor into the market," he said,
inaugurating a strategic partnership between Madras Stock
Exchange (MSE) and National Stock Exchange (NSE) to facilitate
members of the former to trade on both cash and derivatives
segments on the NSE platform.
Bhave also said SEBI would be happy to extend any help to
the stock exchanges in their efforts to educate investors.
In order to end delay in refunds from companies when
the investors were not allotted shares, Bhave said SEBI was
considering automation of the system where the investor`s
money would not be taken away from his account till he knew
how many shares he was going to be allotted.
"We are trying to promote a mechanism whereby the
investors money is not taken away from his account till he is
told as to how many shares are going to be allotted to him.
"Only to the extent that shares are being allotted, the
money will be taken from his account, so that the question of
refund does not arise at all", Bhave said.
"We require lot of automation by the banks to implement
this process," he said.