Capital Market Must Expand Over 12% to Meet Viksit Bharat Goals
The 13th International Convention organized by the Association of National Exchanges Members of India (ANMI) concluded in New Delhi last Saturday. According to a press release, the event, themed “Bharat: A Global Hub of Opportunities,” assembled over 900 trading members from leading Indian stock exchanges, regulatory authorities, and industry leaders to ponder strategies to expand India’s capital market.
The conference featured insightful sessions focusing on Mega Trends in the Indian Capital Markets for the Next Decade, India’s Economic Ascent, and Technology Enablers in Capital Markets. Inspiring speeches and productive discussions by renowned experts in the finance sector helped provide valuable insights into the future of Indian capital markets.
A key highlight of the event was the attendance of Kamlesh Varshney, Whole Time Member of SEBI, who stressed the significance of reforms, innovation, and investor confidence in achieving the desired expansion of the capital market. He spotlighted SEBI’s initiatives, including the development of a cyber-security framework, and encouraged brokers to implement these measures to enhance investor confidence.
He emphasized that the Capital Market needs to grow by over 12 percent to align with the objectives of Viksit Bharat. Key factors for achieving this targeted growth include a strong emphasis on reforms, innovation, leveraging technology, and fostering investor trust.
Varshney emphasized SEBI’s proactive steps in bolstering cybersecurity through the development of a comprehensive framework, which has been disseminated to the industry. He urged brokers to adopt this framework to safeguard the security and integrity of the market.
Moreover, he suggested the adoption of the “Critical Path Method” to streamline procedures and identified investor trust as a crucial factor in driving the growth of Indian Capital Markets. As a noteworthy contribution to the convention, Varshney unveiled an insightful report titled ‘Roadmap for Inclusive Development of Indian Capital Markets,’ offering valuable insights into the future direction of the market.
Ashish Chauhan, MD and CEO of NSE delivered a powerful speech focusing on the role of stockbrokers as catalysts for growth and the importance of investing in NIFTY for wealth creation and the future growth of India.
Chauhan drew an intriguing comparison between the renowned Warren Buffett in the U.S. and India’s Nifty, highlighting the latter as a significant catalyst for wealth generation. He strongly advocated for investing in NIFTY for the nation’s future growth and the prosperity of investors.
Chauhan shared significant statistics, indicating that approximately 9 crore depositories with unique PAN numbers are presently enrolled with NSE, representing 20 percent of households in India.
He set an ambitious goal of achieving 100 percent coverage, emphasizing NSE’s dedication to expanding market participation. Identifying stockbrokers as crucial drivers for the envisioned growth, Chauhan highlighted their pivotal role. He asserted that reaching a market capitalization of USD 50 trillion in the next two decades hinges on the emergence and success of tech-driven startups, expected to be the primary wealth creators in India. He aimed to increase the number of registered depositaries with unique PAN numbers to 100 percent to broaden market participation.
At the convention, ANMI unveiled an insightful report on the Roadmap for Inclusive Development of Indian Capital Markets, outlining strategies to promote sustainability, inclusion, education, and transparency within the capital markets. The report underscored ANMI’s commitment to fostering inclusive growth and nurturing a vibrant capital market ecosystem in India.
Dr. Vijay Mehta, President of ANMI, praised the engaging discussions at the convention and highlighted India’s economic strength and global presence. He reiterated ANMI’s commitment to prioritizing sustainability, technology, inclusion, and transparency in the finance and investment domain.
Mehta said, “At our 13th International Convention, we celebrated India’s capital markets which is full of opportunities. With a strong economy, advanced technology, and rich culture, India is shining globally. Just last month, over 5.4 million new investors joined the market, and as of February 9th, we had nearly 161 million registered investors. Moreover, our pledge today reaffirms our stance that we are committed to prioritizing sustainability, technology, inclusion, and transparency in the realm of finance and investment.”
Hemant Kakkar, Convenor and Chairman of ANMI, echoed Dr. Mehta’s views, highlighting the convention’s emphasis on exploring avenues to enhance India’s global economic stature through capital market endeavors. He commended the inventive proposals showcased at the gathering and reiterated ANMI’s dedication to fostering progress and advancement while upholding principles of inclusivity and transparency.
Kakkar, “At the 13th International Convention, we successfully explored how India’s capital markets could boost our country’s global economic status. Discussions on upcoming trends, India’s economic growth, and the adoption of new technologies were insightful and the innovative solutions presented at the convention are bound to take India’s capital markets to new heights. The members’ pledge to embrace innovation, sustainability, inclusion, and transparency was a positive step and showed our dedication towards envisioning a brighter future for India’s economy.”
The convention came to an end with a feeling of hope and resolve as ANMI and its constituents reiterated their dedication to fostering the expansion and progress of Indian capital markets.