The Stock Markets are now predominantly controlled by Urban Investor. Further, these investors are a group of few players who conduct predominant part of the trade.
We wonder whether it is good. One can not dispute the fact that any market, if it is controlled by minority, will not be healthy. Further, liquidity is oxygen for stock markets upon which they thrive. Liquidity implies participation by majority, in other words large number of players.
If you look at our markets from this perspective, what appears so glaring is absence of Rural Investor.
Investors from rural areas are still ignorant about the on goings of Capital Markets. Their investments are mostly going into traditional areas. Internet, Online technology, technological advancement etc., are failing to bring rural investors to the market. We need to appreciate the Indian Corporate Ministry’s efforts in this direction. They were constantly conducting investor’s awareness programs in rural areas to educate and to encourage rural investor.
We honestly feel that such initiatives shall be supplemented by certain other measures, such as investigating into the questions like
- What is investment culture that is prevailing in rural areas
- Why this rural investor is unaware of this market
- Is he unaware or is he not interested etc
The Ministry of Corporate Affairs, the way it was collaborating with the professional bodies for conducting investor awareness programs, it shall also, on the same lines, encourage professional bodies, business schools, researchers, NGOs, Voluntary Organisations etc to explore proper answers to these questions and to suggest suitable remedies in these areas.
The Securities Exchange Board of India (SEBI) which is apex body in regulating stock markets shall facilitate rural investor with some preferential reservation in every Public Offer.
Online stock brokers shall be encouraged by giving some tax incentives for rendering services to rural investor in the rural areas.
We shall do everything to bring our rural investors to main stream of stock markets. Shouldn’t we?
