SEBI: Targets the savings of housewives to invest in stock market
Posted on: 11/Feb/2017 6:06:28 PM
The Head of the SEBI (Securities and Exchange Board of India) Mr. U. K. Sinha has announced that a financial review committee will be set up soon to explore the possibilities of investing the saving made by the housewives and kept in their homes in the stock market.
It is a long-time tradition and well-known fact that the housewives are scrupulous in their spending and they make regular savings which they keep with them in their houses. They do not invest or deposit these savings in the bank on the view that it should be readily available in the case of any emergency cash requirement.
Several people, dreading the cumbersome procedures and restrictions in the savings banks, are scared to deposit the saved money in the banks.
SEBI has planned to device a simple and easy system with minimum formalities to invest these house savings in the stock market.
This investment will not only earn some additional revenues for the house but also help in the economic growth of the country.
U. K Sinha addressed the gathering on the 11th Digital India Conference held in Delhi. He explained that by diverting the house savings and investing in the stock market, both the individual house and the country as a whole stand to gain. Presently, the Indian Economy is in robust shape. There are some stringent procedures and regulations in the stock market.
In this scenario, it cannot be accepted that the part played by the household savings will be very minimal in the stock market. The people are ready to invest in the stock market. However, they tend to hesitate because of some stringent regulations such as KYC (Know Your Customer).
So, plans are afoot to form a committee which will review the situation and device simple and easy procedure for the investment in stock market. The Heads of the Financial institutions and Finance Experts will be included in this committee. Based on the recommendations by this committee after their review, action will be initiated leading to the investment of household savings in the stock market.
Currently, revising the regulations on the listing of the stock share receipts regularly released by the Property Reconditioning Institutions.The new procedure and the regulations will be released in the next financial year.
In India, there is a continuous increase in the trend of organizing crowd-funding for investments in different projects. The draft procedure and regulations of this plan were recently released by SEBI for a survey and feedback. However, Mr. U.K. Sinha revealed that the immediate feedback from the Start-up Institutions is that the regulations in the draft proposal are very stringent.
