NSE partners SEBI, J & K Bank and Kashmir University conducts Investor Awareness Program

The exchange has signed an MOU with University of Kashmir as well during the program.

Nov 02, 2015 09:11 IST India Infoline News Service

India’s leading stock exchange, the National Stock Exchange of India Limited (NSE), in association with the market regulator Securities and Exchange Board of India (SEBI), J&K Bank and University of Kashmir, organized a Regional Investor Awareness Programme today on "Economic Empowerment through Financial Education", at Srinagar. The exchange has signed an MOU with University of Kashmir as well during the program.

The welcome address was delivered by Dr. S. A Mufeed, Director, The Business School and Ms. Rana Usman, AVP, NSE. The keynote addresses were delivered by the Guest of Honour – N Hariharan, Chief General Manager, Head Office, SEBI, Prof. Khurshid Iqbal Indrabi, Hon’ble  Vice Chancellor, Kashmir University and Abdul Rauf Bhat, Execuitive President , J&K Bank. The technical session was delivered by Suryakant Sharma, DGM, SEBI, NRO and Renu Bhandari, CM, NSE.

The MOU with the University of Kashnmir will enable students to learn financial market skill from the next academic year. All courses will be initially at the Post Graduate level.

During the program, the keynote address was delivered by the Guest of Honour, N Hariharan, Chief General Manager, Head Office, SEBI. The seminar was attended by a large number of investors from the region.

NSE conducts nearly 1000 investor awareness seminars yearly, in different parts of the country. The purpose of these awareness programmes is to educate people in the city, about how they can manage their finances better and the investing opportunities that are available.

Today’s seminar is one more step by NSE to empower people from the tier two and tier three cities, to take good financial decisions for a comfortable future. It is important that investors should understand the markets, the precautions they should take in choosing an intermediary or in trading products, before investing. At the seminar today, investors were educated about the investor grievance redressal mechanisms, so that they can get their complaints resolved at an early stage. They were also educated on the various products that they could invest in, for example, exchange traded funds (ETF’s) including Nifty ETF’s.

Exchange traded funds are investment funds, traded on an exchange, just like stocks. ETFs are a low cost and small ticket products. For instance, an investor can invest in the top 50 stocks traded on NSE, by buying just one unit of Nifty ETF, for just around 600 rupees. The units are easy to buy and sell on an exchange platform. At the same time, risk is reduced, because you are investing in 50 stocks (of the Nifty index) and not in only one stock. The underlying could also be commodities, govt securities or a set of customized stocks.

Investors were also advised on the steps they should take to ensure that their interests are protected. They were given guidance on how to trade cautiously, so that they don’t get misled by market rumours and invest according to a wise investment plan. Investors were also educated on the precautions they should take before, during and after trading. These included a discussion on checking contract notes issued by brokers to investors, to verify whether only authorized trades have been executed by the broker. Investors were also given advice on not getting lured by promises of exceptionally high returns and on the need to check the statement of accounts, to ensure that all transactions are as per the client’s advice and consent. 

To ensure investor protection, they were advised on the mandatory and voluntary documents that should be executed between the investor and the member broker and on the need for investors to see the risk disclosure documents, if they are first time investors, so that they take wise investment decisions.  Investors were made aware that giving a power of attorney to the broker is voluntary and not mandatory.

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