SEBI whole-time member Ananth Narayan Gopalakrishnan on Wednesday assured investors of the benefits of demat. Also, he addressed the concerns of the investors related to dematerialisation. He was speaking on the second day of the IVCA Conclave 2023. His views on demat accounts and their benefits come at a time when the market is battling a bullish correction.
Talking about SEBI’s view on industry growth, Gopalakrishnan said,SEBI There are three fundamental mandates as part of the SEBI Act. We are charged with investor protection, market development and market regulation. Essentially, if you put all three together, our mandate is to ensure sustainable capital formation.”
Allaying investors’ concerns regarding dematerialisation, Gopalakrishnan said, “If everything is in demat form, the data that we ask for will become redundant. If your liabilities are in demat, if your assets are also demat eventually But if it is, I don’t’ I need not ask you anything. It is all available with the depository.”
It ticks all the boxes for sponsors, regulators and investors, as it provides ease of doing business, disclosure and clarity, and regulatory oversight to investors and aligns with the goal of Digital India, he said.
Further, giving his personal views on the QIB regime for the Accredited Investors regime and institutions when they can be used as criteria for entry into large value funds, Gopalakrishnan said, “I would rather have an accredited Will essentially go ahead for the investor.(AI) model than going through this 1 crore, 2 crore, 3 crore, 5 crore kind of numbers.
He also said, “The logic I’m using is in line with best practice internationally, which is why we want to start with people who declare themselves to be financially literate.”
Further, he said that the number of accredited investors is 200, but the actual number of retail investors in AIFs is in the 1000s.
On Wednesday, the market declined for the fourth consecutive day, witnessing the biggest decline in five months. Sensex has erased its psychological level of 60,000 mark and Nifty 50 has fallen below 17,600. It is being said that Sensex and Nifty 50 closed at their lowest level since October 19 last year.
Sensex It closed at 59,744.98, down 927.74 points or 1.53%. While the Nifty 50 closed at 17,554.30, down 272.40 points or 1.53%.
Investor wealth as Sensex falls below 60,000 mark There has been a withdrawal of 3,87,228.19 crores on Wednesday.
On BSE, there are approximately 12.55 crore registered investors as on February 22, 2023.
Gopalakrishnan is a Whole Time Member of the Securities and Exchange Board of India (SEBI). In SEBI, he looks after the Market Intermediaries Regulation and Supervision Department (MIRSD), Alternative Investment Funds and Foreign Portfolio Investors Department (AFD), Integrated Surveillance Department (ISD), Department of Economic and Policy Analysis (DEPA) and Department of Information Technology. (ITD). He is also currently a member of the Board of Governors of the National Institute of Securities Market (NISM).
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