Mumbai, 9 September As if unsatiated with the rise of India’s capital markets to tenth position globally, Securities and Exchange Board of India (SEBI) today favoured introducing more products for deepening of markets aimed at investors’ protection.
“We can achieve further growth by ensuring more investors and more products in the market,” SEBI Chairman M Damodaran told PTI in an interview, when asked whether India could advance further in the global ranking.
“India has developed into a big market. We are the tenth largest in the world and further growth is sure to come... the current growth we have achieved is without much of PSU disinvestment,” he said.
Exuding confidence that the market is in for a major expansion, he said deepening of the market was a definitive safeguard for investors. “With the growth in the market there can be more investors to participate.
“The growth itself is a measure of investors’ protection,” he said, adding that the regulators’ three objectives -- investor protection, market development and regulation -- could not be seen in isolation and should be read in tandem.
Emphasising that market needed more products for further growth, Damodaran said: “New products such as interest and currency derivatives are required... there are some new products in the pipeline.”
On the derivative market itself, Damodaran said in the F&O market although futures market was growing, the option segment had not grown.
“As we go forward, we will look at launching new products to bolster growth in the Futures and Option segment,” he said.
Damodaran, who dislikes to be drawn into day-to-day market movement, said the economy was growing and the Indian story would surely be reflected on the markets and his role as regulator was clearly to guard against any malpractices.
“People keep asking me as to where the market is heading for.... and I tell them this is an answer nobody has,” he said, emphasising that SEBI was mandated and would do every thing to protect investors from wrongdoings.
In a large market one or two investors could not have any dominating influence. The depth and maturity of the market alone would help achieve the objective of protecting investors, he said.
Praising the retail investors, he said that they are more educated and take informed decisions.