Speed Post News Network
New Delhi : Union Commerce & Industry, Consumer Affairs, Food & Public Distribution, and Textiles Minister Piyush Goyal on January 5, 2022, evening, called for transparency and the highest level of integrity in the stock markets. Addressing the National Stock Exchange (NSE) function to mark the Silver Jubilee Celebration of 25 Years of Nifty Index and 20 Years of Launching of Derivatives Markets in India, he said this will empower households to look at greater incomes through investment besides encouraging foreign investors.
“I think perception matters in the financial world, and therefore it is imperative we must put in place a strong system to maintain the highest level of integrity and transparency, which will encourage every Indian to invest in the stock market and empower households to look at greater incomes through investment besides encouraging foreign investors,,” said Goyal. He said the NSE has been able to eliminate a lot of bad practices and brought in more transparency in the working of the exchange.
“On a lighter note, many people are missing the charm and the excitement of trading in the ring as it used to happen earlier, but I think given the current market dynamics and the size of the markets, I’m sure the ring could not handle this level of trade volumes,” he said.
Goyal said India has earned respect globally with its robust technical solutions for handling large trade volumes. “It is equally pertinent that all financial products pass through the prism of ‘Trust, Transparency & Accountability’ so that they can turn into a rainbow of colours for the investors,” he said. He said Stock Exchanges play a pivotal role in providing capital both to industry and service sector and you channelise household savings and institutional flows for capital formation.
Goyal said India is on the path of unprecedented economic growth. The rising economic indicators have showcased India and its true potential and capacity. “We have had the highest ever exports in the history of India. During December 2021, goods exports stood at $37 bn, up by about 37% over last year. Exports have exceeded $ 30 bn for 9 months in a row setting a record every month since April 2021,” he said, adding, “Moody’s recently upgraded India’s rating, we recorded the highest ever FDI, we see a robust GST collection, Vibrant Startup ecosystem, Record Mfg & Services PMI – just to name a few indicators!”
Lauding NSE for being recognised as the largest derivatives exchange globally for 2019 & 2020, Goyal hoped it will contribute strongly to India’s growth story.
“ NSE’s Nifty 50 index, in a way, has become the ‘Stock of the Nation.’ The Index has grown by 15 times in the last 25 yrs symbolising the growth potential of the Indian economy. It has made the common man a part of India’s growth story. I’m sure the Nifty 50 will continue to play a very important role in making GIFT City an international financial hub. NSE symbolises New India’s commitment for strong economic growth.”
Goyal gave a Seven Sutra mantra for the growth of stock exchange market:
i. Safeguarding interests of Small Retail Investors & the MSMEs by improving their financial literacy, launching financial products suitable to their risk appetite and meeting their investment needs
ii. Strong need for participants to be well informed about products that they are investing into; amplify campaigns which would keep the eyes of investors open.
iii. Encourage sentiment shift from Speculation to Diversification, from Momentary gains to building long-term portfolios
iv. Bringing Ease & Simplicity to products which includes launching products in Regional languages
v. Collaborating with schools and colleges to imbibe investment and trading skills at a young age
vi. Reduce volatility and the sudden spikes to enlarge investor base and induce robust capital formation, and
vii. It’s important that we follow the International Best Practices (Wall Street, NASDAQ, etc.) and aim to be among the top 3 exchanges in the world.
Goyal said let us all make a New Year Resolution to help in making Stock Exchanges a frontier to achieve target of $5 tn economy. “India cannot become a developed country without world class securities and commodities market,” he said quoting PM Modi.