SEBI to launch nation-wide campaign to educate investors

Mumbai, May 27 (UNI) Capital markets regulator, the Securities and Exchange Board of India (SEBI) plans to launch a nationwide campaign to educate investors on the capital markets and make the markets more disciplined and transparent.

SEBI chairman M Damodaran today said ''before making investments, investors should know how much risk is involved, what would be the return and benefits, and the legal procedure of their investment. '' He said this education campaign would be launched by the year-end.

Damodaran suggested that there should be more registered investors associations, who can take up the task of sensitising potential investors, as SEBI alone won't be able to provide proper education to the huge number of investors across the length and breath of the contry.

Mr Damodaran, in a statement, pointed out that till last year there were eight registered investors associations in the country, which has now increased to 28 and stressed that India's stock markets were more disciplined, organised and enabled speedy transactions compared to other developed countries.

With regard to recent reports that terror networks were playing in the markets, he clarified that there was ''no evidence with the SEBI that militant outfits or any criminal syndicates are investing money in the market''.

Mr Damodaran explained that banks are now more active about investment as they follow the Reserve Bank of India (RBI) guidelines regarding 'Know Your Customers' and other norms.

While asserting that SEBI was extra vigilant whenever a new company started its business or invested money in the market, he admitted that the body has certain limitations and has hence not been completely successful in protecting all investors.

UNI