SEBI launches Saarthi mobile app for investor education
- SEBI launched “Saa₹thi” – a mobile app on investor education in Mumbai.
- The new app aims to create awareness among investors about the basic concepts of the securities market.
About the application
- The application provides explanations about mutual funds, its working, trading and settlement, KYC (Know Your Customer) processes, developments in the market, etc. Also, the application includes a grievance redressal mechanism.
- The application uses both Hindi and English.
- It is available for both iOS and android users.
- In future, the app will be made available in local languages as well.
Why was the application launched?
- Recently, the number of individual investors entering the market is increasing.
- The app was launched to help these individual investors. Also, the new investors are using smartphones to do trading. Thus, they are being assisted through mobile apps.
Securities market in India
- Securities are financial instruments issued to raise funds via issue of bonds, debentures, mutual funds etc.
- Security market is a component of the wider financial market where securities can be bought and sold on the basis of demand and supply
- The primary function of the securities market is:
- To enable the flow of capital from those that have it to those that need it.
- To help in transfer of resources from those with idle resources to others who have a productive need for them.
- To provide channels for enhancing savings and investment in the economy.
Increase in Individual investors in India
- In India, the individual investors have been increasing.
- Their share was 39% in 2020. In 2021, it increased to 45% according to NSE (National Stock Exchange) data.
Reason for increase in Individual investors
- The interest rates in the banks are reducing.
- The Fixed Deposit rates are varying between 2.9% and 5.4%.Thus, the returns from such investments is very low.
- There is an increase in global liquidity. Also, people are spending more time at home because of the pandemic.
- The market capitalization at BSE (Bombay stock Exchange) increased by 1.8 times.
- It increased by 1.6 times in Russia. The other countries with significant increases are China, France and South Africa.
- It is evident that market capitalization is higher in India as compared to other countries.
- This mobile app is yet another initiative of SEBI with a view to empowering investors with knowledge about the securities market.
- With the recent surge in individual investors entering the market, and more importantly a large proportion of trading being mobile phone based, this app will be helpful in easily accessing the relevant information.
- There is a possibility that the App will be popular among the investors especially the young ones.