BSE CEO alerts investors, said- If you do not protect yourself, then only rules cannot save you – Cross Talk India
If you are an investor of the stock market, then you must consider the CEO of BSE (Bombay Stock Exchange). BSE Managing Director and CEO Sundarman Ramamurthy said on Thursday that if investors do not take enough precautions while investing, only rules cannot protect them. According to PTI news, seeing the need for the awareness and responsibility of the investors, Ramamurthy urged the investors to be alert and informed, saying that you trade what you understand, if you do not do this, then you have a problem.
Criticism of the tendency to trust rumors
According to the news, Ramamurthy criticized the tendency of investors to rely on rumors rather than proper hard work. He said that you examine it before buying vegetables, but when you invest your life’s earnings, you trust rumors, it should not happen. The BSE chief said that there is a common belief that when investors lose money, regulators are blamed, but when the markets perform well, the same person praises his knowledge.
What should a small investor do
Speaking at the Calcutta Chamber of Commerce, while talking on the issue of retail participation, Ramamurthy said that small investors who are not market experts should choose the path of mutual funds and yet, they should avoid the themetic funds and instead choose a wide-based mutual funds or a number cap fund to diversify the risk. Women and youth should take initiative to start investing at the beginning of their career.
What about SME sector
The BSE CEO reported that only about 40 companies in the SME sector are currently listed in the stock exchange, while the actual capacity may be more than 1,000. He urged more small and medium enterprises to raise funds and consider the listing as a viable route to raise their business and unlock their ability. Responding to a question on possible manipulation in the SME listing, Ramamurthy admitted that fraud such as pump-end-dump plans could not be completely rejected, even if regulators and stock exchanges are cautious.
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