To analyze, debate and discuss the new and emerging trends of the Indian financial markets, the Confederation of Indian Industries- Eastern Region organized a day long Financial Market Conclave in Kolkata on August 3, in which CapitalVia Global Research Limited was a proud participant.
The event saw participation of not just organizations dealing in Capital Markets, but also the market regulator – Securities and Exchange Board of India (SEBI), Ministry of Economic Affairs, and one of the oldest stock exchanges of India – Bombay Stock Exchange (BSE).
Other value adding participants of the conclave were independent rating agency Brickwork Ratings, State Bank of India, Tata Asset Management, HDFC Securities etc. In the opening remarks, CS Ghosh, Chairman of CII Eastern Region spoke about the importance of the conclave and its tone.
‘Decline of trust’
One of the key sessions of the day were the address by Amarjeet Singh Executive Director of SEBI, who spoke about the decline in trust of the investors in the stock market. His take was that the current occurrences in the Capital Markets and private companies was leading to a decline in trust of investors in the companies in which the promoters’ stakes were high. He also said that investors were finding investments in such companies risky and hence were shifting from private to public institutions.
‘Trust in Economy is rising’
An opposite view to that of SEBI Executive Director Amarjeet Singh was adopted by Anand Mohan Bajaj, Joint Secretary (FM), Department of Economic Affairs, who said that the country’s economy has improved and that the trust of investors in the economy had gone up. He also highlighted the various schemes by the government which had played a role in this.
‘FPIs and FIIs are becoming risk averse’
Ashish Kumar Chauhan, MD and CEO of Bombay Stock Exchange commented that the foreign institutional investors were increasingly becoming risk averse and were preferring the index funds over investing in any individual stock of a company. Earlier the investors were investing more into companies. However, with the high volatility of individual stocks, the investors are preferring index funds based on sensex, nifty etc. He said that the indices had not shown any sudden fall since 2014 thus making the funds invested there safer.
A Debt market exchange must be established
To provide liquidity in the debt securities markets, Danesh Mistry - Head, Portfolio Management Services, Tata Asset Management said that a debt exchange similar to a stock exchange should be established in the country.
Ashis Biswas, head of research at CapitalVia Global Research Limited questioned Mistry on the success of such a model keeping in mind the lack of liquidity in the segment, to which Mistry responded that not having a market place was a reason for illiquidity in the debt market and not the other way round.
Angel investments alternative to equity markets
In the day’s first session, Kishor Shah, chairman of CII core committee spoke about the different ways of capital growth present in the market today and the emerging trends. He said that private equity funds which were invested as angel investments to startups were the future and emerging trend in capital markets.
Issuing IPOs need to be made simpler
In a panel discussion which was held post lunch, the views of participants on the theme of ‘Raising funds from Capital Markets IPOs’ were heard. In which, one of the major point which was discussed and agreed upon by participants was that the IPO launching process should be made easier for new companies which face difficulty in understanding its nitty-gritty.
It was also discussed that the information available for raising funds through IPOs through different points of contacts was not in sync. Rajat Baid, Deputy Vice President at Pantomath, also said that there was a need for a professional educational institution for the officials and resource persons who deal in IPOs and other investment related job profiles.
Market Outlook and Study
Another session of panelists agreed on a point that despite the turbulence in the economy, the fundamental condition of the country was not taking a hit. The panelists agreed that the Economic slowdown was cyclic and that the bulls will take charge of the markets soon. The panelists advised the investors to stay invested in the markets.
CapitalVia Global Research Limited was represented by Ashis Biswas, the head of new age products at the organization. The event provided CapitalVia a platform to interact with prospecting investor for its expansion into new segments of products, in line with the emerging trends of the financial markets. CapitalVia Global Research Limited presented among the delegates the future of trading and investments in Capital Markets and how the Capital Markets can be accessed by the retail investors, highlighting the theme of investing responsibly.