HIGHLIGHTS:
- The Saarthi mobile application was launched by the Securities and Exchange Board of India (SEBI).
- Banks are lowering their interest rates resulted in increased individual investors in India.
- The BSE (Bombay Stock Exchange) market capitalization climbed by 1.8 times.
What is in the News?
The Saarthi mobile application was launched by the Securities and Exchange Board of India (SEBI). The application delivers data about the financial markets. It is extremely beneficial to investors.
Concerning the application
The software explains mutual funds, their operation, trading and settlement, KYC (Know Your Customer) procedures, market changes, and so on. The application also contains a mechanism for resolving complaints. Both Hindi and English are used in the programme. It is compatible with both iOS and Android devices. The software will be available in local languages in the future.
What was the purpose of launching the app?
Individual investors have recently increased their participation in the market. The software was created to assist these small-time investors. In addition, new investors are trading on their smart phones. As a result, mobile apps are assisting them.
Markets for Security
The security markets are those where securities are purchased and traded. Securities are nothing more than assurances. When the individual who owns the securities fails to repay the money, the securities are forfeited. Securities are tradable financial instruments that are used to raise funds in both public and private markets.
The number of individual investors is growing
Individual investors have been increasing in India. In 2020, they had 39 percent share. According to NSE (National Stock Exchange) figures, it has climbed to 45 percent in 2021.
Why is the number of individual investors in India increasing?
- Banks are lowering their interest rates. The rates for Fixed Deposits range from 2.9 percent to 5.4 percent. As a result, the returns on such investments are quite poor. The amount of money in circulation around the world has increased. Also, as a result of the pandemic, people are spending more time at home.
- The BSE (Bombay Stock Exchange) market capitalization climbed by 1.8 times. In Russia, it climbed by 1.6 times. China, France, and South Africa are the other countries that have seen substantial growth. In comparison to other countries, India’s market capitalization is clearly bigger.
