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Media Release

 

BSE collaboration with ZEE for Investor Education

The Capital Markets in India have seen a period of unparalleled growth in the last two decades of the twentieth century. The Indian Capital Markets, at the dawn of the new millenium, face a number of challenges, which would prove critical for its future development and growth. Investor Education and Training is one of the most critical areas, which demands greater attention and response from all the major participants in the capital market.

BSE has been in the forefront of providing Investor education and training to the vast Investor populace in India as also enhancing the safety and security features in the capital market mechanism so as to ensure the highest level of Investor protection.

  • BSE has recently enhanced the compensation payable to an investor from the Investor Protection Fund of BSE from Rs.5 Lakhs to Rs.10 Lakhs. This is the largest amount being paid out by any Exchange in India. SEBI has prescribed a limit of Rs.1.5 Lakhs for the same.
     
  • BSE has also set aside a sum of Rs.1 crore for the purpose of providing financial assistance to recognized Investor Associations for their expenditure towards various development expenditures for Investor protection.
     
  • BSE has plans to set up additional Investor Assistance centers in major cities. The objective behind the setting up of these centers is to provide a local forum for the redressal of investor grievances and to make available all necessary data, information and other facilities to the investor at a convenient location in their respective areas.
     

BSE has been instrumental in bridging the information asymmetry gap in the Indian Capital Markets and in raising the level of awareness among Indian investors through it’s various initiatives aimed at the common investor.

  • BSE has trained over 15,000 investors in the intricacies of the capital market mechanism through the various courses conducted at the BSE Training Institute.
     
  • BSE has been bringing out a number of publications, all of which aim at providing the common investor with all possible information that he would require for trading in securities.
     
  • BSE has arranged a large no of seminars and lectures all over the country, both on it’s own and in association with many investor associations.
     
  • BSE has also been holding seminars and meetings on various aspects of the capital markets with many professional bodies/associations like the ICAI, ICSI, BMA and others.
     
  • BSE has also initiated a number of research projects in collaboration with the leading institutes in the country like the IIMs. The Research study on the "Return in Indian Equities" carried out by "Society for Capital Markets Research and Development" headed by Dr.L.C.Gupta is the most recent example of the same.
     
  • The BSE website.i.e.bseindia.com has become the key focal point of information dissemination on the capital markets and is today one of the most popular sites among the Indian Investors.
     

BSE has been exploring the use of the Audio-visual media and the Internet in its efforts towards increasing the reach of Investor education and training. This is in light of the phenomenal growth and success of the Internet and the Television Channels in India, which has not left untouched even the most remote corners of the country.

BSE’s collaboration with ZEE Interactive Learning Systems is a very important step in this direction. BSE and ZEE would work together to provide knowledge, information and awareness through structured training on various aspects of the capital markets to the common investor. The collaboration would be initiated with a pilot series of 26 episodes which will be aired 3 times a week .The timing of the telecast would be based on the target segment and would be decided by mutual consultations between BSE and ZEE. The television series would be tentatively called "BSE Investor Awareness Program". BSE would retain the naming rights to the program.

The Proposed Program series would tentatively cover the following among other related areas:

  • Basics of Investment and Capital markets
     
  • Various Investment options available
     
  • Regulatory framework for investments including taxation
     
  • Trading, Clearing and Settlement processes at Stock Exchanges
     
  • Dematerialization, Depositories and Custodial Services
     
  • Modified Carry Forward System (Badla)
     
  • Basket Trading
     
  • Introduction to Derivatives – Index Futures and options
     
  • Tax Planning
     
  • Introduction to Security Analysis and Portfolio Management
     
  • Indian Debt Market and Instruments
     
  • Buy-Back and Stock Options
     

This is the first such collaboration of its kind in India which has been initiated by any Exchange for the purpose of Investor education and training. BSE is also looking at the use of the Internet as a formidable medium of imparting education and training to the various participants in the capital markets without the impediments of time, space, effort and reach.

 

 

 

Dr. Manoj Vaish
Dy. Executive Director

19th December 2000

 

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