Investor Vigilance: BSE Chief Stresses Education Over Regulations

BSE CEO Sundararaman Ramamurthy emphasizes that regulations alone cannot shield investors who neglect due diligence. He advises small investors to choose mutual funds and emphasizes the potential of India's SME sector. Ramamurthy also highlights the importance of early investing for women and youth.

BSE Managing Director and CEO Sundararaman Ramamurthy has underscored the importance of investor awareness and responsibility. He cautioned that regulations alone are not sufficient to protect investors who fail to take adequate precautions while investing.

At a gathering at the Calcutta Chamber of Commerce, Ramamurthy advised investors to thoroughly understand their trades. He criticized reliance on hearsay over due diligence in investing decisions, warning that "you scan a vegetable before you buy it, but when you invest your life's earnings, you go by hearsay."

For small investors lacking market expertise, he recommended mutual funds, especially broad-based or large-cap ones, while urging women and youth to start investing early. Highlighting India's SME sector potential, Ramamurthy noted just 40 SME companies are listed on the BSE, though potential listings exceed 1,000. He also addressed concerns around SME listing manipulation, emphasizing vigilance and the trial use of AI to scan IPOs.

(With inputs from agencies.)