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Setting the Policy FrameworkSetting the Policy FrameworkSetting the Policy Framework Setting the Policy Framework for Investor Educationfor Investor Education

AnantaAnanta BaruaBaruaExecutive DirectorExecutive Director

SEBISEBI

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Rationale for Development of Investor Rationale for Development of Investor Education InitiativesEducation Initiatives

• Direct participation of large number of retail

i t i IPO/ it l k tinvestors in IPO/capital market.

• Merit to disclosure regime.

• Complex Investment products and investment

vehicle.

• Inadequate social security and retirement benefit.Inadequate social security and retirement benefit.

• India is a nation of savers .There was need to

convert savers into investors, off course, as a

informed investors.

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Complex & troubled financial landscapeComplex & troubled financial landscape

• Opaqueness of financial products & lack of

k l d th t f thknowledge on the part of the consumers.

• Globalization-Financial Conglomerates are Global

but regulation is local.

• Technological advancement

• Financial education cannot be left to market alone.Financial education cannot be left to market alone.

• Investor due diligence

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SAP FOR INVESTOR EDUCATION & SAP FOR INVESTOR EDUCATION & AWARENESSAWARENESS

• SAP Seeks to provide a framework for a more effective

approach to investor educationapproach to investor education.

• Investor Education is a Critical component of Investor

Protection mandate. Educated investor is protected investor.

• SEBI sets up a separate division for Investor Education.

• SEBI constituted IPEF July 2007.

• Focus on existing and Potential Investors.

• A different approach than mere provision of information.

• Investor out- reach programme.

• Training the trainer

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Investor Education GoalInvestor Education Goal

• To build capacity of investors through education and

awareness to undertake transaction in Securities Market-

Invest with knowledge

• Endeavors to ensure that the investor learns investing, i.e.

he obtains and uses information required for investing,

evaluates various investment options to suit his specific

goals.goals.

• Ascertains his rights and obligation in a particular

investment

• Knows where and how to seek help and guidance in case of

need / grievance. 5

Content DevelopmentContent Development• Dedicated Investor Website –

http://investor.sebi.gov.in/test/index.html

• Awareness Material on website and brochures

Unbiased primer on various products & financial planning.

Do’s and Don'ts and Rights and Responsibilities

Frequently asked Questions

Investor grievances redressal mechanism

• Financial Education Study material for six target groups(Available in 13 regional languages apart from English)

• Pocket money program for school children

• Mass Media Campaign

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Delivery ChannelsDelivery Channels

• Investor education programmes through :

27 Investor Associations (IAs) 118(2010 11) 24(2011 12) 27 Investor Associations (IAs) -118(2010-11),24(2011-12).

Industry/Trade bodies- AMFI, Exchanges, Depositories .

Resource Person’s – 297 RP

Through National Institute of Securities Markets (NISM)

• By SEBI staff 144• By SEBI staff– 144

• Visit to SEBI – 31

• Regional Seminars – 35

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Programs conducted by Trade Programs conducted by Trade bodies, Exchanges / bodies, Exchanges / Depositories Depositories

P d t d b AMFI E h Programs conducted by AMFI , Exchanges

Depositories – till date conducted around

8110

144 Joint Programs since April 2011

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Financial Education through RPsFinancial Education through RPs

Year No: of Programs conductedconducted

2010 100

2011 1773

2012 237

Total 2110

297 RPs trained by NISM/SEBI.

Impact assessment planned through NISM.

Total 2110

RPs Workshops RPs Workshops -- Target Groups Target Groups wisewise

SHG No. of …74

Executives

Home Maker

Middle Income Group

Retired People

98

78

118

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0 200 400 600 800 1000

School Students

College Students / Young Investors

795

933

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Through NGOsThrough NGOs

Pilot program through MelJol 2009-2010

238 teachers trained

14550 students from 197 schools covered.

Rural and tribal areas of Maharashtra - Akola and

Thane districts

Pocket Money ProgramPocket Money Program

School Teachers trained by NISM / SEBI School Teachers trained by NISM / SEBI

Program under supervision of NISM

5783 students from 256 schools across the

country have taken the program so far

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Few photos of the

workshops /

programmes conducted

b SEBIby SEBI

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Workshop for School childrenWorkshop for School children

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Workshop for School childrenWorkshop for School children

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Workshop for Young InvestorsWorkshop for Young Investors

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Workshop for Home MakersWorkshop for Home Makers

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Workshop for Middle Income Workshop for Middle Income GroupGroup

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10

Workshop for ExecutivesWorkshop for Executives

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Workshop for Self Help GroupWorkshop for Self Help Group

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11

Workshop for Police OfficersWorkshop for Police Officers

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Workshop for Air Force Workshop for Air Force officersofficers

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Workshop for Retirement Workshop for Retirement planningplanning

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Regional SeminarRegional SeminarLaunch of Brochure on Mutual fund Launch of Brochure on Mutual fund & &

Grievance Grievance Redressal MechanismRedressal Mechanism

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Way ahead…Way ahead…

Mass Media Campaignp g

Coordinated Approach with various regulators-

FSDC,RBI,SEBI,IRDA,PFRDA.

Proposed National Strategy for Financial Proposed National Strategy for Financial

Education.

Thank You

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