The IIM Bangalore (IIMB)’s Centre for Capital Markets and Risk Management (CCMRM) at and NSE’s Investor Protection Fund Trust (NSE IPFT) launched the Platform for Investor Education (PIE), on Monday. Nagendraa Parakh, Executive Director, SEBI, Vikram Limaye, Managing Director and CEO, NSE, and Prof Rishikesha T Krishnan, Director, IIM Bangalore, launched the platform.
Observing that today’s financial environment is complex, volatile and perilous, Prof Jayadev M, Chairperson, IIMB-CCMRM, in his opening remarks, said “The increasing number of corporate failures, risk of employment losses, and limited government pension systems, emphasises the need to design an investment portfolio that safeguards one against financial vulnerability. The remedy is to enhance financial literacy and financial education.”
Financial education encompasses understanding financial concepts, possessing the ability and confidence to manage personal finance by taking short-term decisions and long-term planning, considering individual life-cycle events as well as changes in economic environment. The PIE is a step towards empowering people in this direction.
Timely initiative
Describing the launch of the platform as a timely initiative, given the need for investors to make informed decisions in a time of uncertainty and expected market volatility, IIMB Director Rishikesha T Krishnan thanked NSE for giving IIMB the opportunity to work on such an initiative and said: “The Platform for Investor Education will benefit from the innovative research initiatives by the faculty at IIM Bangalore, and will therefore reflect the current developments in financial markets. It will certainly work as an enabler for investors.”
Addressing the virtual gathering of students, faculty and alumni of IIMB, professionals and academics at the live streamed launch, Limaye said: “An increasing number of retail investors, particularly from tier-2 and tier-3 cities, have been actively contributing to India’s growth story, reflecting the booming interest in capital markets among people all socio-economic strata. One of the major reasons behind this change can be attributed to improving investor education via enhanced availability of information on digital media and growing awareness among people about newer financial asset classes apart from conventional fixed deposits and other such avenues.”
Technology driven innovation
Talking about the challenges created by Covid-19, even in the capital markets, Limaye said the NSE’s efforts at protection and education of investors in volatile times would be enhanced by the PIE. “The audio content is available in multiple languages, making it accessible to investors across the country,” he observed, adding that technology has enabled more people participating in the markets, creating a spurt in the number of investors during the pandemic.
After launching PIE the Platform for Investor Education, virtually, Nagendraa Parakh, Executive Director, SEBI, said: “India is a growing economy and high GDP growth is possible only when we attract investors to capital markets. An educated investor is a protected investor. Greed is a big factor in markets, so SEBI works very hard to educate investors and protect their interests through regulatory efforts. The Platform for Investor Education, driven by technology and the experts at IIMB, is sure to enhance SEBI’s efforts.”
Why PIE?
Here are four reasons why the IIMB-NSE Platform for Investor Education is unique:
It is easy to understand and simple to use. Content is available on demand, allowing investors to access at their convenience.
Experts and experienced faculty make the offerings relevant for the entire spectrum of investors, from first-time investors to experienced investors.
It is free and is product-neutral.
There are four learning modules, each comprising videos, podcasts, deep-dives and blog posts with a separate section for discussion. Animation and data visualisation technology is used to actively engage different cohorts of potential investors.