21 Jan 2022 Saarathi mobile app
Recently, the Securities and Exchange Board of India (SEBI) has launched a mobile app, Saarathi, to educate investors.
Introduction:
- It aims to create awareness among investors about the basic concepts of securities market.
- The app will also explain the KYC process, trading and settlement, mutual funds (MFs), recent market developments, investor grievance redressal mechanism, etc.
Requirement:
- Recently there has been an increase in the entry of individual investors into the market, and more importantly, a major part of the business is mobile phone based.
- According to the ‘National Stock Exchange’ data, the share of individual investors increased to 45% in the year 2021 from 39% in the year 2020.
- The ‘National Stock Exchange’ is the largest financial market in India.
Securities market:
- Securities are a type of financial instrument, which are issued to raise money.
- The primary function of securities markets is to enable the flow of capital from those who have it in excess.
- Securities markets provide channels for allocation of funds for investment and thus separate these two activities.
- As a result, savers and investors are not constrained by their individual capabilities, but by the economy’s ability to invest and save respectively, which inevitably leads to increased savings and investment in the economy.
- Example: Equity, Debt Securities etc.
Securities and Exchange Board of India (SEBI):
- SEBI is a statutory body established on 12th April, 1992 under the provisions of Securities and Exchange Board of India Act, 1992.
- Its basic function is to protect the interests of investors in securities and to promote and regulate the securities market.
- SEBI Board consists of a Chairman and some other full time and part time members.
- SEBI also appoints various committees to look into the pressing issues in time as and when required.
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