Speaking on the occasion of World Investor Week 2021 at the Multi Commodity Exchange of India (MCX), Sebi Executive Director G P Garg said there is an urgent need to increase awareness about the commodity derivatives market among investors as the level of financial inclusion in the segment is very low. The World Investor Week 2021 is being observed from November 22-28.
“We did a survey earlier under the aegis of the National Centre for Financial Education and we found that the level of financial inclusion in the commodity derivatives market is very low. In India, only four per cent of the adult population are aware of or have some kind of investments in the commodities market,” Garg said. There is a need for a coordinated awareness initiative in commodity derivatives market in associations with Exchanges, Sebi and other stakeholders, he noted.
He said the market regulator has also designed a special programme for creating awareness about the commodities derivatives known as – Commodities Derivatives Trainers (CoTs). CoTs are training institutions that conduct commodities awareness programmes across the country. So far, Sebi has recognised 23 CoTs institutes.
“During 2021, Sebi-recognized CoTs conducted around 20 awareness programmes, but in this year up to October 31, we have conducted more than 68 programmes across the country,” Garg said.
SEBI has recently taken an important step in respect of the preparation of two investor charters aimed at protecting investors’ interest. These charters were issued with the vision to protect the interests of investors by enabling them to understand the risks involved in the securities market and invest in a fair, transparent and secure manner; and get services in a time bound and efficient manner.
There is another investor charter that has been developed by Sebi in consultation with registered intermediaries, regulated entities and asset management companies. It consists of vision and mission statements, details of business and transactions and services provided to the investors. It also includes timelines pertaining to various services provided to the investors, Garg said.
“So, I want to sensitise that if we do not deliver within the timeline prescribed, investors have a right to complain,” Garg added.
