|NSE MD Chitra Ramkrishna in Shillong. Telegraph picture
Shillong, May 4: Meghalaya stands third in the capital market in terms of the number of clients among the states of the Northeast after Assam and Tripura and the volume of trade in the capital market on a daily basis, as far as the Northeast is concerned, is around 10 per cent.
Trading is done mostly under stock market through terminals in Meghalaya.
According to the data available, the cash market turnover in Meghalaya has increased by 74 per cent in the last seven years from a daily average turnover of Rs 1.48 crore in 2007-08 to Rs 2.58 crore in 2013-14. Active clients in the cash market in Meghalaya have also increased by more than 400 per cent in the last seven years.
Although the base is low and the numbers are still small, the National Stock Exchange is seeing significant growth in the region.
NSE managing director and chief executive officer Chitra Ramkrishna, who was here to create awareness among small and medium scale entrepreneurs and to enlist their entities in the stock market, underscored the need for an “inclusive strategy” to develop a market on strong lines.
“India’s equity market is only growing, and there is a need to reach out to the masses across regions, especially those who are yet to have access to financial products,” Ramkrishna told reporters on Friday.
Ramkrishna, who completed a year as NSE managing director and chief executive officer last month, said though the volume of trade in the capital market from the Northeast is around 10 per cent, the number of clients has been reasonable and that the growth has been encouraging.
But wealth alone is not enough as education is crucial to take informed decisions on how to spend, she said.
Therefore, she also underscored the importance of financial literacy and education where awareness on the available financial products is significant.
Earlier, speaking on financial education initiatives for senior school students, Ramkrishna said, “We are already running a course on the financial markets for the students of Classes VIII and IX in 55 schools across the country. We would be very happy if we can start the same initiative in schools in Meghalaya and other parts of the Northeast to empower children to take sound financial decisions when they grow up.”
Stating that India’s financial markets are among the top in the world, she stressed on the need to ensure that domestic customers gain from the advantages, and to ensure that savers have a good financial future.
As part of its efforts to increase financial education and awareness about equity markets in the Northeast, the NSE organised an investor awareness seminar here. The focus of the seminar was on educating investors about their rights and obligations, and precautions they ought to take while trading and on investment opportunities available for investors who wish to trade.
The NSE also organised a conference, in association with the State Bank of India, to educate small and medium-sized companies in the region on the opportunities available for the companies to raise capital for their growth.
SBI is actively involved in financing small and medium enterprises in the region and is currently partnering the NSE to encourage eligible companies to list on NSE’s trading platform for small and medium enterprises called “Emerge”. More than 25 local small and medium enterprises participated and evinced interest to benefit from the platform.
“The growth of most small and medium enterprises is constrained because of the lack of availability of financial resources and the Emerge platform is a good avenue for these companies to raise capital. A number of small and medium enterprises in this region can benefit from the listing, as it would not only help them raise funds but also provide quality visibility and a higher brand value,” Ramkrishna said at the conference.
In the last fiscal, NSE conducted investor awareness seminars in 13 state capitals in the East and Northeast.At the investor awareness seminar on Friday, investors were given guidance on how to trade cautiously and not be misled by market rumours and invest according to a wise investment plan.