MUMBAI, Dec 22: Pitching for introduction of new products to make Indian capital markets deeper and more competitive, leading bourse NSE says ETFs can be the best bet for drawing mass retail investors to equities in a big way.
Retailing of Government securities and other bonds can be another big draw among small investors, National Stock Exchange’s MD and CEO Chitra Ramkrishna said.
ETFs or Exchange Traded Funds are like mutual funds that comprises of a host of securities and their units can be sold and purchased through stock exchanges like individual shares.
“There are two different requirements — the institutional and high-end investors require complex, sophisticated products meeting different needs of their risk profile etc, while the mass retail investors need simple products that they can invest in.
“As an exchange, it is our business to provide both ends of the spectrum and we need to bring in right products for both kinds of investors,” Ramkrishna told reporters in an interview.
Ramkrishna, who has been associated with NSE since its inception 20 years ago and assumed charge as its CEO in April this year, said that India needs to deepen and broaden its capital markets.
“Rather than just worrying about the exports of our markets to foreign locations, we should also open up further and be more competitive.
“NSE is fully geared up to do its part, be it new products, new infrastructure etc, to contribute to the growth of Indian markets for its next big leap,” she said.
NSE will soon launch a new product that would provide investors to trade in 10-year Government securities interest rate futures.
When asked when this new product can be launched, the NSE chief said it couild be “very soon”.
“We have had meetings with banks, mutual funds and other entities to sound them out on the new product, get their feedback and understand their readiness. The product should be launched in next few weeks,” she added.
“Apart from IRF, the other products that we are very upbeat about are ETFs. We really think that it is a product that is appropriate for the mass retail investors in India. If we can have good broad- based ETFs, that would be the kind of passive investment vehicle that any retail investor should be looking at,” she added. (AGENCIES)
Trending Now
E-Paper
Follow our WhatsApp channel