Indore (Madhya Pradesh): ‘An investor should invest his savings incurring from a job or business into Mutual Funds and Equity Traded Funds. The investor should first have the capacity to study the companies, then enter the secondary market. Intra-day trading is not trading or investment. If one does not have the time, passion and capacity, he should not invest in the share market’.
Ashish Kumar Chauhan |
Ashish Kumar Chauhan, Managing Director (MD) and CEO of National Stock Exchange of India (NSE) gave these tips to investors in conversation with this correspondent at NSE building in Mumbai.
Chauhan is considered the the architect of automation of stock market in India since 1993. He is also considered as the father of ‘Modern Financial derivatives in India’. Very confidently he replied to every question and explained the answers with examples.
NSE is World’s largest derivatives exchange for 5th year
According to the data published by the Futures Industry Association (FIA) for 2023 NSE is the World’s largest derivatives exchange for the fifth year in a row. As per the data published by the World Federation of Exchange (WFE) for 2023 NSE is ranked third in the equity settlement based on the number of traders. NSE has record 9.5 cr. investors across the globe. ‘Owing to mobile phone and easy KYC procedure the number of investors is continuously increasing. Particularly, the growth is being registered from 2020 to 2024. Even mutual funds are investing in the share market. Since savings are increasing in India, thus people are investing in companies, through the share markets. Investment is the combination of income and wealth. One should start investment by investing in mutual funds and equity traded funds (ETF)’ said Chauhan.
Chauhan, a member of the founding team of NSE, says that the Securities and Exchange Board of India (SEBI) is carrying out dialogue over the entry of retail investors in the Future and Options (F&O) section of the share market. He said that data security is definitely a challenge, but our team is working hard. Talking about the increasing practice of Algo trading, a system-generated way of trading, he said that it is being carried-out as per the rules set by SEBI.
'Nothing wrong about AI-based trading'
Talking over AI-based trading, he said that there is nothing wrong about it. Those who accept the technology, move forward. In the election result day trading, a day when the stock markets crashed, retail investors earned the money, this is the fact. Investors should trade through the genuine broker’s apps. For this they can check with the list available on the website of the exchange.
