NSE ties up with IIMB for investor education

India’s largest stock exchange the National Stock Exchange of India Ltd (NSE) on Monday announced an exclusive tie up with the Indian Institute of Management, Bangalore (IIMB) to launch a joint platform for investor education.

The platform will be hosted by IIMB and the investor education course material will be developed and hosted by the institute in coordination with the National Stock Exchange Limited Investor Protection Fund Trust (NSE IPFT). “This is the first time that NSE has tied up with any IIM in the country. IIMB will create dedicated videos on investor education and host on their website,” Vikram Limaye, Managing Director and CEO, NSE told DH.

He said NSE has been organising investor education programmes across the country for some time now. Last year, it conducted 2,400 such programmes across the country and this year, it plans to organise 2,500 awareness and education programmes for investors across 500 districts in the country, he said.

“We want to deepen and broaden the awareness about investment among the common investors. We are reaching out to even Tier-II and Tier-III cities in the country. The penetration level in the country as far as investment is concerned, is a low 2% with less than 5% of the household savings invested in the markets. Our programmes will help increase that level,” Limaye said.

In the emerging economies, the penetration level is much higher at 12-15%, while it is 30-40% in the developed economies. India has a long way to go in this direction, he said.

“The IIMB will develop, disseminate and continually manage investor education content that is product neutral and demand driven. The material will incorporate the latest in digital technology,” Prof. S G Badrinath, Chair of the Centre for Capital Markets and Risk Management at IIMB said, adding that NSE will fund the programme.

He said IIMB faculty members will work on developing videos to educate the investors. To begin with, there will be a dozen videos that will be uploaded on a dedicated website. The programme will go live over the next three months, he added.