Stock market needs to shed “satta bazaar” image: Niti

Government's policy think-tank Niti Aayog Wednesday suggested stock markets should work to shed their image as “satta bazaar” from the minds of people in India.

Niti Aayog Vice Chairman Rajiv Kumar rued that the participation of Indian households in the stock market was only 2% at present.

He was speaking at the inaugural function of the silver jubilee celebrations of National Stock Exchange (NSE) in New Delhi.

“Only two per cent Indian households come into the capital market though it is expanding fast,” Kumar said, adding mush of Indians still think it is a “satta bazaar”.

He said this perception needed to be changed and that at least 40% of Indian households must join the capital markets.

Kumar also sought bourses to do a better integration of small and medium enterprises with stock markets. Currently, small companies did not have access to exchanges.

He said approximately $1.5-2 trillion dollars of Indian's money was likely to be invested in the stock, bond and money markets and that there should be an adequate preparation for that.

Former Prime Minister Manmohan Singh, who as a finance minister had commenced NSE's operations in India in 1994, recalled “there were many sceptics at that time, including the ones in the financial sector. It is the country's good fortune that they have been proved wrong”

NSE unveiled a new logo for itself on the 25th year celebration. Union Minister Nitin Gadkari, Deputy Chairman and Delhi lieutenant-governor Anil Baijal participated in the event.