X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Journey to e-broking - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Jan 10, 2001

    Journey to e-broking

    A few days ago, I had the opportunity to do my first trade through the Internet, and I found it to be a “mind blowing experience”. I have studied the Indian capital markets for close to a decade now and have seen it evolve from doing a trade through a complicated outcry system to one of doing trade on the net. No more do I have to worry about calling the broker, placing the order and wait till the evening for the confirmation. I have to just log on to the net and do the trade by myself and also receive immediate confirmation.

    Kudos to the government and the regulator SEBI, they have done a great job in ushering in changes in the capital markets. I do not have to worry about outdated transfer deeds, bad deliveries and the staples on the share certificates. Dematerialisation has taken care of all that. Not only has investing become easier but it has also become cheaper.

    Investors shaken and stirred
    But of what use are these technologies to the investor if the government has failed in increasing the menu of investible stocks, taking action against errant capital market players, and in creating a vibrant primary market. Barring a few technology stocks, the universe of stocks that are worth investing for the long term have actually shrunk over the past decade. Lack of government commitment to its promises saw multinational companies like ABB and Siemens sink in huge amounts of capital on projects that failed to take off. Also the delay in PSU disinvestments saw dramatic erosions in the value of such asset rich companies like MTNL, VSNL, Indian Oil, HPCL, BPCL, ONGC, Maruti etc. Mismanagement has killed most of the state electricity boards and public sector banks. The result of all such mismanagements is a shaken investor who lost money on his investments.

    Confidence building exercise needed
    Just as the army undertakes flag marching after a civil riot to increase the confidence among the citizens, the government has to take steps to increase investor confidence. These include unlocking the value of public sector assets, by being firm on its commitment to usher in changes in the power and telecommunications sector, improving the general infrastructure, ensuring a level playing field to the local manufacturers against cheap imports (or rather dumping) and finally by penalising the errant players on the capital markets.

    The government should realise that a vibrant capital market is essential for raising risk capital in the economy. It cannot sit quiet on its achievements related to the trading mechanisms of the exchange but will have to deliver on its promises related to reforms. It should also realise that confidence in the system is everything for the investors. This is unlikely to be achieved on a large scale if the investors find that no action has been taken against unscrupulous promoters who raised money for projects that never saw the light of day or find that no action has been taken against the proponents of the 1992 stock market scam. The reduced number of IPO’s barring the few that were done during the TMT boom, is a clear pointer to the fact that the retail investors are averse to investing in risk capital.

     

     

    Equitymaster requests your view! Post a comment on "Journey to e-broking". Click here!

      
     

    More Views on News

    How to Ride Alongside India's Best Fund Managers (The 5 Minute Wrapup)

    Jun 10, 2017

    Forty Indian investing gurus, as worthy of imitation as the legendary Peter Lynch, can help you get rich in the stock market.

    How To Read Your Mutual Fund Account Statement Correctly (Outside View)

    Aug 17, 2017

    PersonalFN simplifies the mutual fund account statement for you.

    This Small Cap Can Drive Chinese Players Out of India (and Make a Fortune in the Process) (The 5 Minute Wrapup)

    Aug 17, 2017

    A small-cap Indian company with high-return potential and blue-chip-like stability is set to supplant the Chinese players in this niche segment.

    Which Gods Will Bring Down the US Empire? (Vivek Kaul's Diary)

    Aug 17, 2017

    Mr Trump is in the White House and the gods are in their heavens; what's not to like?

    Will They Haul Off Trump's Statue, Too? (Vivek Kaul's Diary)

    Aug 16, 2017

    All across the country, the old gods become devils. New, gluten-free gods take their places...

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    Proxy Plays: A Smart Way to Bet on 'Off Limits' Companies(The 5 Minute Wrapup)

    Aug 4, 2017

    The small-cap space is full of small players that are clear proxies to great growth stories and Indian megatrends.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    S&P BSE SENSEX


    Aug 17, 2017 03:37 PM

    MARKET STATS