According to UK Sinha, investment in mutual funds and equity market is important for the people in their long-term interest
Patna: UK Sinha, chairman of the Securities and Exchange Board of India (SEBI) has asked the people of Bihar to consider investment in the capital market in equity and mutual funds for better long-term returns, reports PTI.
Investment in mutual funds and equity market was important for the people in their long-term interest as the centre has launched a number of pension schemes where the investors can put in their money for safe and handsome returns over about 20 years after retirement, he told a seminar.
The mutual fund sector has only 0.42% share of Bihar's investment at Rs1,509 crores and only 24 offices, while the number of d-mat account holders in the state is quite low.
There was only one registered share broker, 1,000 terminals of share market in the entire state and only two companies located in it listed on the bourses, the SEBI Chairman said.
He said SEBI had framed rules for popularizing investments in mutual funds in the small towns and was giving an opportunity to the non-income tax payers in the equity market.
SEBI has also proposed steps for propagation of financial literacy among the people to motivate them to invest in equity and venture capital.