Mobile trading pushes huge spurt of people into financial markets

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As more people take up mobile trading, the number of people in financial markets has been on the rise, BSE chairman Ashish Kumar Chauhan said. He also added that the Jan Dhan-Aadhar-Mobile (JAM), which added about 30 crore accounts within a year, is what brought India into the financial inclusion model.

From (January 1 2020-present), the number of investors has grown by 60%, with an average daily addition of 70,000 people taking the total tally to 7.5 crore investors, said the BSE chairman. In 2008, BSE had one crore investor accounts, while in January 2021, the number had shot up to six crore investor accounts, he adds.

Mobile trading contributed to a massive growth

Owing to its large geographical reach, mobile trading has led to the rise in the large number of people entering the financial markets, the BSE chairman said.

When it comes to numbers, the western region which has the highest number of accounts at 34%, saw a rise of 25%, followed by the northern region which has 28% of the total accounts, which saw an increase of 67%. The southern region which accounts for 23%, saw its numbers go up by 61%, and finally, the eastern region which accounts for 13%, saw its customer accounts number go up by 68%. In Andaman and Nicobar Islands and Lakshadweep, people use JAM to buy mutual funds, he said.

According to Chauhan, financial institutions are coming up in various areas, as traditional institutes including stock exchanges are under tremendous pressure to maintain the business model. He also added that traditional institutes are also trying to create new regulations to maintain their business models.

He further added that India should create more competing institutions on a regulatory framework basis so that if one closes for a short or a long period of time, the rest of the ecosystem continues to work.