This article has been written by Mr. Tejas Chandna, a Third year student of Symbiosis Law School, Pune

Introduction 

The Securities and Exchange Board of India (SEBI) has launched a comprehensive initiative aimed at enhancing financial literacy among the public. Recognizing the critical importance of financial education, SEBI has implemented various programs tailored to cater to different segments of society. Few factors that have been processed over time are:-

1. Basic Financial Education: One of the key components of SEBI’s initiative is the Financial Education through Resource Persons Program. Under this program, eligible individuals are trained and enlisted as Resource Persons (RPs) in districts across the country. 

1. These RPs conduct free workshops in local languages, covering fundamental concepts in finance, banking, insurance, pension, and investments. Targeting diverse groups such as Home Makers, Self-Help Groups, Executives, Middle-Income Groups, and Retired Personnel, these workshops aim to disseminate essential financial knowledge. Participants also receive free financial education booklets during these sessions.
2. SEBI also facilitates student visits to its premises, providing them with firsthand exposure to financial markets and regulatory functions. It has developed a comprehensive Financial Education Booklet covering various aspects such as financial planning, savings, investment, insurance, pension, borrowing, tax-saving, and caution against fraudulent schemes.

1. Sector-Specific Financial Education: SEBI extends its financial education efforts to cater to specific sectors through various initiatives. 

1. This includes investor awareness programs conducted in collaboration with SEBI-recognized Investors’ Associations, regional seminars in partnership with exchanges and depositories, and commodity awareness programs facilitated by SEBI-recognized Commodity Derivatives Trainers.
2.  SEBI actively participates in global initiatives such as the World Investor Week organized by the International Organization of Securities Commissions (IOSCO). This annual campaign aims to promote investor protection and education worldwide. SEBI contributes to this endeavor by organizing financial literacy and investor awareness programs across the country during the designated week.

To provide investors with easy access to educational resources, SEBI maintains a dedicated investor website (http://investor.sebi.gov.in). The website offers a wealth of educational materials and information on upcoming investor and financial education programs.

SEBI’s commitment to investor protection is further evident through its mass media campaigns. This article analyses SEBI’s financial literacy programmes for promotion of investor growth. Firstly, it analyses initiatives, which have changed campaigning from Board’s perspective. Secondly, it analyses whether NISM’s role is still relevant in today’s privately promoted Investor education. Thirdly, it encultures how SEBI has changed its strategies in promotion of these programmes over time.

Initiatives Till Now: How SEBI deals with such programmes?

Since 2012, SEBI has utilized various media platforms including television, radio, print, and bulk SMS to disseminate relevant messages to investors. These campaigns cover critical topics such as investor grievance redressal, caution against fraudulent schemes, and the importance of informed investing.

Moreover, SEBI actively addresses investor grievances through its Complaints Redressal System (SCORES). This system enables investors to track the status of their complaints in real-time, thereby ensuring transparency and accountability in the grievance redressal process.

Critically, Securities Exchange Board of India (SEBI) has initiated nationwide financial education campaigns targeting diverse demographic segments such as school and college students, working professionals, middle-income groups, homemakers, retirees, and self-help groups. To facilitate this, SEBI has enlisted Resource Persons across India who are trained in various financial topics and equipped with market knowledge. These certified individuals conduct workshops covering essential areas like savings, investments, financial planning, banking, insurance, and retirement planning for their respective target groups.

Furthermore, SEBI collaborates with investor associations nationwide to conduct education programs and organizes regional seminars in partnership with stakeholders such as stock exchanges, depositories, and financial associations. SEBI’s dedicated investor education website offers study materials, FAQs, and resources in multiple languages to enhance accessibility.

SEBI encourages school and college students to visit its premises to gain insights into its operations through the ‘Visit SEBI’ program. Additionally, SEBI provides a toll-free helpline for investors to seek guidance and redressal for their grievances nationwide. SEBI’s investor education campaigns are also disseminated through various media channels in 14 Indian languages.

For grievance redressal, SEBI operates the Complaint Redress System (SCORES), a centralized web-based platform where investors can monitor the progress and actions taken on their complaints. SCORES is integrated with the Centralised Public Grievance Redress and Monitoring System (CPGRAMS) for enhanced efficiency and transparency.

NISM’s Role: To what extent is the body still relevant in promoting Investor Education?

By plain definition, NISM is dedicated to fostering excellence in regulatory practices within both domestic and international arenas, serving regulators and market participants alike. Through its capacity-building and advanced training programs, NISM equips securities market professionals, including regulators, with the necessary skills for policy formulation, implementation, and adherence. These initiatives ensure that participants remain updated on the latest legal frameworks, market products, processes, and technologies. Beyond the borders of India, NISM actively contributes to the development of securities markets in emerging economies such as Bangladesh, Myanmar, Cambodia, Laos, Vietnam, and other members of IOSCO, through collaborative high-level training endeavors. Its specialized programs position it uniquely to nurture the next generation of securities market professionals.

However, NISM lends support to SEBI’s efforts in promoting financial and investor education by identifying and training individuals and organizations according to SEBI’s criteria. Post-training, these entities disseminate investor education nationwide under SEBI’s guidance.

Recognizing the pervasive influence of money in our lives, NISM emphasizes the importance of financial literacy. It aims to instill basic financial skills across diverse demographics, ranging from students to young investors, professionals, and retirees but through Investor Education programs conducted for various government institutions, law enforcement agencies, private and public organizations, and colleges nationwide, NISM addresses the demand for knowledge on investor education and protection.

Beyond that, NISM collaborates with Financial Intermediaries under CSR initiatives to deliver Financial Literacy programs for college students. These programs, facilitated by trained resource persons associated with NISM, aim to cultivate saving and investment habits among youth while preparing them for careers in the financial services sector.

SEBI has changed over time as NISM also prioritizes enhancing corporate governance standards across industries. It offers training and capacity-building programs covering various aspects of corporate governance and company management. These programs cater to regulators, compliance professionals, key managerial personnel, directors of listed companies, and government officials, and utilize diverse formats such as classroom lectures, workshops, role-playing, and expert interactions.

How SEBI has changed with respect to Financial Literacy Programmes?

SEBI has adopted an innovative approach to disseminate financial literacy across diverse segments of society, employing a network of trainers or Resource Persons (RPs). These RPs conduct workshops in local languages targeting various groups such as school children, college students, middle-income groups, executives, homemakers, retirees, and self-help groups. The workshops cover topics including savings, investments, financial planning, banking, insurance, and retirement planning, with free distribution of financial education booklets to participants. As of March 2017, SEBI had recruited approximately 1,400 RPs who conducted over 50,000 programs in more than 540 districts across 29 states and six union territories.

Furthermore, SEBI facilitates educational visits to its offices for students from schools, colleges, and professional institutes. These visits aim to impart basic financial education and provide insights into SEBI’s role in the securities market. Since the inception of this initiative, 1,174 such programs have been conducted, with 567 programs held during the 2016-17 period.

SEBI’s efforts are part of a broader national strategy for financial education, which was proposed on November 11, 2011. The National Centre for Financial Education (NCFE), incubated in the National Institute of Securities Markets (NISM), plays a pivotal role in this strategy. NCFE conducts various activities for financial education, including the National Financial Literacy Assessment Test (NFLAT), which saw participation from approximately 1,81,000 students in 2016-17. NCFE’s website, available in eight vernacular languages, serves as a comprehensive resource for financial education. Additionally, NCFE’s “Training of Teachers” initiative aims to equip educators with the skills to deliver unbiased financial education in schools, with around 300 schools already registered for this program. Conclusively, SEBI’s growth has changed from merely proposing and experimenting to programming and managing through today’s day and age marketing strategies that usually are seen by NGOs and startups.

Conclusion 

Over time, SEBI has introduced numerous initiatives aimed at enhancing investor experience and fostering transparency in the market, leveraging technological advancements such as screen-based trading, dematerialization of securities, rolling settlement, straight-through processing, SCORES mechanism, ASBA facility, KRA mechanism, e-KYC, among others. Moreover, it has consistently advocated for improved disclosures and investor awareness, regularly cautioning the public against illicit fundraising schemes.

More recently, SEBI has launched the SMARTs program to bolster investor education, introduced Online Dispute Resolution, implemented T+1 Settlement, and established investor service centers to streamline investor interactions. Additionally, SEBI has undertaken significant reforms in the mutual funds sector, further enhancing the regulatory landscape and investor protection measures. However, SEBI for its Literacy Programmes needs a separate Think Tank or Government Policy Institute for such initiatives, which will make these programmes accessible to common masses in local languages.

References

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