Sundararaman Ramamurthy, Managing Director & CEO, BSE Limited
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DEBASISH BHADURI
Regulations alone cannot protect retail investors if they do not take adequate precautions while investing in the equity market, said Sundararaman Ramamurthy, Managing Director and CEO, BSE. Ramamurthy felt that investing in mutual funds is the best bet for the investors having no technical knowledge of the equity market.
“You trade what you understand, and you understand what you trade. If you don’t do that, you have a problem,” Ramamurthy said at an event organised by the Calcutta Chamber of Commerce in Kolkata on Thursday.
Stressing the need for investor awareness and responsibility, Ramamurthy urged retail investors to be vigilant and informed. He criticised the tendency of investors to rely on hearsay rather than due diligence.
“You scan a vegetable before you buy it, but when you invest your life’s earnings, you go by hearsay — that’s not how it should be,” he emphasised.
According to him, in the mutual fund space small investors, who are not market experts, may go for index funds and broad-based funds.
On SME IPO’s and stocks, Ramamurthy said these are not meant for retail investors. “There are so many good stocks for retail investors in the main market,” he pointed out.
Responding to a set of questions on possible manipulation in SME listings, Ramamurthy acknowledged that frauds such as pump-and-dump schemes could not be ruled out entirely even if regulators and stock exchanges are vigilant.
BSE is deploying AI and large language models on trial for initial scanning of IPO documents to detect areas of concern, Ramamurthy added.
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Published on April 25, 2025
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