In the midst of equities market volatility, Finance Minister Nirmala Sitharaman stated on Tuesday that ordinary investors have flocked to India’s stock markets in large numbers, acting as shock absorbers. “In India, retail investors have grown to the point where they now appear to act as shock absorbers. If FPIs and FIIs were to disappear, our markets would lose their distinct ups and downs because small investors have flooded the country in large numbers “Sitharaman made the remarks while speaking at a Ministry of Corporate Affairs event.
Including enactment of the Insolvency and Bankruptcy Code, Decriminalisation of Companies Act 2013 and Limited Liability Partnership Act, 2008. De-criminalisation of technical & procedural violations was a very important step taken during the pandemic as PM’s message has been ‘trust your businesses, give them confidence that Government is looking at them favourably’, she said.
Sitharaman, who also holds the Corporate Affairs portfolio, said there has been a very significant increase in the number of retail investors in the country. As per the Central Depository Services (India) Ltd data, the number of active Demat accounts in India crossed the six-crore mark in March 2022. In her address during the Azadi Ka Amrit Mahotsav celebrations, Sitharaman recapitulated the reforms undertaken during the last 8 years by the Ministry of Corporate Affairs.
“The MCA is uniquely placed as it is facilitating people while regulating. It has impacted the lives of common Indians, be in their small businesses, or part of a larger business or even small investors,” the Finance Minister said. “MCA kept itself on its toes while facing challenges due to COVID-19 and came up with different quick-footed steps that even during the lockdown, people could go about their normal businesses without having to worry about compliances,” she added.
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