SaaRthi Mobile App | 20 Jan 2022

Why in News

Recently, Securities and Exchange Board of India (SEBI) has launched Saa₹thi – a mobile app on investor education.

  • ‘R’ represents ‘₹’.

Key Points

  • About:
    • It aims to create awareness among investors about the basic concepts of the securities market.
    • The app will also explain about KYC process, trading and settlement, Mutual Funds (MF), recent market developments, investor grievances redressal mechanism, etc.
  • Need:
    • A recent surge is seen in individual investors entering the market, and more importantly a large proportion of trading being mobile phone based.
    • According to NSE (National Stock Exchange) data, the share of Individual investors increased to 45% in 2021 from 39% in 2020.
      • The NSE is India's largest financial market.
  • Securities Market:
    • Securities are financial instruments issued to raise funds.
    • The primary function of the securities markets is to enable the flow of capital from those that have it to those that need it.
    • Securities markets provide channels for allocation of savings to investments and thereby decouple these two activities.
      • As a result, the savers and investors are not constrained by their individual abilities, but by the economy’s abilities to invest and save respectively, which inevitably enhances savings and investment in the economy.
    • Eg. Equity, Debt securities, etc.

Securities and Exchange Board of India (SEBI)

  • SEBI is a statutory body established on 12th April 1992 in accordance with the provisions of the Securities and Exchange Board of India Act, 1992.
  • Its basic function is to protect the interests of investors in securities and to promote and regulate the securities market.
  • SEBI Board consists of a Chairman and several other whole time and part time members.
  • SEBI also appoints various committees, whenever required to look into the pressing issues of that time.

Source: IE