SEBI Chief Ajay Tyagi said that the fund management industry would look different in future due to adoption of artificial intelligence and machine learning. He was speaking at an event organized recently to mark 25 years of NSE.
Tyagi said that the fund management industry has already taken the initial step with robo advisory services. He further said, “As a regulator, SEBI continuously strives to keep up with this ever persistent technological change. A standing committee, Committee on Financial and Regulatory Technologies advises SEBI on FinTech related issues. We are always open to suggestions on new technologies.”
The other key highlights of his speech are:
- Currently, market capitalisation to GDP of India is at 78%. It is far below many of developed countries such as USA (151%), Japan (120%) and UK (116%).
- The total market capitalization of Indian capital market is Rs.150 lakh crore in which retail investors are major shareholders
- Currently, there are 3.5 crore depository accounts
- Participation of retail investors in capital market through mutual funds has increased substantially. The number of folios, which can be considered as a rough indicator of retail participation has reached 8.5 crore. The total AUM stands at Rs.24.5 lakh crore
- Contribution from B30 cities in the total MF AUM now stands at 15%
- 25 years back, retail investors were focused primarily on equity. Today, retail investors are active in a variety of investment products including bonds, derivatives, commodity derivatives and so on
