I was fortunate to be invited to
attend a function held recently to celebrate the 20th anniversary of
the birth of NSDL - National Securities Depository Ltd. (NSDL).
Earlier in the day I was even more fortunate to have spent an hour with an outstanding, dynamic and young executive of NSDL. On my request he patiently explained to me how online trading in India works - NSE, BSE, NSDL, CSDL, brokers, depository participants, electronic settlement, demat accounts, trading accounts etc. The young man drew neat diagrams on my whiteboard for me. He wasn't even obligated to - they are esteemed customers of the organization I work for. Only passion could have made him educate me thus.
At the end of the most invaluable and educative session I felt overwhelmed. In spite of my 30 years of work in banking technology, I found the enormity of the system daunting - just thinking of it. Those of us who use online trading and demat accounts are used to buying and selling shares with a few mouse clicks. What those clicks unleash is mammoth. Awestruck, I said to him, "Isn't this the real economic reform story of India?". He smiled and nodded. The conversation then turned to the economic and administrative doyens who made it happen, the doughty folks who started it all 25 years ago. I was in any case looking forward to hearing the speech of the honorable Mr. UK Sinha, the current chairman of SEBI who is one of those visionaries.
The one name which kept on popping up in the conversation that afternoon and later in speeches at the ceremony in the evening was of a gentleman, who people at NSDL affectionately call "CBB". Mr. CB Bhave, an IAS officer who led SEBI in its formative days. Mr. Bhave's name is etched in history as one of the most outstanding regulators India has seen.
Mr. UK Sinha in his address said, "Dematerialization is the single biggest economic reform that India has seen". That is a million dollar statement for multiple reasons. Firstly I believe it to be true. As more and more Indians look at securing their fiscal futures by building their corpuses, they will turn to the capital markets, be it stocks or mutual funds. The risks of capital markets and the management of that risk apart, dematerialization has ensured that a graceful and efficient platform for these investments is in place. My generation (1960s born) is yet converting from bank deposits to securities. However it is very obvious to me that for the next generation (nephews, nieces, offspring), capital markets is the starting point. Secondly, it is an example of economic reform that can be carried out without a politicized, vitriolic, divisive debate involving the entire citizenry.
The story of SEBI and NSDL should serve as an inspiration to bright young minds to work for the state, who would otherwise succumb to the popular notion that public sector jobs are inherently unenterprising and hence best avoided. In fact in a country like India where the public sector addresses problems involving millions of people, it affords opportunities for excellence that have few substitutes in the world. That is the learning for me from this recent experience. It is good advice to give to youth if and when they seek it.
Earlier in the day I was even more fortunate to have spent an hour with an outstanding, dynamic and young executive of NSDL. On my request he patiently explained to me how online trading in India works - NSE, BSE, NSDL, CSDL, brokers, depository participants, electronic settlement, demat accounts, trading accounts etc. The young man drew neat diagrams on my whiteboard for me. He wasn't even obligated to - they are esteemed customers of the organization I work for. Only passion could have made him educate me thus.
At the end of the most invaluable and educative session I felt overwhelmed. In spite of my 30 years of work in banking technology, I found the enormity of the system daunting - just thinking of it. Those of us who use online trading and demat accounts are used to buying and selling shares with a few mouse clicks. What those clicks unleash is mammoth. Awestruck, I said to him, "Isn't this the real economic reform story of India?". He smiled and nodded. The conversation then turned to the economic and administrative doyens who made it happen, the doughty folks who started it all 25 years ago. I was in any case looking forward to hearing the speech of the honorable Mr. UK Sinha, the current chairman of SEBI who is one of those visionaries.
The one name which kept on popping up in the conversation that afternoon and later in speeches at the ceremony in the evening was of a gentleman, who people at NSDL affectionately call "CBB". Mr. CB Bhave, an IAS officer who led SEBI in its formative days. Mr. Bhave's name is etched in history as one of the most outstanding regulators India has seen.
Mr. UK Sinha in his address said, "Dematerialization is the single biggest economic reform that India has seen". That is a million dollar statement for multiple reasons. Firstly I believe it to be true. As more and more Indians look at securing their fiscal futures by building their corpuses, they will turn to the capital markets, be it stocks or mutual funds. The risks of capital markets and the management of that risk apart, dematerialization has ensured that a graceful and efficient platform for these investments is in place. My generation (1960s born) is yet converting from bank deposits to securities. However it is very obvious to me that for the next generation (nephews, nieces, offspring), capital markets is the starting point. Secondly, it is an example of economic reform that can be carried out without a politicized, vitriolic, divisive debate involving the entire citizenry.
The story of SEBI and NSDL should serve as an inspiration to bright young minds to work for the state, who would otherwise succumb to the popular notion that public sector jobs are inherently unenterprising and hence best avoided. In fact in a country like India where the public sector addresses problems involving millions of people, it affords opportunities for excellence that have few substitutes in the world. That is the learning for me from this recent experience. It is good advice to give to youth if and when they seek it.
