(ANI): Amid volatility in the equities markets, Finance Minister Nirmala Sitharaman on Tuesday said retail investors have joined the Indian stock markets in a big way and seem to act as shock absorbers.
"Retail investors in India have come in a big way that they now seem to act like shock absorbers. If FPIs and FIIs went away, our markets didn't show ups and downs distinctively because small investors have come in a big way in the country," Sitharaman said while addressing an event organised by the Ministry of Corporate Affairs.
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, 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.
"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.