Invest in stock markets for creating jobs, says BSE CEO

Indians who save around USD 600 billion must be encouraged to invest in productive financial instruments like banks or stocks for creating jobs, Bombay Stock Exchange CEO has said.
Bombay Stock Exchange Managing Director and CEO Ashish Chauhan said yesterday that in India 90 per cent of investors were more drawn towards assets like gold and real estate and less than 10 per cent of savings goes towards finance or financial instruments.
"Around 98 per cent of Indians do not invest in financial markets. India is a poor country but it saves around 600 billion dollars," he said while delivering a public lecture at Melbourne-based Australia India Institute.

"Money that goes into real estate or gold is not productive and cannot create jobs. But when it goes into financial instruments like banks or stocks it can be used for creating jobs," Chauhan said.
"Our focus is to attract more Indian investors to invest into Indian stock markets and also from abroad to invest in Indian market," he added.
Chauhan said "I have been told that over next couple of months that India specific funds are going to be launched in Australia".

"Australia has been depended on China for the last 25 years but China has stopped construction. Australia need to look at other countries like India and also as India is a part of commonwealth and share similar frameworks of law," he said.

Chauhan said his ongoing visit was aimed to re-strengthen relations with Australian stock broker associations, business and fund houses that are trying to raise India specific funds.
"Effectively there is huge positive views in Australia about India and opportunities that are coming up in India," Chauhan, who is on a three days visit, said.
On a query of launching new products, Chauhan said "Till now in Indian markets we have given risk-free products that is equities and riskier products that is derivatives. We need to create a framework for risk-free products for more people to participate in Indian markets".