National Council of Applied Economic Research
Modernizing Financial Education and Sustaining Investor Confidence through the Investor Protection Framework
The Investor Education and Protection Fund Authority (IEPFA), in partnership with the National Council of Applied Economic Research (NCAER) and I.T.S Ghaziabad, successfully conducted a comprehensive workshop aimed at modernizing financial education and enhancing investor confidence through effective investor protection frameworks.
The workshop brought together prominent experts from various sectors including financial sector, academia, and cybersecurity. The focus was on equipping the youth with necessary skills and knowledge to navigate through the complexities of the modern financial landscape.
In his welcome address, Dr. V N Bajpai, Director of I.T.S Ghaziabad, welcomed the esteemed panellists and participants and highly appreciated the NCAER- ITS collaborative effort for excellence in practical learning and stressed that such workshops provide real-world knowledge and skills that are crucial for every youth. The inaugural address was given by Mr. Surinder Sood, Director of PR at I.T.S – The Education Group, who also lauded the first ever collaborative efforts between IEPFA, NCAER, and I.T.S Ghaziabad, expressing enthusiasm for future joint initiatives aimed at enhancing financial literacy among youth. He emphasized the value of such partnerships in driving impactful educational programs and looked forward to more such endeavours to further empower young investors.
Ms. Anita Shah Akella, CEO of IEPFA and Joint Secretary in the ministry corporate affairs, emphasized, in her message, that the significance of investor education and protection on the national agenda and highlighted how initiatives like this workshop serve as vital awareness programs to equip individuals, especially budding investors with the knowledge and skills needed to protect themselves from prevalent fraudulent acts and scams. She expressed confidence that the discussions and insights from the workshop would substantially contribute to IEPFA’s efforts in creating a more informed, protected, and empowered community of investors.
Dr. CS Mohapatra, IEPF Chair Professor at NCAER, opened the panel discussion session with insights into the critical need for robust financial literacy in today’s fast-evolving economic environment. He moderated the session in a very engaging and participatory mode emphasizing the importance of foundational financial education to safeguard investor interests and enhance market stability. He highlighted how financial literacy serves as a critical defense against fraud and poor investment decisions. Underscoring the urgency for comprehensive and modernised financial education, he stated, “It’s crucial to equip ourselves with modern knowledge to navigate the complex financial landscape safely and to embrace technology, while recognizing the risks and opportunities it presents.”
Prof Mohapatra presented compelling data showing significant strides in financial inclusion and digital payments in India, with bank account ownership among adults increasing from 53% in 2014 to 78% in 2021. He stressed the need for modernizing financial education, using tools like personalized learning platforms and interactive online courses matching with the speed of financial innovations. He also highlighted the initiatives led by the IEPFA to promote financial literacy through campaigns and collaboration with educational institutions, aiming to instill a strong foundation of financial knowledge from an early age. The key to sustaining investor confidence lies not just in understanding the markets, but having an effective investor protection framework by regulators and government. It’s not just about making money; it’s about individuals making informed decisions that secure our financial future and ability to maximize financial well-being, he stated.
A panel discussion featuring Mr. Abhishek Bondia, Co-founder of SecureNow Insurance Broker Pvt. Ltd, Prof. Amit Kumar Singh, Member of FLC, University of Delhi, Ms. Aprajita Sharma, Assistant Editor at Mint and Mr. Gangesh Varma, Principal Associate in Technology and Policy at Saraf and Partners delved into various aspects of financial education, digital advancements, and investor protection.
Mr. Abhishek Bondia stated that while making an investment or buying an insurance, most individuals focus on return on capital and product features. However, equally important is return of capital in an investment and ability to make a claim in insurance. To protect public interest, regulators have put several safeguards in place. The need of the hour is to educate the masses through accessible and modern knowledge sharing methods. This would ensure that public’s confidence in financial markets remain intact, and they keep coming back to the market for their financial needs.
Prof. Amit Kumar Singh highlighted that wealth and health: Both require mindful investments for lifelong prosperity. Effective financial planning, including exploration of diverse investment avenues like investing in IPOs at the right time and in the right company is paramount and essential for navigating uncertainties and achieving long-term financial stability.
Ms. Aprajita Sharma stated that examples may differ but core for financial education remains the same — compounding wealth over long term, taking into account inflation, present needs and retirement goals. While one must know the process to reclaim funds from IEPF, we should make people aware so that it does not happen with others. Adding nominee details and making your family aware of your investments and insurance will ensure smooth transition.
Mr. Gangesh Varma emphasized that Data literacy is going to be an essential element of financial literacy and education of the future. Knowing and understanding your data rights under the data protection laws is a good starting point. However, this can be effective only in the backdrop of proper enforcement of the data protection law, more ethical data processing, and improved cyber hygiene practices. He stated that awareness and capacity building will be foundational because consent is the cornerstone of India’s data protection regime, and a well-informed and empowered user is necessary for meaningful consent.
The workshop concluded with a vote of thanks by Shri Sumit Aggarwal, AGM Awareness at IEPFA, who lauded the collaborative spirit of the conference, aligning stakeholders towards the shared goal of enhancing financial literacy and safeguarding investor interests.
