Archives: Event

Celebration of 8th Foundation Day of IEPFA In joint collaboration with ICSI and NCAER

Empowering Investors: Financial Literacy as the Key to combat Fraud and Digital Scams

The Investor Education and Protection Fund Authority (IEPFA), under the Ministry of Corporate Affairs marked the celebration of its 8th Foundation Day with a collaborative event alongside the National Council of Applied Economic Research (NCAER), New Delhi and the Institute of Company Secretaries of India (ICSI). The event focused on the theme “Empowering Investors: Financial Literacy as the Key to Combat Fraud and Digital Scams,” emphasized the vital role of financial literacy in safeguarding the interests of investors in today’s rapidly evolving digital landscape.

The session featured insights from experienced speakers from diverse fields with financial policy and regulatory expertise from SEBI, RBI and also market analyst, Government and IEPFA in financial literacy and fraud prevention. Their expertise offered the participants a deeper understanding of how to apply financial education to distinguish between genuine opportunities and fraudulent schemes. By enhancing their financial literacy level, they will not only be better prepared to spot potential scams but also make more informed investment decisions, contributing to their overall financial well-being and confidence.

In her Keynote Address Ms. Anita Shah Akella, CEO, IEPFA and Joint Secretary, Ministry of Corporate Affairs, reiterated the authority’s commitment to promoting investor education and protection. She emphasized that financial literacy is not only crucial for protecting investors from fraud but also plays a key role in fostering long-term financial well-being. Through strategic partnerships with organizations like NCAER and ICSI, IEPFA continues to take proactive measures in creating a robust framework for investor protection.

To set the tone of the event, a special address was given by Mr. Dhirendra Kumar, Board Member of IEPFA and CEO & Founder of Value Research. Additional remarks were delivered by Lt. Col. Rajesh Kumar, General Manager of IEPFA and CS Manish Gupta, Immediate Past President of ICSI. Taking a significant step towards enhancing financial literacy and investor education across various demographics, IEPFA has released a set of five handbooks tailored to meet the unique needs of different segments of the population. These handbooks, designed with carefully curated content, provide valuable financial education to school students, homemakers, retired persons, self-help groups, and college students.

The highlight of the event was a technical session chaired by IEPF Chair Prof. Dr. C. S.  Mohapatra as the moderator and speaker. Speaking at the event, Dr. Mohapatra asserted that as we celebrate the 8th Foundation Day, it is imperative to acknowledge the progress IEPFA has made in safeguarding the interests of investors. However, with the rapid digitalization of financial services, the risk of fraud and scams has also escalated. He also highlighted that by equipping individuals with the knowledge to make informed decisions, we can help them identify red flags and protect their assets. Financial education fosters confidence, enabling investors to navigate complex markets with clarity. Ultimately, a well-informed investor is the best defense against financial misconduct, ensuring a safer, more transparent investment environment for all, he stated.

Prominent speakers at the event included Lt. Col. Rajesh Kumar, General Manager, IEPFA Ministry of Corp. Affairs, Mr. Gaurav Gupta, Deputy Director, IEPFA, MCA, Mr. Rajeev Saksena, Joint Secretary (Investment), DEA, Ministry of Finance, Mr. Dhirendra Kumar Member, IEPFA Board, & Founder and CEO Value Research,  Dr. Manas Shankar Ray, former Chief Commissioner in Income Tax (IRS), and Mr. Shailendra Nath Jha, Former DGM & DY Ombudsman, RBI ,  who shared valuable insights on how investors can protect themselves through increased awareness and understanding of financial products and digital platforms. The discussions also covered practical strategies for identifying and avoiding fraudulent schemes, as well as the role of regulatory bodies in ensuring investor protection.

Lt. Col. Rajesh Kumar highlighted that the rise in digital scams and frauds has made it imperative for us to intensify our efforts to educate and protect investors. This is where the true essence of IEPFA’s mission lies—empowering individuals with the knowledge and tools they need to make informed decisions and move through the financial landscape with assurance and safety.

Mr. Rajeev Saksena emphasized on the key role that financial literacy plays in protecting investors from fraud and digital scams. He also emphasized on preventing financial fraud for a safer digital financial environment through improved financial literacy.

Mr. Dhirendra Kumar emphasised that Cyberfraud strikes the most vulnerable sections–older people as well as those who find difficult to deal with technology. As a society, we owe it to them to stamp out this menace and we must spare no effort in doing so. It would be tragic and deeply unfair if a technology that can enable prosperity instead becomes a tool in the hands of criminals and we must not allow it to happen.

Dr. Manas Shankar Ray highlighted the risks posed by various frauds and scams plaguing the financial markets, and the challenges for investors, particularly retail investors. While appreciating the actions taken by the government and various regulators to mitigate such challenges, he emphasized the need for enhanced regulatory oversight and inter-regulatory coordination / consolidation to promote more effective investor awareness and protection measures to fight the menace of digital scams and frauds. He also mentioned about the remedies available under the Consumer Protection Act and Advertisement Standards Council guidelines for redressal of consumer grievances in financial markets.

Mr. Shailendra Nath Jha stressed on the fact that Fake trading Apps, Unbridled growth of financial influencers, greed and lack of awareness is leading to most of the investment fraud amongst the vulnerable group especially Senior citizens.

Drawing upon his extensive expertise in investor protection and financial education, Mr. Gaurav Gupta emphasised the importance of empowering individuals with the knowledge needed to make informed financial decisions. He provided actionable insights on how financial literacy serves as a powerful tool to mitigate risks, particularly in the digital space, where fraud is becoming increasingly sophisticated. His address underscored the commitment of IEPFA to continue promoting investor education and fostering a secure financial environment for all.

The Journey from Financial Education to Financial Empowerment: Ensuring Investor Protection to maximize Financial Well-being

The Investor Education and Protection Fund Authority (IEPFA), Ministry of Corporate Affairs and the National Council of Applied Economic Research (NCAER), New Delhi, in collaboration Christ University, Delhi-NCR successfully conducted a comprehensive workshop aimed at “The Journey from Financial Inclusion to Financial Empowerment: Ensuring Investor Protection to maximize Financial Well-being” on Wednesday, August 21, 2024, at Christ University, Delhi-NCR.

This highly engaging workshop attracted over 600 participants and featured prominent speakers, including financial sector expert, Government representative, claim settlement expert, academicians, and Capital Market Specialist. The workshop is part of the ongoing efforts by IEPFA and NCAER to equip youth people with the knowledge and skills necessary to navigate the financial landscape effectively and securely.

In her Welcome Address, Dr. Shivani Chaudhary expressed her delight at the collaborative effort and emphasized the importance of such workshops providing real-world knowledge and skills that are crucial for today’s youth.

Fr. (Dr.) Jossy George, Director & Dean, in his Inaugural Address, praised the first ever collaboration between IEPFA, NCAER, and Christ University, Delhi-NCR, and expressed enthusiasm for future joint initiatives aimed at enhancing financial literacy among the youth.

Ms. Anita Shah Akella, CEO of IEPFA and Joint Secretary in the Ministry Corporate Affairs, in her message, conveyed that investor education and protection is on the national agenda and highlighted IEPFA’s efforts in creating a more informed, protected, and empowered community of investors. Through her message, she encouraged the students to actively participate, engage with IEPFA initiatives and take this opportunity to enhance their understanding and promote advocacy of investor rights and education. She called for involvement of the youth in driving the progress IEPFA aims to achieve in safeguarding the interests of investors across the nation. 

Dr. CS Mohapatra, through his highly interactive manner moderated the session and stated that the journey from financial inclusion to financial empowerment is practically a long step towards maximizing financial well-being. While financial inclusion ensures that individuals have access to essential financial services, true empowerment is achieved only when they are equipped with the knowledge and tools to make informed decisions. By prioritizing investor protection, we safeguard these individuals from potential risks, foster trust and confidence in the financial system and sustain their participation. Together, financial inclusion, literacy, and protection form a robust foundation that leads to long-term financial security and prosperity.

The panel discussants — Mr. Sumit Aggarwal, AGM Awareness, IEPFA, Ministry of Corporate Affairs, Government of India, Ms. Sumitra Chowdhury, Former Director, Financial Stability, DEA, Ministry of Finance, Government of India, Mr. Varun Gupta, Regional Head, BSE, Delhi and Dr. Anil Kumar, Professor, Delhi School of Economics & Independent Director, Board of Directors of Life Insurance Corporation (LIC) of India discussed the importance of financial literacy rigorously and different initiatives taken by the Government as well as regulators, including IEPFA, in promoting financial literacy and financial inclusion.

Mr. Sumit Aggarwal, AGM Awareness, IEPFA, effectively underscored the organization’s impressive accomplishments in recent years and conveyed an inspiring outlook for the future. He emphasized IEPFA’s dedication to fostering a secure and informed investment environment for every citizen, highlighting ongoing efforts in ease of doing business, efficient claim settlements, and the promotion of financial awareness. He passionately encouraged everyone to engage in IEPFA’s initiatives, stressing that true transformation begins at the grassroots level, and called on participants to collaborate with IEPFA in its mission to protect investor interests and enhance financial literacy nationwide.

Dr. Anil Kumar highlighted that the role of student bodies and universities is immense in spreading financial literacy to maximise financial well-being. The national financial inclusion mission of Government has brought about a sea change in ensuring financial well-being especially channelizing small savings into bank and small loans by way of government schemes/ programmes. A lot, however is still need to be achieved in augmentation of insurance penetration in the country, he stated.

Dr. Sumitra Chowdhury highlighted India’s significant progress in financial inclusion over the past decade and a half, emphasizing the need to continue the journey toward universal financial well-being. She acknowledged the crucial role of IEPFA and the IEPF Chair unit of NCAER in strategically educating the younger generation, empowering participants to further spread investor education within their communities. Dr. Chowdhury also addressed the growing challenges of financial security in the digital age, calling for enhanced efforts in financial education and investor protection to safeguard the interests of all citizens.

Mr. Varun Gupta delved into the criticalities of the capital market, emphasizing the inherent risks and opportunities that comes with investing in this dynamic environment. He discussed the importance of understanding market volatility, the impact of economic indicators, and the significance of diversification in mitigating risks. For the younger generation, Mr. Gupta advocated for early financial education, stressing that with the right knowledge and guidance, they can pursue capital market investments with confidence. By developing a disciplined approach to investing, young individuals can harness the potential of the markets to build wealth over time, contributing not only to their personal financial growth but also to the broader economic stability.

This workshop aimed to empower students with essential financial skills, preparing them to make informed decisions that will benefit their futures. By cultivating a generation of financially literate individuals, it will also contribute to building a more secure and economically resilient society.

DataTalk: A Conversation about Measuring Learning in India

NCAER’s National Data Innovation Center hosted the 7th edition of DataTalk. The conversation delved into the complexities of measuring children’s learning outcomes in India. With school enrollment rates having increased, the focus had shifted from merely getting children into schools to understanding what they were learning. However, this brought forth a challenging question: How do we accurately assess these learning outcomes?

The panel included experts from diverse backgrounds, including Akashi Kaul from the Central Square Foundation, Sridhar Rajgopalan, an Educational Entrepreneur, Abhijit Singh from the Stockholm School of Economics, and Wilima Wadhwa, the director of the ASER Centre. They discussed different methodologies, from school-based assessments like the National Achievement Survey to citizen-led evaluations such as the ASER Report, highlighting the importance of using data effectively to influence educational practice and policy.

During the discussion, we explored various approaches to educational assessments, the biases and challenges associated with them, and their implications for policy-making. The session aimed to provide a comprehensive understanding of the current state of educational assessments in India and how they could be improved to ensure all children receive quality education.

Boosting Financial Skills of Young Managers: Role of Financial Education as a Safety Network for Investor Protection

The Investor Education and Protection Fund Authority (IEPFA), Ministry of Corporate Affairs and the National Council of Applied Economic Research (NCAER), New Delhi, in collaboration with Jagan Institute of Management (JIMS), Rohini successfully conducted a comprehensive workshop aimed at “Boosting Financial Skills of Young Managers: Role of Financial Education as a Safety Network for Investor Protection” on Wednesday, July 31, 2024, at JIMS, Rohini, New Delhi.

The workshop was highly engaging with a gathering of over 400 participants and brought together prominent speakers including financial sector expert, Government representative and claim settlement expert, academician and Fintech expert. This initiative is a part of the continuous efforts by IEPFA and NCAER to empower the budding youth with the knowledge and skills necessary to navigate the financial landscape effectively and securely.

In her welcome address, Director Dr. Pooja Jain, expressed her delight and highly appreciated the collaborative effort for excellence in practical learning and stressed that such workshops provide real-world knowledge and skills that are crucial for every youth.

Dr Harvardhan Halve, Director General, JIMS lauded the first ever collaborative efforts between IEPFA, NCAER, and JIMS, Rohini, expressing enthusiasm for future joint initiatives aimed at enhancing financial literacy among youth.

Ms. Anita Shah Akella, CEO of IEPFA and Joint Secretary in the Ministry Corporate Affairs, in her message, conveyed that investor education and protection is on the national agenda and highlighted IEPFA’s efforts in creating a more informed, protected, and empowered community of investors. Through her message, she encouraged the students to actively participate, engage with IEPFA initiatives and take this opportunity to enhance their understanding and promote advocacy of investor rights and education. Ms Akella called for involvement of the youth in driving the progress IEPFA aims to achieve in safeguarding the interests of investors across the nation.

Dr. CS Mohapatra, through his highly interactive manner moderated the session and stated that in today’s fast-paced and complex financial landscape, equipping young budding managers with robust financial skills is essential for ensuring sound financial decision-making and fostering investor protection. Financial education plays a pivotal role in this context, serving as a safety network that empowers young professionals to navigate the intricacies of finance with confidence and prudence. By mastering these concepts, young managers can develop strategic financial plans, optimize resource allocation, and ensure sustainable growth.

He also highlighted that well-informed managers are better equipped to identify and mitigate potential financial risks, safeguarding the interests of investors. Education on regulatory frameworks, ethical practices, and market operations will help young managers adhere to best practices and avoid fraudulent activities. By understanding the nuances of different financial products, FinTech and their associated risks, they can diversify portfolios, optimize returns, and manage market volatility effectively, he stated. By promoting ethical financial practices, trust and credibility in financial markets can be built, ensuring that budding investors feel secure and confident in their investments.

The panel discussants — Lt. Col. Rajesh Kumar, General Manager, IEPFA, Ministry of Corporate Affairs, Government of India, Dr SD Vashishtha, Professor, Dean and Head, Faculty of Commerce and Management, MD University Rohtak, Mr Rakesh Sharma, Former Chief General Manager, PFRDA and Mr Harsha Bhowmik, Director- Digital Economy and Fintech, Ministry of Finance, Government of India discussed the importance of financial literacy rigorously and different initiatives taken by the Government as well as regulators, including IEPFA, in promoting financial literacy and financial inclusion.

Lt. Col. Rajesh Kumar, General Manager, IEPFA, Ministry of Corporate Affairs, Government of India emphasized IEPFA’s dedication to fostering a secure and informed investment environment for every citizen. He highlighted the organization’s ongoing efforts in ease of doing business, efficient claim settlements and the promotion of financial awareness, aiming for swift and lasting improvements in these areas. He also called on participants to collaborate with IEPFA in its mission to protect investor interests and enhance financial literacy nationwide, showcasing his strategic insight and commitment to the organization’s mandate.

Mr Rakesh Sharma stated that during the last decade public participation in financial markets has grown substantially. However, emerging market realities require that the prospective investors are protected against fraudulent activities. While Regulators are providing and disseminating necessary information through multimedia, such workshops are the best platform to educate the young and future leaders in various aspects of emerging market realities and how to guard against the unscrupulous elements.

Dr SD Vashishtha highlighted that such programmes are hugely fruitful for spreading financial education talent, ability and skills among the young managers and other interested people. Directly or indirectly, NCAER, IEPFA and MCA are contributing in making capital market more inclusive, savings conversion in investment which will further help in achieving targeted economic growth.

Mr Harsha Bhowmik emphasized that one of the critical enablers for the development and empowerment of people is technology-led economic transformation. India’s digital public infrastructure (DPI) – digital identity, fast payment system along with consent-based data sharing – has demonstrated how 1.4 billion individuals can access socio-economically important services in the field of finance, health, education, e-Governance, taxation, skills etc. He highlighted huge achievements including Aadhaar enrolments, Unified Payment Interface (UPI) transactions and DPI enabled direct benefit schemes.

India Policy Forum 2024

NCAER, India’s oldest and premier economic think tank, hosted its prestigious annual brainstorming session, India Policy Forum, during July 2-3, 2024 at its premises in New Delhi.

In the past two decades, the Forum has engaged in policy conversations that have contributed to a profound transformation of the Indian economy and society. Since its inception in 2004, the IPF has been a platform carrying forward NCAER’s mandate of ensuring quality, relevance, and impact. It has enabled honest conversations among world-class researchers using evidence-based research and has emerged over the years as a leader of ideas and a unique forum for driving policy.

Every year, IPF provides an intense scholarship-policymaker engagement through commissioned papers presented at the Conference, which are subsequently published in a journal. In addition, the IPF features lectures and panel discussions on key issues.

The 21th edition of the IPF was attended by a galaxy of eminent policymakers, economists, academics and researchers, who deliberated on four research papers, covering a range of diverse sectors and subjects, including the need for changing social safety nets, impact of presence of women in boards and top management on a firm’s performance, Punjab’s low growth trap and the opportunity cost of keeping high foreign exchange reserves. 

Agenda and Papers

The first paper presented at the IPF 2024 was on “Rethinking Social Safety Nets in a Changing Society”, authored by NCAER’s Prof Sonalde Desai and others. Using data from three rounds of the India Human Development Survey (IHDS), collected during 2004-5, 2011-12, and 2022-24, the paper shows that as the economy grows, households face considerable transition in and out of poverty. Historically, India’s approach to social safety nets has involved identifying the poor and providing them with priority access to various social protection programmes that include both in-kind and cash assistance.

But the churn in households’ economic circumstances makes it difficult to precisely identify and target the poor. It says traditional approaches to identifying the poor through provision of Below Poverty Line (BPL) cards, now dubbed priority cards, tend to focus on chronically poor households that usually come from poor regions or have enduring characteristics that predispose them to poverty (e.g. belonging to Scheduled Castes and Tribes). The IHDS data show that with a decline in chronic poverty, transient poverty begins to dominate. This suggests that our approach to social protection must pay greater attention to circumstances of life that push people into poverty rather than circumstances of birth associated with social identity or region of birth.  The paper discusses a variety of approaches to providing safety nets and examines the success of some key programs in reaching the poor.

The authors of the second paper titled “Female Leadership in Corporate India: Firm Performance and Culture” bring out how the ‘female director mandate’ under the Companies Act (2013) positively impacted the performance of the firms and their overall culture. Within a year, the percentage of listed firms without women on board plummeted from 53% to less than 10%. Despite this progress, India still lags in women’s participation in middle and senior management roles.

Interestingly, the paper finds that firms, on average, were appointing more women than mandated by the Act. At the same time, newly appointed women were younger and more educated than their male counterparts and their average directorship “stretch factor” increased significantly compared to men. Combining personnel-level data from NSE-listed firms with firm performance data, it finds that having at least one woman on board is associated with higher economic performance, financial stability, and lower financial risk. Additionally, using almost 400,000 employee reviews, it finds that higher share of women in board positions correlate positively with employee ratings and sentiment scores.

Another paper presented at the IPF 2024 was on “India’s Foreign Reserves and Global Risk”, which dwells on the opportunity cost of keeping higher reserves. India’s current reserves comfortably surpass conventional thresholds for adequacy used by the International Monetary Fund and others and is set to act as a bulwark against any adverse geo-strategic and geo-economic factors. Additions to reserves reduce the economy’s exposure to global financial risk.

The paper says the precautionary benefits of reserves could well increase as India becomes further integrated to international financial markets. Estimates of the costs of holding reserves give evidence that increases in the reserves to output ratio reduce the risk premium on reserves, so that the sovereign interest rate spread overestimates the marginal cost of reserves.

“Global financial turbulence and foreign monetary policy shocks are significant drivers of foreign capital outflows from India. Additional reserves can significantly reduce large outflows. The precautionary benefits of reserves could well increase as India becomes further integrated to international financial markets,” says the paper authored by Prof Chetan Ghate (Indian Statistical Institute and Institute of Economic Growth), Prof Kenneth Kletzer (University of California) and Mahima Yadav (Indian Statistical Institute).

“The empirical analysis of India’s external portfolio capital flows finds that reserves lower outflows in the event of global financial distress. Reserve holdings reduce the volatility of portfolio debt flows,” says the paper.

The fourth paper presented at the IPF 2024, was titled “Economic Development of Punjab: Prospects and Policies”. It says Punjab needs to shed its mono-culture farming, scrap subsidies like free power and water and reorient its industries and services to overcome slow economic growth, high debt, societal challenges like the drug menace and environmental degradation. The state’s over reliance on the Centre’s food procurement policy makes it heavily agricultural and, that too, in a narrow manner. It needs to diversify its cropping pattern beyond wheat and rice as a first step.

The authors- Prof Lakhwinder Singh (Institute of Human Development), Prof Nirvikar Singh (University of California), and Prof Prakarsh Singh (Plaksha University)—attribute the state’s high debt and strained public finances to lack of agricultural diversification and agro-processing industries besides high power and water subsidies. They find a “disconnect between the current situation and the state’s vision for the medium and long terms”.  “Lack of desirable employment and social problems such as drug and alcohol abuse all seem to stem from Punjab’s lock-in to the agricultural system created by the Green Revolution and an outdated national food procurement policy,” says the paper.

The authors say that “agriculture based on unprocessed food grains provides little opportunity for tax revenue” and the problem is compounded by huge power and water subsidies. Making a strong case against free power, they point to excessive depletion of groundwater which raises the spectre of desertification.

Arguing for support from the Centre for the state to make a farming switch, the paper says the procurement policy offering unlimited purchase of maize and pulses at MSP if farmers switch from paddy or wheat may not be enough for Punjab and “additional payments may be required, which could be justified politically as compensation for past contributions to national food security”.

In addition to the four papers, the India Policy Forum Conference of 2024 also featured lecture the TN Srinivasan Memorial Lecture on “Cracks in the System: How Geo-economic Fragmentation is Reshaping the World”, delivered by IMF Chief Economist Pierre-Olivier Gourinchas with NCAER Chairman Nandan Nilekani in the Chair. There were also panel discussions on issues like “Digitalisation and Development”; “States’ Fiscal Challenges”; “Employment Challenges in India and Beyond”; and “The Middle-Income Trap”.

The IPF 2024 concluded with a panel discussion on “India’s Economic Prospects in a Turbulent World” for which the main speaker was Martin Wolfe, Chief Economics Commentator, Financial Times. The panel included Barry Eichengreen (University of California), who is currently visiting Distinguished Professor at NCAER; Anantha Nageswaran, Chief Economic Advisor to Government of India; IMF Chief Economist Pierre-Olivier Gourinchas; and Swaminathan Aiyar, Editor, Emeritus, The Economic Times.

For any queries, please contact ipf@ncaer.org

    Get updates from NCAER