This presentation by Gyan Bhushan was made at the High-level Global Symposium on Financial Education: Promoting Long-term Savings and Investments in Korea which explored policies and good practices for supporting long-term savings and investments through financial education and financial consumer protection. Find out more at http://www.oecd.org/daf/fin/financial-education/globalsymposiumonfinancialeducationforlong-termsavingsandinvestments.htm

1. Long term savings
and investment for
particular sub
groups
Mr. Gyan Bhushan,
Executive Director
Securities and Exchange Board of India
High-level Global Symposium on Financial Education
26-27 February 2014, Seoul, Korea

2. Pre requisites for investor education
Best practices
Effective
Regulatory
environment
Quality – content
and delivery

3. Dedicated target groups and materials for focused approach
towards financial education
• School Children
• Young Investors
• Middle Income group
• Executives
• Home Makers ( Ladies)
• Retirement planning ( to be retired group )
•Self Help groups

4. Investor education – multipronged approach
• Investor Awareness Programs through Exchanges, depositories , trade bodies like
Association of Mutual Funds of India (AMFI) etc.
• Regional Seminars in tier II and tier III cities of the country through regional offices and
local offices of SEBI
• Visit to SEBI program
 Management institutes/ professional bodies like ICAI/ ICSI etc.
 Presentation on importance of long term savings and planning for future

5. Investor education – multipronged approach
• Research based approach
 districts based on savings accounts’ vs demat accounts’ penetration
 Further refining based on savings, value of deposits, value
 Classification of districts into HIGH / MEDIUM / LOW priority
 86 districts identified

6. Investor education – multipronged approach
• Regulation based approach
 Asset Management Companies can annually set apart at least 2 basis points
(0.02%) of daily net assets of the schemes within the maximum limit of total
expense ratio
 The districts identified has been shared with AMFI and distributed among various
AMCs

7. Inclusion of groups in the strategy
• National Strategy for Financial Education
 Financial Education form women
 Financial Education for the illiterate
Financial Education for the differently abled ( Persons with disabilities)
 Financial Education for other vulnerable groups like migrant workers etc.

8. New Pension Scheme - sustainable and efficient
voluntary defined contribution pension system in India
• Swavalambhan Yojana for all citizens of India (National Pension System-Lite (NPS-Lite)
 with effect from April 01, 2010
 to secure the future of the people who are economically disadvantaged and who
are not financially well to do
 Age group of 18- 60
 a) Tier-I pension account: You will contribute your savings for retirement into this
non-withdrawable account.
b) Tier-II savings account: This is simply a voluntary savings facility. You will be
free to withdraw your savings from this account whenever you wish.
 Government will contribute Rs. 1000 per year to each eligible NPS account.
Available only to persons who join the NPS with a minimum contribution of Rs.1,000
and maximum contribution of Rs. 12,000 per annum.

9. Thank You