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Revitalising the Bombay Stock Exchange Sundararaman Ramamurthy’s Vision for India’s Future

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Revitalising the Bombay Stock Exchange Sundararaman Ramamurthy’s Vision for India’s Future

In the latest episode of the Simple Hai! show, veteran finance journalist Vivek Law hosted Sundararaman Ramamurthy, Managing Director and CEO of the Bombay Stock Exchange BSE, offering a rare glimpse into the mind of a man Law describes as an “architect of the modern stock market”. As BSE celebrates its 150th anniversary, Ramamurthy shared profound insights into market evolution, investor protection and his vision for India’s financial future, emphasising that “Old is not necessarily always gold”.

Democratising Access and Information

Ramamurthy lauded the significant transformation in India’s stock market over the past three decades, particularly the democratisation of access and information. He highlighted how technology has dissolved geographical barriers, ensuring that an individual in Mumbai, the North East, or Kashmir now has the same speed and access to information as anyone else. This is in stark contrast to earlier times when regional stock exchanges, like Chennai or Vadodara, would only offer stocks listed in their respective regions. Today, the entire nation operates on a level playing field in terms of market access and information.

Combating Uninformed Trading and Greed

Despite the advancements, a significant concern remains the prevalence of uninformed trading. Ramamurthy cited a SEBI report from the COVID 19 pandemic period, revealing that nine out of 10 people engaging in trading, especially in Futures and Options F and O, lost money. He cautioned against the “greed” that drives individuals to seek quick riches, drawing an analogy: “If you plant a mango tree, mangoes don’t appear the next day; it takes five years. Everything takes time”. Similarly, he stressed that investments, particularly in an index fund, require patience, typically three to four years, to yield benefits.

To counter this, BSE and SEBI are intensifying efforts to boost investor awareness and knowledge. BSE alone conducts approximately 15,000 investor awareness programs annually, reaching around 8 lakh people. These initiatives include educational videos and street plays during events like World Investor Week, all aimed at ensuring investor safety.

The Persistent Challenge of a Level Playing Field

Ramamurthy acknowledged that achieving a truly level playing field remains a work in progress. Since joining BSE two and a half years ago, he has identified several disparities:

Margin Release Issues: Some mobile applications used by retail traders still charge margins on both sides when an investor buys on NSE and sells on BSE, despite interoperability that should release the margin for the broker.

Exchange Selection Restrictions: Certain apps force investors to choose a single exchange for life, or to toggle between exchanges daily, limiting their flexibility.

Information Display Bias: Many applications prioritise one exchange’s stock symbols, making it difficult for investors to compare prices across exchanges to find the best deal.

KYC Duplication: Legally, prior to August 2024, an investor needed to complete separate KYC procedures with the same broker for different exchanges even for the same equity market. This unnecessary requirement has since been changed.

Common Contract Note: Discussions are ongoing to introduce a common contract note, further simplifying processes.

Ramamurthy confirmed that these issues are being addressed with brokers, albeit slowly, to prevent losses for their own clients.

Evolving Investors in a Digital Age

The market has transformed dramatically from 30 years ago when investors physically visited stock exchange buildings or broker offices to place orders. Today, the market is literally “in the customer’s pocket”, accessible with a single touch, with instant bank transfers and digital depository services. Despite this technological leap, Ramamurthy expressed regret that many investors still rely on “hearsay” rather than informed decision making.

Unlocking the Potential of SMEs

A key mission for BSE is to significantly increase the listing of Small and Medium Enterprises SMEs. India boasts over six crore SMEs, contributing substantially to exports, GDP and employment generation, yet only around a thousand SMEs are listed across both exchanges. Ramamurthy envisions this number reaching at least 6,000 in the next decade.

He explained that while SMEs are “Subject Matter Experts” in their businesses, they often lack knowledge in corporate governance and finance necessary for listing. The process of bringing them to market is akin to finding “diamonds” amidst many “stones”. To prevent bad companies from tarnishing the market’s reputation, the BSE is tightening regulations, refining its due diligence, and crucially, leveraging technology.

BSE has developed an AI system, combining Large Language Models LLM and Generative AI, to process Draft Red Herring Prospectus DRHP documents from SMEs. This system generates four types of reports in just 20 to 30 minutes, a task that previously took a human analyst three to four weeks. These reports include:

  1. SEBI compliance checklist.
  2. BSE’s internal checklist.
  3. A list of further questions for the company, based on details like Offer for Sale OFS percentage, promoter changes, preferential issues, and related party transactions.
  4. Public domain checks for any past actions by enforcement agencies ED, CBI or reports of fraud related to the company or its promoters.

This expedited process is crucial for bringing more SMEs to the market, which Ramamurthy believes is “mandatory” for India to achieve a 50 trillion dollar market capitalisation as part of its Viksit Bharat 2047 vision.

Global Competition and Customer Delight

Ramamurthy emphasised that market competition is no longer just national; it’s global. He cited the example of Dubai, where 4.32 million Indians reside, and a significant portion of their earnings, 85 percent after repatriation to India, is invested elsewhere, not necessarily in India. This highlights the need for Indian exchanges to be globally competitive to attract these investments.

BSE’s strategy and tagline for the coming years is “Customer Delight” Prasannit Grahak. Ramamurthy broadly defines “customer” to include not just brokers and their investors, but also regulators, the board, and even employees. He believes that “if you want to survive, you have to keep pace with the world” by understanding and delivering what customers need within the bounds of law. BSE’s vision extends to attracting global investors to India and facilitating Indian residents’ trading in foreign products through BSE.

A Journey Fuelled by Selfless Purpose

Sharing insights from his middle class upbringing in Tamil Nadu, Ramamurthy recalled weekends spent queuing for rationed sugar. His career path saw him transition from an Indian Overseas Bank clerk to a Probationary Officer at the State Bank of India, then joining IDBI, the institution that birthed NSE. Despite a higher salary at SBI, he chose IDBI, drawn by the idea of developmental finance and contributing to nation building. After a successful tenure at NSE, and then 8 years as Country CEO for Bank of America, he took on the leadership of BSE, viewing it as a “God given opportunity” to bring about necessary change, free from personal gain or ambition.

Ramamurthy expressed his commitment to making BSE vibrant and his hope that his story will inspire young people in India to work diligently for the betterment of society.

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Gold Loans, MSME Credit and Digital Lending: Rakesh Singh on India’s Changing Borrowing Habits

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Gold Loans, MSME Credit and Digital Lending: Rakesh Singh on India’s Changing Borrowing Habits

India’s lending landscape is evolving as technology makes credit more accessible and businesses look for faster ways to raise funds. From households using gold as collateral to small businesses seeking formal credit, borrowing is becoming an important part of how individuals and enterprises manage their financial needs.

In a conversation with Vivek Law on The Simple Hai! Show, Rakesh Singh, Executive Director and CEO (NBFC) at Aditya Birla Capital, discussed the growth of gold loans, the credit gap faced by micro, small and medium enterprises (MSMEs), the role of digital platforms in lending, and why responsible borrowing must remain a priority.

Gold Loans: Putting Household Savings to Productive Use

Gold has traditionally been an important form of savings for Indian households. Singh noted that Indian families collectively hold an estimated $5 trillion worth of gold, presenting a significant opportunity for the gold loan market.

According to Singh, the gold loan industry has grown considerably over the past two to three years, partly because rising gold prices have increased the value of the collateral borrowers can offer. He cited an industry size of around ₹19 lakh crore, with NBFCs accounting for approximately ₹4 lakh crore and banks making up the remainder.

Gold loans can help people access funds without selling family jewellery. Singh explained that borrowers often use these loans to invest in their businesses or pay for their children’s education, making them a source of funds for specific financial needs rather than everyday consumption.

He also highlighted the potential in semi-urban and rural areas, as well as Tier 3 and Tier 4 markets, where access to such lending products can expand further.

Trust Is Key to the Gold Loan Business

Borrowing against gold involves more than a financial transaction. For many families, jewellery carries emotional and generational value, making trust an essential part of the process.

Singh said established brands can help customers feel more confident about pledging their gold. Transparency, responsible handling of jewellery and a customer-first approach are important to building that confidence.

He also pointed to a geographical shift in the market. While gold lending was previously concentrated in southern states, Singh said growth is increasingly visible in northern, eastern and central India, including markets such as Delhi-NCR, Uttar Pradesh and Rajasthan.

For Aditya Birla Capital, entering this segment is an opportunity to expand its lending presence across the country while focusing on customer trust and responsible growth.

MSMEs Continue to Face a Credit Gap

Access to formal credit remains a challenge for many small businesses. Singh observed that some MSMEs continue to borrow from friends, family or local sources, sometimes at significantly higher rates, because they cannot easily access suitable formal financing.

He said banks, NBFCs and fintech companies each have a role to play in addressing this gap. Rather than simply competing with one another, these institutions need to reach different customer segments and offer products suited to their requirements.

Speed is another important factor. For a small business, delays in accessing funds can affect day-to-day operations and growth plans. Lenders therefore need to combine appropriate credit assessment with efficient processes.

Singh also shared that approximately 57–58% of Aditya Birla Capital’s loan book, which he referred to as around ₹1.70 lakh crore during the discussion, was directed towards MSMEs.

How Digital Platforms Are Changing Lending

Digital infrastructure is making it easier for lenders to assess small businesses that may previously have had limited access to formal credit.

Singh highlighted the role of digital payments, Aadhaar-based verification, PAN linkages, GST records and credit bureau information in helping lenders understand customers and their financial activity. As more businesses use digital payment systems, lenders can gain a clearer picture of their transactions and banking behaviour.

Aditya Birla Capital developed its Udyog Plus digital platform to serve MSMEs. Singh said the platform had close to 2.4 million registered businesses at the time of the conversation.

Through digital processes, some smaller loans can be assessed, approved and disbursed within minutes. Larger or more complex applications may still require intervention from branches and credit managers.

Digital platforms can also help businesses access services beyond financing, including support related to accounting and human resources.

Digital Lending Must Be Matched With Responsible Borrowing

Technology has made it easier for customers to access credit, including through digital platforms and financing options offered during online purchases. However, Singh cautioned that easier access to loans also brings risks.

When customers take multiple loans from different lenders, their overall debt burden can rise. Singh stressed that lenders need to monitor a borrower’s leverage not just when approving a loan, but also after the money has been disbursed.

For borrowers, understanding repayment capacity is equally important. People should assess how much they can repay, when their income is likely to arrive and whether the repayment schedule suits their financial circumstances. This can be particularly important for those with irregular or seasonal earnings.

Singh also emphasised the importance of awareness around credit scores and repayment discipline. Delayed payments can affect a borrower’s credit record and future access to loans.

The Future of Lending Depends on Access and Awareness

India’s growing economy, expanding digital infrastructure and changing borrowing needs are creating opportunities for lenders. Gold loans can help households unlock funds against an existing asset, while better access to formal credit can support small businesses.

But greater access alone is not enough. As Singh explained, lenders must understand the customer segments they serve, manage risks carefully and ensure that credit reaches borrowers whose needs and repayment capacity align with the product.

For borrowers, the message is equally clear: a loan should serve a financial purpose, and taking one should always involve a clear understanding of its cost and repayment obligations.

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Simple Hai! @ 100: Celebrating a Milestone in Making Finance Simple

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Simple Hai! @ 100: Celebrating a Milestone in Making Finance Simple

From financial awareness to financial confidence, Simple Hai! marks 100 episodes with a celebration of conversations, learning and the people behind the journey. A hundred episodes is more than a number. For Simple Hai!, it represents years of conversations aimed at making money easier to understand. The milestone was celebrated with the Simple Hai! @ 100 event, bringing together the people who have shaped, supported and powered the show. The celebration reflected on the journey of building a financial education platform around one simple idea: finance does not have to feel complicated.

From Awareness To Confidence

Over its journey, Simple Hai! has explored subjects ranging from investing and wealth creation to retirement planning and everyday money decisions.

The show’s conversations have also reflected how India’s financial landscape has changed.

Mutual funds, investing and personal finance have become more accessible to younger audiences. Digital platforms have further changed how people learn about money.

The show has reached audiences beyond India’s major metros, with viewers across more than 15 countries.

It has also crossed 38 million impressions and nearly 5 million views, reflecting the growing demand for accessible financial education.

The People Behind Simple Hai!

The celebration also recognised the team working behind the camera.

Co-founders Aparna Joshi, Harish Patil and Deepak Karna joined Law during the event, highlighting the collaborative effort behind the platform.

The wider OneNative Studio team was also brought on stage as part of the celebration.

That moment reinforced an important part of the show’s journey.

A finance platform may have a host at the centre, but building 100 episodes requires researchers, producers, editors, designers and everyone working behind the scenes.

A Conversation With Ashishkumar Chauhan

Ashishkumar Chauhan, MD and CEO of the National Stock Exchange, also joined the celebrations through a conversation and message recognising the milestone.

He highlighted the role of financial media in making investment conversations more accessible.

The discussion also looked at how Indian investors have changed over the years.

Law recalled a time when mutual funds were far less familiar to ordinary investors. Today, financial products and investment information are significantly more accessible.

The challenge has consequently shifted from access to understanding.

The Philosophy Behind The Show

One recurring idea from the celebration was the importance of knowledge.

A story from India’s financial markets captured that philosophy particularly well.

Veteran brokers once suggested that while people may worship Lakshmi, the goddess of wealth, they should remember Saraswati, the goddess of knowledge, every day.

For Simple Hai!, that idea fits the journey.

Financial confidence cannot come only from having access to products. It also requires knowledge, discipline and the confidence to ask questions.

What’s Next For Simple Hai!?

Reaching 100 episodes is being treated as a milestone rather than a finish line.

The platform plans to explore artificial intelligence and other technologies to make financial education more accessible.

The newly launched Simple Hai! website will also bring together its podcasts and financial education content.

As the show enters its next phase, its central promise remains unchanged.

Make finance simpler. Make financial conversations more accessible. And help more Indians become confident with their money.

For Simple Hai!, 100 episodes are therefore less about looking back and more about asking what comes next.

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Digital Gold Can Unlock India’s $5 Trillion Opportunity, Mahendra Luniya

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Digital Gold Can Unlock India's $5 Trillion Opportunity, Mahendra Luniya

Gold has long been India’s preferred store of wealth. It is bought during festivals, gifted at weddings and passed down through generations. But while Indian households continue to accumulate the precious metal, much of it remains locked away in lockers, generating little economic value.

According to Mahendra Luniya, Founder Chairman, Vighnaharta Gold Ltd., this vast stockpile of household gold represents one of India’s biggest untapped economic opportunities. Speaking on the Simple Hai! podcast hosted by veteran business journalist Vivek Law, Luniya argued that digitising gold ownership and bringing idle gold into the formal financial system could unlock liquidity, reduce import dependence and reshape how Indians invest in the precious metal.

Gold Goes Digital

Luniya compared the evolution of gold ownership to the transformation witnessed in equity markets and payments over the last two decades.

“Shares moved from paper certificates to demat accounts. Cash moved from wallets to UPI. Gold is now following the same path,” he said.

With prices touching around ₹1.5 lakh per 10 grams, purchasing physical gold has become increasingly expensive for many households. Digital platforms, however, allow investors to start with significantly smaller amounts.

“You can now buy gold for as little as ₹150,” Luniya said, adding that digital ownership makes regular investing possible, much like a systematic investment plan (SIP). Instead of waiting to accumulate enough money to buy jewellery or coins, investors can gradually build their gold holdings over time.

From Investment to Jewellery

While digital gold is often viewed as a substitute for physical ownership, Luniya believes it actually complements traditional buying habits.

He explained that investors can accumulate gold digitally over several years and eventually convert those holdings into jewellery whenever required, particularly for weddings or family occasions.

A key innovation enabling this transition is the Electronic Gold Receipt (EGR), an exchange-traded instrument backed by physical gold stored in regulated vaults. According to Luniya, EGRs could eventually allow investors to transfer gold directly from their demat account to a jeweller, paying only the making charges or any additional quantity required.

“This makes gold accumulation far more efficient while still allowing families to eventually own physical jewellery,” he said.

Trust Through Standardisation

Luniya also highlighted the impact of mandatory hallmarking in improving consumer confidence.

Earlier, buyers often had little certainty about the purity of jewellery, with many discovering years later that ornaments sold as 22-carat gold were of lower quality. Today, BIS hallmarking and digital verification have standardised quality, making transactions significantly more transparent.

He believes this increased trust provides the foundation for wider adoption of digital gold ownership.

Unlocking a Sleeping Asset

According to Luniya, India’s privately held gold is effectively a “sleeping asset.”

While households continue buying gold every year, the country also imports hundreds of tonnes annually, placing pressure on foreign exchange reserves.

“If even a small portion of the gold already lying in Indian homes becomes financially productive, it can release enormous liquidity into the economy,” he said.

That liquidity, he argued, could support businesses, improve access to credit and reduce dependence on fresh imports.

Rather than encouraging people to stop buying gold, Luniya advocates changing how it is accumulated and utilised.

Lessons From History

During the discussion, Luniya referred to historical examples to underline gold’s strategic importance.

He cited the United States’ gold policies during the Great Depression and India’s decision to pledge gold reserves during the 1991 balance-of-payments crisis as examples of how gold has served as a critical financial asset during periods of economic stress.

His broader point was that gold should not merely remain locked away but should be capable of supporting economic activity whenever required.

Why Gold Remains Relevant

The conversation also touched upon the resurgence of gold globally.

Luniya noted that central banks across the world have increased their gold purchases amid geopolitical tensions, rising sovereign debt and efforts to diversify reserves beyond the US dollar.

Against this backdrop, he believes India’s own household gold reserves can play a far greater role in strengthening the country’s financial resilience.

Among the various investment avenues available today—including Gold ETFs, digital gold and other market-linked products—he identified Electronic Gold Receipts as one of the most promising developments because they combine the security of physical gold with the convenience of electronic ownership.

The Road Ahead

Luniya believes younger investors are already leading the shift towards digital assets.

Unlike previous generations, who primarily associated gold with jewellery, today’s investors are increasingly comfortable owning financial assets electronically while retaining the flexibility to convert them into physical form whenever required.

For him, the future of gold lies not in replacing tradition but in modernising it.

Families will continue buying jewellery for emotional and cultural reasons, but the process of saving and investing in gold is likely to become increasingly digital. If that transition gathers pace, Luniya believes India’s vast household gold reserves could evolve from being a passive store of wealth into a productive financial asset—one that benefits not only individual investors but the broader economy as well.

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