KOLKATA, July 30: At a time when India is giving a push to build high-growth economy, robust industrial activity across sectors, create new jobs, a thriving capital market could be a game-changer. That was the consensus of the experts who spoke at the CII organized Financial Market Conclave here today. According to them, 1% saving in the corporate debt market segment will be a huge boost to the economy.

There is the Brexit, there is slowdown in China and there is falling demand all right, but big investments start happening only in times of “disturbances”, said Mr Navneet Munot, Chief Investment Officer, SBI Mutual Fund.

While Brexit does indicate anti-globalisation, India’s performance has been most impressive in the past 25 years, he said. “In a growth-hungry world, India is an oasis”, Mr Munot said in response to the statement made by Mr Tamal Bandyopadhyay, Adviser, Bandhan Bank Ltd, that this is perhaps the most bearish bull market ever witnessed.

Mr Ridham Desai, MD - Head of India Research, Morgan Stanley, agreed, saying India is the “best returning equity market in the world”, the second being Canada. Private bank and consumer goods are going to be the most bullish sectors in the next two years.

Mr Bharat Shah, Executive Director, ASK Investment Managers Pvt Ltd, underscored the need for greater circumspection, saying if one shows prudence it is hard to money in the long run.

Already India is the “shining star” among the global economies, as per CSO and IMF, said Ms Barnali Mukherjee, Chief General Manager (CGM) of Securities and Exchange Board of India (SEBI), at the inaugural session. She also cited the US Department of Agriculture’s macro-economic projections for 2030 as per which India will grow by $6.6 trillion and become the third largest economy in terms nominal GDP by 2030.

However, the SEBI CGM said the outcome of last month’s Brexit referendum, slowdown in China and the trend of negative interest rate are likely to impact the Indian economy in near term, for a country and economy today is inextricably linked with the world economy.

Disruptions may also happen in securities market, and this presents more of a challenge to the regulators, she said, adding that that the role of a regulatory body is to decipher what is happening in the market, assess the potential benefits for the investing public and protect their interests in the securities market.

A regulator has to make sense of the complexities in the market, lay down regulations in a simple manner which is to be understood in the way it is intended, she said. SEBI evolves its regulatory framework in line with the changing times, she said, adding that SEBI is a “listening organization” which makes its policies in consultation with the public at large.

Mr Chandra Sekhar Ghosh, Chairman, CII Eastern Region Economic Affairs, Finance & Taxation Sub-Committee and MD & CEO, Bandhan Bank Ltd, described Indian Capital Market as the “nerve centre” its economy. Not only does it help channelize resources for financing economic growth, it is considered one of the best governed and most efficient markets among the emerging economies.

“Some of the emerging trends in finance include where SEBI has proposed to easier norms for the REIT registration process and also allowed REITs to invest upto 20% in under construction projects which is likely to boost returns of overall investors. The various initiatives taken by the government, viz. Make in India, Startup India, Smart Cities have also been growth drivers for the financial sector,” Mr Ghosh said.

Mr Ravi Varanasi, CEO – NSE Academy and Group Head - Equity, Equity Derivatives, SME & EPR, National Stock Exchange (NSE), spoke of the role NSE has played in the growth of the capital market.

Mr D R Dogra, MD &CEO, CARE Ratings Ltd, said the factors which will determine a thriving corporate debt market are tax reforms, participation from insurance companies and pension funds, credit enhancements, measures for attracting retail investors and developing municipal bond market.

Mr Somasekhar Sundaresan, Partner, J. Sagar Associates, underscored need for a cost-benefit analysis and consulting with stakeholders while preparing draft laws.

Prof Anup K Sinha, however, raised doubts as to whether the GDP growth is the really indicator of real growth. Barring a few sectors such as automobile, IT, etc, the overall picture is not quite encouraging, he said, adding the sector under threat is agriculture. “It is a poverty-stricken sector which is hit by low productivity and fragmented land holding. Slow growth of the sector may affect India’s goal to achieve inclusive and sustainable growth.

Mr Manas Kumar Thakur, President, Institute of Cost Accountants of India, also underscored the need for efforts to achieve inclusive growth. Reaching a vast population of people in villages will help realize the target of financial inclusion.

Mr Bijay Murmuria, Chairman, CII Capital Market Core Committee & Director, Sumedha Fiscal Services Ltd, said some avenues for financing – FDI, Bank Credit, Corporate Bond Market, Equity Market and External Commercial Borrowings (ECBs) need to be further developed for meeting India’s huge infrastructure investment requirements, estimated at over $1 trillion.

At the inaugural session, a CII-CARE Ratings report titled “Growth Drivers for the Financial Sector” was unveiled.