The BSE Chairman, Sethurathnam Ravi greatly believes in the fact that all the potential investors should be vigilant enough to tackle any upcoming problems. Vigilance should be carefully exercised when it comes to making an informed decision. Furthermore, the BSE Chairman also said stressed on the topic that he has a firm vision for the BSE so that it can have a 22-hour trading format. And according to history, it has been observed that some investors somehow react to the positive development exaggeratedly.
Sethurathnam Ravi on valid governance
Sethurathnam Ravi said that there should be no transparency when it comes to the functional duties of both the directors as well as the independent directors. Besides this, he also focused on the importance of the quality of the board. Additionally, the BSE Chairman also believed in the fact that an established forum should be there so that a smooth interaction between the investors and the auditors can carry out.
Following this, Sethurathnam Ravi also believed that the capital will somehow turn out to be constrained in the existed geo-political situation and organizations will need to search for the correct kind of capital. He is a firm believer in the fact that efficient management of the capital will act as the key for all the corporate. Apart from this, when Mr. Kothari coined the topic of the company being judged exclusively by the quarterly results, the BSE Chairman effectively replied that it is a good decision as through this the quarter review will be possible. He then continued stating that the current de-globalization along with the trade pacts are being broken and these are done as the motive of every other country now is solely to protect their own company.
Risks investors should be aware of The following are some of the listed risks that the investors should be aware of to avoid any kind of misfortune:-
• Fake news
It is inevitable to ignore any kind of information that is not true along with the rumor as the results of such ignorance will cost some monetary losses to the world economy. This has to respectively tackle so that the trust is built and hence maintained between the customers and the fellow organization.
• Potential artificial intelligence risks
Undoubtedly, artificial intelligence has been labeled as one of the game-changing technology in multiple sectors. But this doesn’t mean that AI doesn’t come with its very own risks, for instance, there are privacy invasion chances, chances of losing the job because of automation, faculty data causing algorithmic bias.
• The geopolitical surprises
All the geopolitical events that take place globally create some sense of impact on the world economy record. But, the scene here is that any kind of prohibition or crisis that takes place in a certain country might as well be a result of any kind of slight movement of the market players to the other unspecified regions which hence modify the dynamics in the economy of the world.
Investors and Junk Bonds
When low-interest rates are observed, it merely gave the investors an upper hand in reaching for the maximum number of yields of junk bonds since the past which is why they must be careful. Given that the higher yields merely come with great risks but investors sometimes tend to forget this. This is where the junk bonds and the threat they pose come into play.
Junk bonds are here calculated as the loss-adjusted spread. Specifically, in current times the loss-adjusted spread is termed to be somewhere around one percent where the 3.5 percentage point spread is somehow adjusted for the 2.5 percentage points when calculated in the average annual historical losses.
Thus, the BSE Chairman, S. Ravi also emphasizes the fact that the investors should always be on a careful look out of the company’s Environmental, Social, and Governance compliance which they should later report so that the right stock where they can invest is discovered. Given that, we have an ever-changing world, the investors need to implement all they have learned in the past years and maintain vigilance towards all the potential emerging risks besides being more than just judicious in the distribution of the investments in the wide crew of stocks that are depended upon selective parameters.