Friday 4 March 2011

THIS ONE IS DEDICATED TO YOU, ME AND MILLIONS OF INVESTORS LIKE US

As someone who knows something about the way our financial services industry operates-though not the way so many experts and pundits project themselves on TV screens – I have often wondered why is it that people like you and me never get to know about things before it is too late. I mean, retail investors often wonder-like their counterparts in Hindi movies – about how much more tension and torture they have to undergo before they are saved. Like in Hindi movies, retail investors like you and me get comfort only after the robbery has been done and some one heroic has bested the villains. And then the police arrive-like the Securities Exchange Board of India (SEBI) arrives-after the deed has been done, people have been harmed and faith in institutions has been shaken. As a professional who has been trying to understand-forget master-this industry, I know how difficult it is for me even to point out these things. And yet, we have all realised that it is time to fill up a significant gap. The gap, in my mind, is very clear: most media outlets tend to glorify the people who are movers and shakers in the financial services industry. Today, you will have a story about how this ‘bullish’ stockbroker is going to transform the market. Tomorrow, you just might read or hear about a ‘bear’ who has equally compelling reasons. And then the other day, you will hear about how the FIIs have saved Dalal Street from ruin by buying at a strategic time!. If you believe all that, then this modest and yet ambitious offering called BFM is not for you.

As far as I am concerned, BFM is about investors like you and me who expect some level of honesty and transparency from players in the financial services industry. I know, we will often fail to get that kind of honesty. Then, we would bring to you stories like the cover feature this on Insider Trading which analyses how retail investors might be getting perennially fooled by pundits, brokers and corporate leaders. I am sure we will also do stories of the other kind when corporate houses, companies, investment banks and consultancies reveal proof of transparency and clean practices. In fact, I am still waiting for the day when I can go through the balance sheet of an Indian company and claim with pride that it can defy that detergent ad tag line that says: Kyoonki Daag Acche Hote Hain...

This being the first issue of BFM, we are also not going to shock you-the retail investor-with more horror stories of what happens in Dalal Street and beyond. Like good news, even disturbing news should come in small doses! But we do promise you this much, our research and editorial team will always be striving to keep you the retail investor in mind when they are pursuing leads and stories. In the process, we are willing to sacrifice advertisers and antagonise regulatory bodies like the SEBI-and even their real masters sitting in North Block. Mind you, we will often praise them too.

It would be wonderful to get your feedback on this issue-acclaim and calumny are both welcome. It will help us become a more efficient interface between you and the Indian version of the Masters of the Universe!