Nowadays, handheld devices, particularly smartphones, have so many applications that a lot of trading and also back-office operations is happening on mobile phones. Just the way you buy your movie tickets, you can now trade, buy mutual funds, buy equities, see your statements and also pay by giving instructions to your bank. It is seamless the way you can operate through your mobile phone.
Availability of internet through mobiles has definitely empowered the investors to take timely decisions but technology has definitely not increased price volatility and risks. Volatility has increased due to geopolitical reasons and a lot of developmental happenings, and because people are becoming more hyperactive. It really has got nothing to do with technology itself.
Technology has its own challenges, but because everything is now online and you can check statements, bank balances, etc, so to that extent the chances of fraud and corruption have come down considerably. People get SMS alerts the moment a transaction is done, like your shares being transferred to another account. And, insider trading is a global phenomenon. Mobile technology has not increased or reduced the problem. Ferreting or transferring of company information is more of a human angle because at the end of the day people get information about a company from other people so I can’t blame mobile technology or, for that matter, any other technology, for it.
In fact, capital markets have become hugely efficient by providing all participants with quicker and more effective means of exchanging information, new products and instruments. Today, almost 10 per cent of retail investment volumes happen through mobile. I personally use my mobile to access information, price, research and various other applications. I find it very useful. If my mobile is off, I kind of feel breathless. It is a lifeline.
(As told to Lola Nayar)
Motilal Oswal is chairman and managing director of Motilal Oswal Financial Services Ltd
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