Beware of the Risk Before Investing Says Former BSE Chairman, S Ravi

BSE Chairman Sethurathnam Ravi, the former chairman of BSE strongly believes that all potential investors should be vigilant in the face of any impending crisis.  Care must be taken when making an informed decision. In addition, the BSE Chairman emphasized on the issue that he has a firm vision to get BSE a 22-hour trading format.  Historically, it has been observed that some investors somehow overreact to positive developments.

Sethurathnam Ravi, Former BSE Chairman

Sethurathnam Ravi also said that there should be no transparency in the functional responsibilities of directors and independent directors.  In addition, he focused on the importance of the quality of the board.  In addition, the former BSE Chairman also believed in the fact that there should be an established forum for smooth interaction between investors and auditors.

Sethurathnam Ravi believed that the capital would somehow be limited in the current geopolitical situation and that organizations should look for the right capital.  He firmly believes in the fact that efficient management of capital will be the key to all corporates.  In addition, when Mr. Kothari introduced the issue of evaluating the company only every quarter, the former BSE Chairman effectively replied that it was a good decision as a quarterly review would be possible.S Ravi BSE went on to say that current globalization is being undermined along with trade agreements and that the goal of all other countries now is to protect their own company.

 

The following are some of the listed risks that investors should be aware of to avoid any kind of misfortune.

           1.      False news

Any kind of untrue information along with rumors will inevitably be ignored as the consequences of such ignorance will cause some financial loss to the world economy.  This needs to be managed accordingly, so trust and co-operation are built and maintained between the client and the co-organization.

2.      Risks of artificial intelligence

Undoubtedly, Artificial Intelligence has been labelled as one of the game-changing technologies in multiple areas.  But this does not mean that AI does not come with its risks, for example, the possibility of privacy invasion, the possibility of job loss due to automation, and the faculty data algorithmic bias.

 3.      Geopolitical surprises

All the geopolitical events that take place globally have some impact on the record of the world economy.  But any kind of ban or crisis that occurs in a particular country may be the result of some kind of small movement of market players to other unspecified areas, so the scenario here is that the dynamics of the economy are being reformed.

 4.      Investors and Junk Bonds:

When observing low-interest rates, investors prioritize getting the maximum return on junk bonds from the past, which is why they need to be careful.  Although high returns carry great risks, investors sometimes tend to forget this.  This is where junk bonds and the threat they raise become relevant.  Junk bonds are considered a loss-adjusted spread here.  Specifically, at present, the loss-adjusted spread is estimated to be approximately one per cent whereas the average annual historical loss is approximately adjusted to 3.5 per cent point spread 2.5 points.

Thus, the former BSEChairman, 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.