Don’t enter markets just because your neighbour is making money: BSE chief Ramamurthy warns investors

Sundararaman Ramamurthy, Managing Director and CEO of BSE

Sundararaman Ramamurthy, Managing Director and CEO of BSE, on Saturday cautioned investors against entering financial markets without adequate knowledge or experience.

Speaking at the Moneycontrol Global Wealth Summit 2026, Ramamurthy said participation in markets should be guided by understanding and suitability rather than the influence of others’ profits.

“On suitability, there can be various methods of suitability,” he said, adding that factors such as an investor’s market experience, existing equity holdings and even passing an exam could help determine readiness to participate.

He stressed that individuals should not rush into trading simply because others appear to be making profits.

“People should not come in market just because their neighbour is making money,” he said.

Sundararaman Ramamurthy also raised concerns about inexperienced traders entering complex derivatives segments.

“Direct entry into options markets without market experience raises concerns,” he said.

According to him, regulators are keen to ensure that participation in the markets is responsible and informed rather than driven by risky behaviour.

“Regulators want consistent and informed participation, not ‘hero or zero’ trading,” he said.

He added that investment decisions should be based on knowledge and long-term understanding rather than imitation.

“Investing should be driven by understanding, not by following others’ profits,” he said.