Many people keep wondering why the ‘poor’ retail investor does not come to the equity markets. Well there are many reasons, but here are some of the reasons that I have heard. Some from people with over Rs. 150 crores networth and some from people who think equity markets are gambling dens.

1. Poor corporate governance: Contrary to popular belief many common people keep wondering why such high costs are incurred in corporate India. When the son of a HNI joined a big company, the first thing that hit him (and that house) was – why is corporate India so slipshod handling client money….

2. Poor Internal Rules: Insider trading by the Chairman right down to the chaprasi is so prevalent that children do not even KNOW that it is wrong..

3. The rules for the top management and the ones for the people at the bottom of the pyramid are different…

4. Do we all not know of sexual leeches being protected by their bosses because the boss thought the guy was more valuable? Also have we not seen innocent people threatened with sexual ‘complaints’ forcing them to retire?

5. Poor understanding of costing, cash flow and collection from debtors – too obvious for a young boy from a business family, but not to the over educated people in the business……

there may be more….but hey this is good, right?