Stressing the need for investor awareness and responsibility, BSE Managing Director and CEO Sundararaman Ramamurthy on Thursday said that regulations alone cannot protect investors if they do not take adequate precautions while investing.
"You trade what you understand, and you understand what you trade if you don't do that, you have a problem," Ramamurthy said, urging investors to be vigilant and informed.
He criticised the tendency of investors to rely on hearsay rather than due diligence.
"You scan a vegetable before you buy it, but when you invest your life's earnings, you go by hearsay that's not how it should be," he said.
On regulatory expectations, the BSE chief remarked that there is a general perception that regulators are blamed when investors lose money, but when markets do well the same person praise their own knowledge.