Loss of Confidence of small investors

1. LOSS OF CONFIDENCE OF SMALL INVESTORS
Done by:
ROHINI.A
20BCC043

2. INVESTOR CONFIDENCE AFFECT STOCK PRICES TO RISE OR FALL:
Bull market – Stock prices are rising and investor confidence is growing. Its
often tied to economic recovery or an economic boom as well as investor
optimism.
Bear market – Stock prices are falling and investor confidence is fading. It
happens when an economy is in recession and unemployment is high with
rising prices.
FACTORS INFLUENCE INVESTOR CONFIDENCE INCLUDE:
o Company news and performance
o Industry performance
o Economic factors ( interest rates, inflation, economic outlook, change in
economic policy)

3. SEBI (Securities and Exchange Board of India) is the regulatory body that
oversees and regulates the securities market in India.
Loss of confidence of small investors in SEBI can occur for a variety of
reason such as
o Regulatory failure
Small investors may lose confidence in SEBI if they feel that the
regulatory body is not doing enough to protect their interests.
For example: Financial scam or fraud that affects small investors, they
may feel that SEBI did not do enough to prevent it.
o Lack of awareness
Small investors may also lose confidence in SEBI if they feel that
they are not adequately informed about the regulatory framework and how
it works.
This can lead to a lack of trust in SEBI’s ability to regulate the
securities market.

4. o Inefficiency
Small investors may lose confidence in SEBI if they feel that the
regulatory body is inefficient or ineffective in carrying out its duties.
For example: If there are delays in processing investor complaints or if
SEBI is slow to take action against fraudulent companies, small investors
may lose faith on the regulatory body.
o Insider trading
Small investors may also lose confidence in SEBI if they feel that
insider trading is rampant and not being adequately regulated.
This can lead to a sense of unfairness and a lack of trust in the
regulatory system.

5. In order to regain the confidence of small investors, SEBI needs to
take measures to address these concerns.
o Increasing transparency
o Improving communication with small investors
o Taking strict action against fraudulent companies and insider trading
If small investors lose confidence in SEBI, it can have several negative
consequences such as:
o Reduced participation
o Reduced investment
o Increased volatility

6. THANK YOU