This document summarizes a study on small investors' grievances and redressal mechanisms in the Indian capital market. It finds that while reforms have been made, many small investors still face difficulties. It analyzes grievances in the primary market (e.g. non-receipt of shares), secondary market (e.g. price manipulation), and against brokers. The Securities and Exchange Board of India (SEBI) now plays a key role in regulation and handling investor complaints. While the number of complaints SEBI receives has decreased over time, it still did not resolve all issues in a timely manner. The document concludes more must be done to protect small investors and improve their confidence in the capital market to promote further economic growth.
This document discusses investor protection and the role of regulators in India. It outlines the different types of investors that require protection, including equity investors, large institutions, foreigners, debenture holders, and small investors. It also describes the various laws and compliance measures related to investor protection in company law, securities law, and other regulations. Finally, it discusses the agencies involved in investor protection like SEBI, RBI, and others, and mechanisms for grievance redressal and securities market awareness campaigns.
This document discusses investor protection and the role of regulators in India. It covers the concepts of investor protection, the various types of investors, and the laws and agencies involved in protecting investors, including SEBI, RBI, and various government ministries and committees. It also outlines the compliances required by companies, methods for investor grievance redressal, and securities market awareness campaigns to educate investors. In conclusion, the key roles of regulatory bodies are protecting investor interests, promoting transparency, and maintaining confidence in the stock market through coordinated efforts and investor education.
This document discusses common problems faced by investors and methods for redressal. It outlines objectives of investment like returns and risks. Common complaints by investors are listed against companies, brokers, and depository participants regarding issues like delayed transfers, non-payment of dividends, and high fees. Redressal methods are provided, including a new section in the Companies Act to protect small investors and punish non-compliance. The SEBI has also introduced a guide for investors. Problems can be reported to relevant authorities like SEBI, registrars, or stock exchanges depending on the issue and type of security. In conclusion, investor problems regarding shares can be resolved through different redressal cells.
The Securities and Exchange Board of India (SEBI) was established in 1988 as an interim administrative body to regulate and develop the securities market. It was given a statutory status in 1992 through an act of Parliament. SEBI was established to address various malpractices in the capital market such as non-adherence to regulations, delay in share delivery, and lack of investor protection. SEBI aims to protect investors, regulate stock exchanges and intermediaries, and ensure orderly development of the securities market. Some key functions of SEBI include registration of market players, prohibiting unfair trade practices, and conducting investor education.
The document provides information about the Security Exchange Board of India (SEBI). It begins with an introduction to SEBI's mandate to protect investor interests and regulate securities markets. It then describes SEBI's organizational structure and departments that regulate different entities like stock exchanges, market intermediaries, and investment vehicles. The summary concludes with an overview of SEBI's role in addressing investor complaints.
This document summarizes a project report on online trading. It discusses how online trading allows investors to place orders over the internet through a broker. It must be ensured that sufficient funds and securities are available in the investor's account. Contract notes detailing trades must be issued within 24 hours. The objectives of the study are to understand how the stock market and investment patterns work. A literature review and methodology involving a survey of 100 respondents is presented. Charts show most invest with India Bulls and trade intraday. Many see market uncertainty as a challenge but an opportunity. Lack of knowledge and unsatisfactory broker services are key problems.
The document discusses investors' education and grievance redressal mechanisms at the Ludhiana Stock Exchange (LSE) in India. It provides details about LSE such as its establishment, vision, mission, organizational structure, subsidiaries, departments, and board of directors. It also discusses investors' rights and responsibilities, types of grievances faced, and the procedures for filing complaints. Statistical data from a survey of 100 LSE investors is presented on their awareness of rights, preferred education methods, problems faced, complaint filing actions, and satisfaction with the redressal process. Suggestions to improve the process are provided.
The document provides details about the Securities and Exchange Board of India (SEBI). It discusses that SEBI was constituted in 1988 as the regulator of the securities market in India. Its key objectives are to protect investors, regulate the securities market, and ensure fair practices. SEBI has regulatory functions like registration and regulation of intermediaries as well as developmental functions like promoting investor education. It has the power to regulate stock exchanges, inspect documents, and grant registrations. SEBI aims to develop the securities market and protect the interests of investors in India.
This document discusses investor protection and the role of regulators in India. It outlines the different types of investors that require protection, including equity investors, large institutions, foreigners, debenture holders, and small investors. It also describes the various laws and compliance measures related to investor protection in company law, securities law, and other regulations. Finally, it discusses the agencies involved in investor protection like SEBI, RBI, and others, and mechanisms for grievance redressal and securities market awareness campaigns.
This document discusses investor protection and the role of regulators in India. It covers the concepts of investor protection, the various types of investors, and the laws and agencies involved in protecting investors, including SEBI, RBI, and various government ministries and committees. It also outlines the compliances required by companies, methods for investor grievance redressal, and securities market awareness campaigns to educate investors. In conclusion, the key roles of regulatory bodies are protecting investor interests, promoting transparency, and maintaining confidence in the stock market through coordinated efforts and investor education.
This document discusses common problems faced by investors and methods for redressal. It outlines objectives of investment like returns and risks. Common complaints by investors are listed against companies, brokers, and depository participants regarding issues like delayed transfers, non-payment of dividends, and high fees. Redressal methods are provided, including a new section in the Companies Act to protect small investors and punish non-compliance. The SEBI has also introduced a guide for investors. Problems can be reported to relevant authorities like SEBI, registrars, or stock exchanges depending on the issue and type of security. In conclusion, investor problems regarding shares can be resolved through different redressal cells.
The Securities and Exchange Board of India (SEBI) was established in 1988 as an interim administrative body to regulate and develop the securities market. It was given a statutory status in 1992 through an act of Parliament. SEBI was established to address various malpractices in the capital market such as non-adherence to regulations, delay in share delivery, and lack of investor protection. SEBI aims to protect investors, regulate stock exchanges and intermediaries, and ensure orderly development of the securities market. Some key functions of SEBI include registration of market players, prohibiting unfair trade practices, and conducting investor education.
The document provides information about the Security Exchange Board of India (SEBI). It begins with an introduction to SEBI's mandate to protect investor interests and regulate securities markets. It then describes SEBI's organizational structure and departments that regulate different entities like stock exchanges, market intermediaries, and investment vehicles. The summary concludes with an overview of SEBI's role in addressing investor complaints.
This document summarizes a project report on online trading. It discusses how online trading allows investors to place orders over the internet through a broker. It must be ensured that sufficient funds and securities are available in the investor's account. Contract notes detailing trades must be issued within 24 hours. The objectives of the study are to understand how the stock market and investment patterns work. A literature review and methodology involving a survey of 100 respondents is presented. Charts show most invest with India Bulls and trade intraday. Many see market uncertainty as a challenge but an opportunity. Lack of knowledge and unsatisfactory broker services are key problems.
The document discusses investors' education and grievance redressal mechanisms at the Ludhiana Stock Exchange (LSE) in India. It provides details about LSE such as its establishment, vision, mission, organizational structure, subsidiaries, departments, and board of directors. It also discusses investors' rights and responsibilities, types of grievances faced, and the procedures for filing complaints. Statistical data from a survey of 100 LSE investors is presented on their awareness of rights, preferred education methods, problems faced, complaint filing actions, and satisfaction with the redressal process. Suggestions to improve the process are provided.
The document provides details about the Securities and Exchange Board of India (SEBI). It discusses that SEBI was constituted in 1988 as the regulator of the securities market in India. Its key objectives are to protect investors, regulate the securities market, and ensure fair practices. SEBI has regulatory functions like registration and regulation of intermediaries as well as developmental functions like promoting investor education. It has the power to regulate stock exchanges, inspect documents, and grant registrations. SEBI aims to develop the securities market and protect the interests of investors in India.
SEBI (Securities and Exchange Board of India) is India's securities market regulator that was established in 1988 to protect investors, develop and regulate the securities market. SEBI is headed by a board and has various departments that work to achieve its objectives of regulating market intermediaries, promoting investor education, and enforcing prohibitions on unfair trading practices. SEBI also works to facilitate investor grievance redressal and promote an efficient, fair and transparent securities market in India.
This document provides an overview of key concepts related to investors, including definitions of investment and an investor. It outlines different types of investors such as retail and institutional investors. The document also discusses investor rights and obligations, legislations governing capital markets in India and internationally, and various compliances and protections that are in place for investors in India, including grievance redressal mechanisms.
Merchant banking refers to a range of financial services including underwriting shares, portfolio management, project counseling, and insurance provided by both commercial and investment banks for a fee. Merchant bankers play an important role as intermediaries between companies raising funds and investors. They perform various functions such as promotional activities, issue management, credit syndication, project counseling, portfolio management, and mergers and acquisitions. Merchant banking activities in India are regulated by the Securities and Exchange Board of India (SEBI). Other key players in the capital markets include underwriters, bankers to an issue, brokers to an issue, and registrars and share transfer agents.
The document discusses the role of SEBI as the regulator of the Indian stock market and its impact on small investors. It notes that SEBI was established in 1988 to regulate stock exchanges and protect investor interests. It aims to promote awareness among small investors and educate them. The conclusion states that SEBI performs legislative, judicial and executive functions to create accountability for small investors, and their returns ultimately depend on the economic conditions and growth of the overall economy.
SEBI and Investor Protection-B.V.RaghunandanSVS College
Investor protection measures as presented by B.V.Raghunandan in National Conference on Merchant Banking held at NSS College, Manjeri, Kerala State, India on August 8, 2007
The Securities and Exchange Board of India (SEBI) is the apex regulatory body for the securities market in India. It was established to protect investors, maintain fair practices, and promote the development of the securities market. SEBI regulates stock exchanges, trading of securities, registration of market intermediaries, and issues guidelines for companies regarding public offers. It aims to educate investors and enforce regulations regarding insider trading, disclosure requirements, and corporate governance.
Merchant Banking - Indian Corporate Market, Clause 49 & Masala BondsAbhijeet Deshmukh
A comprehensive presentation on merchant banking. It starts with Indiann corporate bond market and go on to basics of merchant banking and it digs deep into merchant banking activity. It also has few slides on Clause 49 (Corporate governance) and ends with latest topic Masala Bonds
The document provides an overview of the Indian stock market, including its history and regulatory framework. It discusses the transition from open-outcry floor trading to electronic screen-based trading. The key functions of stock exchanges and major market participants are summarized. The major laws governing the stock market, including the SEBI Act, Depositories Act, and Companies Act are outlined. Types of orders such as limit orders and stop-loss orders are also briefly mentioned.
The Securities and Exchange Board of India was established by the Government of India on 12th April 1988 as an interim administration body to promote orderly and healthy growth of the securities market and for investor protection.
It was functioned under the overall administrative control of the Ministry of Finance of the GOI.
The SEBI was given the statutory powers on 30th Jan 1992 through an Ordinance.
The Ordinance was later replaced by an Act of Parliament known as the Securities and Exchange Board of India Act 1992.
Securities exchange board of india finalArpit Goel
SEBI (Securities and Exchange Board of India) was established in 1988 as a non-statutory body and was given more autonomous powers in 1992 to regulate the securities market. It has a board consisting of a chairman, government officials, and other members appointed by the central government. SEBI was established to address rampant malpractices in the capital market such as by companies, brokers, and consultants that eroded investor confidence. The objectives of SEBI include regulating market intermediaries, prohibiting unfair trade practices, promoting investor education, and regulating mergers and acquisitions. SEBI regulates the primary market, secondary market, mutual funds, and foreign institutional investments.
The Over-the-Counter Exchange of India (OTCEI) was established in 1992 to provide a market for smaller companies that did not meet the listing requirements of larger exchanges. It aimed to create a decentralized and transparent market. The OTCEI is owned by several prominent Indian financial institutions and operates trading counters across the country connected to a central system. Companies seeking listing must have a paid-up capital between Rs. 3-50 crores. The OTCEI uses market makers to promote liquidity and trading in listed companies' stocks for up to three years. However, the OTCEI currently faces sluggish growth and lack of liquidity.
The document provides a critical analysis of the Securities and Exchange Board of India (SEBI). It begins with a brief history of securities regulation in India prior to the establishment of SEBI. It then discusses the introduction and objectives of SEBI, including protecting investors and promoting orderly development of the securities market. The document outlines SEBI's powers and functions, which include regulation of stock exchanges and intermediaries, enforcement actions, and rulemaking powers. It also discusses some examples of SEBI's regulatory, protective and developmental roles. Finally, the document presents a case study analysis of the Sahara vs SEBI case related to the issuance of optionally convertible debentures.
It provides a comprehensive analysis of the SEBI Invetsor Protection Guideline 2000 from the point of view of the companies. It covers offer documents, exceptions, price discovery, green shoe option, e-IPO, etc.
The depository system in India allows investors to hold securities electronically in depository accounts, eliminating the need for physical certificates. Introduced in 1996, depositories like NSDL and CDSL hold securities on behalf of investors through depository participants like banks and brokers. This electronic book-entry system reduces costs and risks compared to physical certificates, allowing faster and more convenient transfer of securities and funds.
SEBI regulates merchant bankers in India through the SEBI (Merchant Bankers) Regulations, 1992. Merchant bankers must register with SEBI and comply with various criteria to carry out activities like managing securities issues, providing corporate advisory services. SEBI classifies merchant bankers into four categories based on the nature of activities and responsibilities. They must meet capital adequacy norms ranging from Rs. 1 crore to Rs. 20 lakhs. Merchant bankers are subject to various operating guidelines set by SEBI regarding financial reporting, code of conduct, and authorization renewal.
1. Merchant banking provides valuable non-banking financial services such as corporate finance, portfolio management, underwriting shares, and project counseling in exchange for fees.
2. Merchant banking originated from merchants in London who financed foreign trade and helped underdeveloped governments raise funds.
3. Merchant banking in India is regulated by SEBI and provides intermediary services between companies needing capital and investors.
The document summarizes the roles and functions of the Securities and Exchange Board of India (SEBI). It discusses that SEBI was established in 1988 by the Government of India and was upgraded to a statutory board in 1992. It describes SEBI's objectives to protect investor interests and promote fair practices in securities markets. The document outlines SEBI's regulatory functions such as registration of intermediaries and prohibition of unfair trade practices. It also discusses SEBI's developmental functions like investor education and research. The powers and departments of SEBI are presented. Recent regulatory cases involving Vedanta-Cairn and Deccan Chronicle Holdings are also summarized.
Role of Security Exchange Board of india in issue of sharesAmudha Mony
SEBI regulates share issues in India to protect investors and promote securities market development. SEBI must approve share issues over Rs. 50 lakhs. Issuers must satisfy entry norms on profitability, investment from qualified institutional buyers, or appraisal to make a public issue. SEBI's role includes reviewing offer documents, ensuring compliance with disclosure norms, and regulating pricing and allotment in issues. Key intermediaries involved in issues include merchant bankers, bankers to the issue, registrars, and underwriters.
How can I determine my investor risk profile? What is Investor Risk Profile? All investors have differing attitudes towards risk. When it comes to investing, it is important to consider your risk profile or tolerance carefully
SEBI (Securities and Exchange Board of India) is India's securities market regulator that was established in 1988 to protect investors, develop and regulate the securities market. SEBI is headed by a board and has various departments that work to achieve its objectives of regulating market intermediaries, promoting investor education, and enforcing prohibitions on unfair trading practices. SEBI also works to facilitate investor grievance redressal and promote an efficient, fair and transparent securities market in India.
This document provides an overview of key concepts related to investors, including definitions of investment and an investor. It outlines different types of investors such as retail and institutional investors. The document also discusses investor rights and obligations, legislations governing capital markets in India and internationally, and various compliances and protections that are in place for investors in India, including grievance redressal mechanisms.
Merchant banking refers to a range of financial services including underwriting shares, portfolio management, project counseling, and insurance provided by both commercial and investment banks for a fee. Merchant bankers play an important role as intermediaries between companies raising funds and investors. They perform various functions such as promotional activities, issue management, credit syndication, project counseling, portfolio management, and mergers and acquisitions. Merchant banking activities in India are regulated by the Securities and Exchange Board of India (SEBI). Other key players in the capital markets include underwriters, bankers to an issue, brokers to an issue, and registrars and share transfer agents.
The document discusses the role of SEBI as the regulator of the Indian stock market and its impact on small investors. It notes that SEBI was established in 1988 to regulate stock exchanges and protect investor interests. It aims to promote awareness among small investors and educate them. The conclusion states that SEBI performs legislative, judicial and executive functions to create accountability for small investors, and their returns ultimately depend on the economic conditions and growth of the overall economy.
SEBI and Investor Protection-B.V.RaghunandanSVS College
Investor protection measures as presented by B.V.Raghunandan in National Conference on Merchant Banking held at NSS College, Manjeri, Kerala State, India on August 8, 2007
The Securities and Exchange Board of India (SEBI) is the apex regulatory body for the securities market in India. It was established to protect investors, maintain fair practices, and promote the development of the securities market. SEBI regulates stock exchanges, trading of securities, registration of market intermediaries, and issues guidelines for companies regarding public offers. It aims to educate investors and enforce regulations regarding insider trading, disclosure requirements, and corporate governance.
Merchant Banking - Indian Corporate Market, Clause 49 & Masala BondsAbhijeet Deshmukh
A comprehensive presentation on merchant banking. It starts with Indiann corporate bond market and go on to basics of merchant banking and it digs deep into merchant banking activity. It also has few slides on Clause 49 (Corporate governance) and ends with latest topic Masala Bonds
The document provides an overview of the Indian stock market, including its history and regulatory framework. It discusses the transition from open-outcry floor trading to electronic screen-based trading. The key functions of stock exchanges and major market participants are summarized. The major laws governing the stock market, including the SEBI Act, Depositories Act, and Companies Act are outlined. Types of orders such as limit orders and stop-loss orders are also briefly mentioned.
The Securities and Exchange Board of India was established by the Government of India on 12th April 1988 as an interim administration body to promote orderly and healthy growth of the securities market and for investor protection.
It was functioned under the overall administrative control of the Ministry of Finance of the GOI.
The SEBI was given the statutory powers on 30th Jan 1992 through an Ordinance.
The Ordinance was later replaced by an Act of Parliament known as the Securities and Exchange Board of India Act 1992.
Securities exchange board of india finalArpit Goel
SEBI (Securities and Exchange Board of India) was established in 1988 as a non-statutory body and was given more autonomous powers in 1992 to regulate the securities market. It has a board consisting of a chairman, government officials, and other members appointed by the central government. SEBI was established to address rampant malpractices in the capital market such as by companies, brokers, and consultants that eroded investor confidence. The objectives of SEBI include regulating market intermediaries, prohibiting unfair trade practices, promoting investor education, and regulating mergers and acquisitions. SEBI regulates the primary market, secondary market, mutual funds, and foreign institutional investments.
The Over-the-Counter Exchange of India (OTCEI) was established in 1992 to provide a market for smaller companies that did not meet the listing requirements of larger exchanges. It aimed to create a decentralized and transparent market. The OTCEI is owned by several prominent Indian financial institutions and operates trading counters across the country connected to a central system. Companies seeking listing must have a paid-up capital between Rs. 3-50 crores. The OTCEI uses market makers to promote liquidity and trading in listed companies' stocks for up to three years. However, the OTCEI currently faces sluggish growth and lack of liquidity.
The document provides a critical analysis of the Securities and Exchange Board of India (SEBI). It begins with a brief history of securities regulation in India prior to the establishment of SEBI. It then discusses the introduction and objectives of SEBI, including protecting investors and promoting orderly development of the securities market. The document outlines SEBI's powers and functions, which include regulation of stock exchanges and intermediaries, enforcement actions, and rulemaking powers. It also discusses some examples of SEBI's regulatory, protective and developmental roles. Finally, the document presents a case study analysis of the Sahara vs SEBI case related to the issuance of optionally convertible debentures.
It provides a comprehensive analysis of the SEBI Invetsor Protection Guideline 2000 from the point of view of the companies. It covers offer documents, exceptions, price discovery, green shoe option, e-IPO, etc.
The depository system in India allows investors to hold securities electronically in depository accounts, eliminating the need for physical certificates. Introduced in 1996, depositories like NSDL and CDSL hold securities on behalf of investors through depository participants like banks and brokers. This electronic book-entry system reduces costs and risks compared to physical certificates, allowing faster and more convenient transfer of securities and funds.
SEBI regulates merchant bankers in India through the SEBI (Merchant Bankers) Regulations, 1992. Merchant bankers must register with SEBI and comply with various criteria to carry out activities like managing securities issues, providing corporate advisory services. SEBI classifies merchant bankers into four categories based on the nature of activities and responsibilities. They must meet capital adequacy norms ranging from Rs. 1 crore to Rs. 20 lakhs. Merchant bankers are subject to various operating guidelines set by SEBI regarding financial reporting, code of conduct, and authorization renewal.
1. Merchant banking provides valuable non-banking financial services such as corporate finance, portfolio management, underwriting shares, and project counseling in exchange for fees.
2. Merchant banking originated from merchants in London who financed foreign trade and helped underdeveloped governments raise funds.
3. Merchant banking in India is regulated by SEBI and provides intermediary services between companies needing capital and investors.
The document summarizes the roles and functions of the Securities and Exchange Board of India (SEBI). It discusses that SEBI was established in 1988 by the Government of India and was upgraded to a statutory board in 1992. It describes SEBI's objectives to protect investor interests and promote fair practices in securities markets. The document outlines SEBI's regulatory functions such as registration of intermediaries and prohibition of unfair trade practices. It also discusses SEBI's developmental functions like investor education and research. The powers and departments of SEBI are presented. Recent regulatory cases involving Vedanta-Cairn and Deccan Chronicle Holdings are also summarized.
Role of Security Exchange Board of india in issue of sharesAmudha Mony
SEBI regulates share issues in India to protect investors and promote securities market development. SEBI must approve share issues over Rs. 50 lakhs. Issuers must satisfy entry norms on profitability, investment from qualified institutional buyers, or appraisal to make a public issue. SEBI's role includes reviewing offer documents, ensuring compliance with disclosure norms, and regulating pricing and allotment in issues. Key intermediaries involved in issues include merchant bankers, bankers to the issue, registrars, and underwriters.
How can I determine my investor risk profile? What is Investor Risk Profile? All investors have differing attitudes towards risk. When it comes to investing, it is important to consider your risk profile or tolerance carefully
The document discusses the listing application and procedures for companies seeking to list on a stock exchange. It covers listing requirements, the role of the designated stock exchange, pre-listing activities like filing documents with regulators, the listing application process including required documents and fees, and post-listing responsibilities. Key steps include filing offering documents with SEBI and the stock exchange; obtaining necessary approvals; appointing bankers; and completing the listing formalities within seven days of finalizing the share allocation basis. Failure to obtain listing approval requires refunding the issue money plus interest.
The document discusses the role of merchant banking in appraising projects, designing capital structures, and managing securities issues. It defines a merchant banker as an entity that engages in issue management by arranging the sale, purchase, or subscription of securities. The key functions of merchant bankers related to issue management include designing capital structures, determining appropriate capital market instruments, pricing issues, preparing prospectuses, and selecting other parties like bankers and advertising consultants to assist with securities offerings.
Merchant banking in India originated in 1969 with the merchant banking division set up by Grindlays Bank. Merchant banks provide specialist financial services like corporate finance, portfolio management, and issue management. The SEBI guidelines regulate merchant banks' activities like public issue allotments and disclosure of non-core business income. Looking ahead, merchant banks will need to ensure their activities protect investors and promote healthy capital markets as the industry continues to evolve in India.
The document provides information on various stock exchanges in India, including the Bombay Stock Exchange (BSE), National Stock Exchange (NSE), Multi Commodity Exchange of India (MCX), Over the Counter Exchange of India (OTCEI), and the United Stock Exchange (USE). It discusses the history, operations, products, technology and trading volumes of these major Indian stock exchanges.
SEBI was established in 1988 and upgraded to a statutory body in 1992 through the SEBI Act. It is headquartered in Mumbai and regulates stock exchanges and other market intermediaries. SEBI aims to protect investors, ensure fair practices, and promote an efficient securities market. It has regulatory and developmental functions, including licensing market intermediaries and promoting research and investor education.
The capital market allows investors to trade investment instruments like stocks and bonds. It serves as a marketplace to transfer funds from investors with surplus capital to those with a deficit. The capital market has two main segments - the primary market where new stock issues are sold, and the secondary market where existing securities are traded, mainly on a stock exchange, to provide liquidity. Investment in the capital market faces risks from stock price volatility and interest rate fluctuations that impact bond prices.
This document is a dissertation report submitted to Uttarakhand Technical University by Gaurav Pandey on the topic of "Study of Derivatives Market in India". The report includes an introduction to the financial services industry and derivatives markets. It discusses the objectives of studying derivatives to analyze futures and options operations and understand how derivatives can help manage risks. The report will analyze profits and losses in cash and derivatives markets and the role of derivatives in the Indian financial market.
The document discusses capital markets and related topics. It defines a capital market as a market for long-term borrowing and lending of capital through financial instruments. It acts as an intermediary between savers and investors, channeling savings to those who need funds. Several factors can affect capital markets, including government policies, economic conditions, and trends in the money market. The major players in capital markets include brokers, dealers, jobbers, and arbitrageurs. Securities and Exchange Board of India (SEBI) regulates capital markets and protects investors.
The document discusses the roles and functions of the Securities and Exchange Board of India (SEBI). SEBI regulates and develops the securities market in India by protecting investors, prohibiting unfair trading practices, regulating stock exchanges and other market intermediaries, and promoting self-regulatory organizations. It also registers and regulates mutual funds. Some key benefits of stock markets mentioned include mobilizing savings for investment, providing liquidity and redistributing wealth. However, low participation rates show that only a small percentage of Indians currently invest in stock markets.
This document provides an overview of the secondary market in India. It discusses how the secondary market evolved to provide liquidity to investors and companies by allowing trading of already issued securities. It describes the key functions and importance of the secondary market in price discovery, facilitating capital allocation, and encouraging savings and investment. It also summarizes major reforms that modernized the Indian secondary market, including establishment of a securities regulator, dematerialization of shares, rolling settlements, and online trading systems.
What is the future of Alternative Investment Funds.pptxSimplybiz
Before we delve into what lies in the future for Alternative Investment Funds, we can understand what it really means. Alternative Investment Funds (AIFs) are basically a pool of funds where the funds are collected from investors to invest it according to a defined investment policy so that the investors can benefit from it. It can be invested in real estate, startups, SMEs, hedge funds, social venture funds and venture capital funds.
The document provides an overview of the Indian financial market and its components. It discusses the key segments that make up the Indian financial market including the capital market, money market, debt market, and the roles of regulatory bodies like SEBI. It also summarizes some popular short-term and long-term investment options available in India. Finally, it provides details about a specific financial services firm called Reliance Securities including its management team, products offered, and board of directors.
Critical evaluation of small investors by Abhishek PandeAbhishek Pande
The document discusses the role of SEBI (Securities and Exchange Board of India) as the regulator of the Indian stock market and its role in protecting small investors. It outlines SEBI's objectives such as promoting awareness among small investors, educating them about economic trends, and overall economic development. The document then describes some of SEBI's powers and responsibilities, including licensing brokers and dealers, preventing fraud, regulating mergers and acquisitions, auditing stock exchanges, making new rules, and educating investors. It also discusses SEBI's findings related to issues small investors face such as misleading advice, inflated ratings and fees, front-running in high-frequency trading, and companies being bailed out.
This document provides an overview of mutual funds in India. It discusses the history of mutual funds in India, types of mutual fund schemes, advantages and disadvantages of investing through mutual funds, performance evaluation, risk and returns, tax treatment for unit holders, and tips for buying mutual funds. It also includes profiles of Standard Chartered AMC Pvt Ltd and IDFC AMC Pvt Ltd, findings from a survey on mutual fund awareness, and conclusions and recommendations.
The financial system plays a crucial role in economic development by facilitating the transfer of resources from savers to investors. It consists of financial institutions, financial markets, financial instruments, and financial services. Recent developments include the establishment of regulatory bodies like SEBI and reforms in the capital market, money market, and commercial banking sector. Capital market reforms involve the growth of stock exchanges, mutual funds, and electronic trading. Money market reforms include deregulating interest rates and developing new market instruments. Reforms in commercial banks feature reduced reserve requirements, interest rate deregulation, and increased operational autonomy.
stock exchange and retail participation of clients in securities marketumesh yadav
The document provides an overview of a project report on retail participation in India's securities market. It discusses the objectives of studying the number of household and individual investors, their demographics, investment preferences, risk perceptions, and reasons for non-investment. It also aims to improve broker services, boost investor confidence, and understand investor needs to enable greater retail participation. The reforms of the 1990s brought the securities market into the mainstream and saw significant growth in individual investment.
This document is a project report submitted by Khavale Ajay Ganesh to the University of Pune in partial fulfillment of an MBA degree. The report focuses on risk management regarding the working of a broking firm and its investors. It includes an acknowledgments section, table of contents, and chapters on the company profile of HDFC Securities, objectives of the project, research methodology, data presentation on capital markets and the working of broking firms, data analysis and interpretation of risk management in broking firms, conclusions and recommendations.
Hi Friends
This is supa bouy
I am a mentor, Friend for all Management Aspirants, Any query related to anything in Management, Do write me @ supabuoy@gmail.com.
I will try to assist the best way I can.
Cheers to lyf…!!!
Supa Bouy
Investment strategies and motivational factors among small investors a studyIAEME Publication
This document summarizes a research paper on investment strategies and motivational factors among small investors in Karnataka, India. The paper studied 425 small investors in Karnataka to understand the strategies and factors influencing their investments in corporate securities. The results showed that small investors prioritized risk and returns when investing. Other important factors included intrinsic value/current market price, timing of investment, cost of shares, and advice from financial advisors. Motivational factors for investing in corporations included quality of management, company track record, persuasion from intermediaries, interim results, and press coverage. The study aimed to provide insight into how small investors make investment decisions.
The document provides an overview of the different investment sectors in India in 2010, including factors affecting trends in each sector. It discusses the major investment sectors at that time such as bank deposits, life insurance, real estate, gold, stocks, bonds, and commodities. It also outlines three major investment projects underway in India: Virgin India, Reliance Power Project, and Bharti Walmart.
My project venture-capital-industry-in-indiapalpreeti
This document provides a project report on venture capital industry in India. It includes an executive summary outlining the various aspects covered in the report such as what venture capital is, its process, major players in India, contributors to the industry and their investments. It also discusses problems faced and measures to address them. The report analyses the current scenario of venture capital funds in India and the regulations governing them.
The document is a project report submitted to HDFC Securities by a student as part of an MBA program. It discusses risk management in stock broking firms and their impact on investors. The report begins with an acknowledgment section thanking those who helped with the project. It then covers various topics through different chapters, including an introduction to capital markets and how broking firms work, the risks involved in broking, risk management strategies, and conclusions and recommendations.
The document is a project report submitted to HDFC Securities by a student as part of an MBA program. It discusses risk management in stock broking firms and their impact on investors. The report begins with an acknowledgment section thanking those who helped with the project. It then covers various topics through different chapters - an executive summary, company profile of HDFC Securities, objectives of the project, research methodology, data presentation on capital markets and how broking firms work, data analysis and interpretation of risk management in broking firms, and conclusion with recommendations.
This document provides a summary of a study comparing financial innovation, changes, survival and growth in the Indian and international markets. It discusses various financial innovations that have occurred in banking, microfinance, derivatives and insurance sectors in India and the US over the past year. The study aims to establish a relationship between financial innovativeness and market growth through an analysis of 10 companies from India and the US. It examines factors influencing market growth like investors' behavior, economic policies and regulations.
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Vighnesh Shashtri
Under the leadership of Abhay Bhutada, Poonawalla Fincorp has achieved record-low Non-Performing Assets (NPA) and witnessed unprecedented growth. Bhutada's strategic vision and effective management have significantly enhanced the company's financial health, showcasing a robust performance in the financial sector. This achievement underscores the company's resilience and ability to thrive in a competitive market, setting a new benchmark for operational excellence in the industry.
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Duba...mayaclinic18
Whatsapp (+971581248768) Buy Abortion Pills In Dubai/ Qatar/Kuwait/Doha/Abu Dhabi/Alain/RAK City/Satwa/Al Ain/Abortion Pills For Sale In Qatar, Doha. Abu az Zuluf. Abu Thaylah. Ad Dawhah al Jadidah. Al Arish, Al Bida ash Sharqiyah, Al Ghanim, Al Ghuwariyah, Qatari, Abu Dhabi, Dubai.. WHATSAPP +971)581248768 Abortion Pills / Cytotec Tablets Available in Dubai, Sharjah, Abudhabi, Ajman, Alain, Fujeira, Ras Al Khaima, Umm Al Quwain., UAE, buy cytotec in Dubai– Where I can buy abortion pills in Dubai,+971582071918where I can buy abortion pills in Abudhabi +971)581248768 , where I can buy abortion pills in Sharjah,+97158207191 8where I can buy abortion pills in Ajman, +971)581248768 where I can buy abortion pills in Umm al Quwain +971)581248768 , where I can buy abortion pills in Fujairah +971)581248768 , where I can buy abortion pills in Ras al Khaimah +971)581248768 , where I can buy abortion pills in Alain+971)581248768 , where I can buy abortion pills in UAE +971)581248768 we are providing cytotec 200mg abortion pill in dubai, uae.Medication abortion offers an alternative to Surgical Abortion for women in the early weeks of pregnancy. Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...AntoniaOwensDetwiler
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...
SMALL INVESTORS' GRIEVANCES AND REDRESSAL MECHANISM IN INDIAN CAPITAL MARKET, Dr. P. VENUGOPAL*
1. ZENITH
International Journal of Multidisciplinary Research
Vol.2 Issue 7, July 2012, ISSN 2231 5780
SMALL INVESTORS‟ GRIEVANCES AND REDRESSAL MECHANISM
IN INDIAN CAPITAL MARKET
DR. P. VENUGOPAL*; DR.K.SUDARSAN**; DR.D.HIMACHALAM***
*Principal,
Seshachala Institute of Management Studies,
PUTTUR- 517583, Chittoor District, A.P.
**Assistant Professor,
Sreenivasa Institute of Technology and Management Studies (SITAMS),
Chittoor.
***Professor,
Sri Venkateswara University,
Tirupati.
ABSTRACT
The present article is an exploration of small investors‟ grievances and redressal
mechanism in Indian Capital Market. It explains the importance of Indian security market
and the need for small investors‟ protection. It is a market in which long period securities
are exchanged. At present the capital market plays an important role in mobilizing
resources and diverting them in productive channels. In this way, it facilitates and
promotes the process of economic growth in the country. The capital market helps the
investors to invest in long term financial assets in many ways. The study reveals that in
spite of the market reforms and regulatory measures initiated by those at the helm of
affairs, many investors continue of suffer several difficulties from a multitude of elements
involved in the capital market. The gullibility of the investors is a major factor inviting
difficulties to them. If they educate themselves better on the intricacies of the market and
show more restraint and caution, a major share of their problems could be averted. This
article aims to analyze various grievances in primary market as well as secondary market
and knowledge about their regulatory mechanisms.
Capital Market is a supporting system that provides vitality and sustenance to industrial
and commercial enterprises. Recognizing the need of capital market development as a
precondition for the blossoming of industries allied areas, every government strives hard
for the sustained growth of their capital market. In India, development of capital market
acquired momentum during the liberalization era. Our government took many measures
for the development of the capital market on sound and healthy lines. Introduction of online trading, dematerialization of securities, derivatives trading, rolling settlement in the
148
INTRODUCTION
www.zenithresearch.org.in
KEYWORDS: Capita Market, Small Investors, Primary and Secondary market, SEBI,
Grievances and Redressal Mechanism.
______________________________________________________________________________
2. ZENITH
International Journal of Multidisciplinary Research
Vol.2 Issue 7, July 2012, ISSN 2231 5780
stock exchanges etc. are notable among them. This has resulted in increased transparency
in dealings, rise in market volume, increased market capitalization of companies etc.
The Indian capital market also went through a major transformation after 1992,
although the beginning of such an initiative could be seen since the second half of 1980‟s.
Since then the market has been growing in leaps and bounds and aroused interests in the
investors. The reason for such a development was an increasing uncertainty caused due to
liberalization and standardization of the prudential requi8rements of the banking sector
for global integration of the Indian financial system, rise in their non-performing assets led
to a decrease in credit from banks to the commercial sector. With liberalization and
opening of the gates led to an expansion of three broad channels of financing the private
sector investments: a) Domestic capital market
b) International capital market
(American depository receipts and Global depository receipts) and c) Foreign direct
investment.
Individual investors in our country suffer from certain inherent drawbacks. There
is a general reluctance on the part of the people to invest either directly or indirectly in
capital market. This may be due to many reasons. Firstly, successful investment in capital
market can be done only by those who have a fairly good knowledge of capital market.
Consequently people shy away from investing in it. Secondly, investors encounter various
impediments created by other market participants. Consequent investor complaints keep
escalating year after year. “The standard of service information being provided to
149
Small investors are the backbone of Indian Capital Market. Their active
participation results in channeling savings into various infrastructural and productive
activities. As per the latest estimate made by SEBI, there were 19 million share owning
individuals in India. This is too small a figure considering the fact that the population of
our country exceeds one billion. In many developed countries like USA, a large proportions
of people ark their investment in capital market instruments. It is true that Indian capital
market underwent radical changes as a result of liberalization measures. However such
reforms have not proved instrumental in attracting the majority of investors into the
capital market. Considering the fact that individual savings represent a major chunk of
domestic savings, more investors must be brought to the mainstream of the capital market.
Hence there is a need to instill confidence in capital market investment in the minds of
investors.
www.zenithresearch.org.in
The efficiency of the capital market which can be defined in terms of its ability to
reflect the impact of all relevant information in the prices of the securities and the large
number of profit driven individuals who act dependently on one another grew
tremendously in the Indian context. The number of issues enlisted before and after 1991
has been exponential in nature. Some of the major reasons for its growth are advent of
SEBI and abolishment of Capital Issues control act, new regulations for protection of
investors, on-line trading , depositories and credit rating system etc. here it has been tried
to highlight the major problems linked with new issue market and the problem solving
mechanisms built to take care of the investors.
3. ZENITH
International Journal of Multidisciplinary Research
Vol.2 Issue 7, July 2012, ISSN 2231 5780
shareowners in India by companies and stock brokers are not only below world standards
but leave a majority of Indian shareowners dissatisfied”. Thirdly, the series of securities
scams unearthed over the past few years have dampened the sprit and enthusiasm of
investors.
The Securities and Exchange Board of India (SEBI), in 1991 made a compilation of
common investor grievances, relevant legal provisions and various remedies available to
the investors. The grievances were grouped under the following heads.
Grievances
2
Non-Receipt of Dividend
3
Non-Receipt of share certificates after transfer
4
Debentures
5
Non-Receipt of letter of offer for rights
6
Collective Investment schemes
7
Mutual funs/ venture capital funds/ Foreign Ventures/ Capital Investors/ Foreign
Institutional Investors/ Portfolio manager, Custodians
8
Brokers/Securities lending Intermediaries/ Merchant Bankers/ Registrars and
Transfer agents/ Debenture Trustees/ Bankers to Issue/ Credit Rating Agencies
Trustees/ Underwriters/ Depository Participants
9
Securities Exchanges/ Clearing and settlement organizations/ Depositories
10
Derivative Trading
11
Corporate Governance/ Corporate Restructuring/ substantial Acquisition and
Takeovers/ Buyback/ delisting/ Compliance with Listing conditions.
Apart from the above grievances, investors face certain other problems as well. This
is mainly due to lack of market liquidity in many securities, excessive speculation in the
market, price rigging on many scrips, insider trading by those possessing price sensitive
information, excessive premium charged by some company promoters under the guise of
free pricing norms etc.
www.zenithresearch.org.in
Refund Order/ Allotment Advise1
150
1
4. ZENITH
International Journal of Multidisciplinary Research
Vol.2 Issue 7, July 2012, ISSN 2231 5780
At present there exists a mechanism for redressing grievances of the investors. The
Government of India has made elaborate legislative measures for protecting their interest.
Such legislation lies spread in various Acts like Companies Act, 1956, Securities Contract
(Regulation) Act, 1956 Consumer Protection Act, 1986 and SEBI Act, 1992. An aggrieved
investor can approach a court of law and seek legal remedy. Besides, each stock exchange
maintains an Investor Grievances Cell to redress grievances and an Arbitration Committee
to settle disputes regarding stock market transactions. However, investors look forward
heavily to SEBI has now become a key player in the financial regulatory framework in
India.
ROLE OF SEBI ON INVESTOR PROTECTION
SEBI was established in 1988 as a non-statutory body to deal with all matters
relating to the development and regulation of the securities market and protecting the
interests of investors. Subsequently, it was armed with statutory powers through the
promulgation of SEBI Act, 1992. It is also vested with the power of a civil court and can
summon all categories of market intermediaries to investigate on their working, to impose
penalty and to initiate prosecution against them. For the effective functioning of the capital
market, it has issued several guidelines; notable among them is that on disclosure and
investor protection. It contains a substantial body of requirements for the issuers and
intermediaries to ensure higher standards of integrity and fair dealing. In order to ensure
that no malpractice taken place, a representative of SEBI supervises the allotment process.
SEBI has also issued an advertisement code for the issuers to ensure that the advertisement
remains fair and does not contain statements that mislead the investor or vitiate their
informed judgment. Its regulatory polices and actions are found to have a great bearing on
the efficiency of the capital market and though it on the efficiency of the whole economy.
Investors can approach SEBI by filing their complaints against companies and
brokers. It has set up certain procedures like the categorization of complaints and their
regular follow-up with defaulting companies, Registrars and Merchant Bankers. With a
view to handle a large volume of complaints, the grievances redress cell has been
computerized. A comparative view of the number of investor complaints received by SEBI
and the rate of redress of such complaints is given in Table No.1.
Grievances Received
Years
Grievances Redressed
Redressal
Rate
Year-wise
Redressal
151
COMPLAINTS RECEIVED AND REDRESSED BY SEBI
www.zenithresearch.org.in
TABLE NO: 1
5. ZENITH
International Journal of Multidisciplinary Research
Vol.2 Issue 7, July 2012, ISSN 2231 5780
During
the Year
Cumulative
During
the Year
Percentage
Rate
(%)
(%)
Cumulative
1,8794
4,061
4,061
21.61
21.6
1992-93
1,10,317
1,29,111
22,946
27,007
20.92
20.8
1993-94
5,84,662
7,13,773
3,39,517
3,66,524
51.35
58.0
1994-95
5,16,080
12,29,853
3,51,842
7,18,366
58.41
68.2
1995-96
3,76,478
16,06,331
3,15,652
10,34,081
64.37
83.8
1996-97
2,17,394
18,23,725
4,31,865
14,65883
80.38
198.66
1997-98
5,11,507
23,35,232
6,76,555
21,42,438
91.74
132.27
1998-99
99,132
24,34,364
1,27,227
22,69,665
93.24
128.34
1999-„00
98,605
25,32,969
1,46,553
24,16,218
95.39
148.63
2000-01
96,913
26,29,882
85,583
25,01,801
95.13
88.31
2001-02
81,600
27,11,482
70,328
25,72,129
94.86
86.19
2002-03
37,434
27,48,916
38,972
26,11,101
94.99
104.11
2003-04
36,744
27,85,660
21,531
26,32,632
94.51
58.60
2004-05
54,435
28,40,095
53,361
26,85,993
94.57
98.03
2005-06
40,485
28,80,580
37,067
27,23,060
94.53
91.56
2006-07
26,473
29,07,053
17,899
27,40,959
94.28
67.61
2007-08
54,933
29,61,986
31,618
27,72,577
93.61
57.58
Source: SEBI Annual Report 2008-09
It can be seen form the table that during the financial year 1991-92 SEBI received
18,794 complaints of which 4,061 were resolved marking a redress rate of 21.6%. The
number of complaints registered a substantial increase in subsequent years and reached
the peak level of 5,84,662 in 1993-94. Subsequently it gradually declined and in 2007-08, it
received only 54,933 complaints. Considering the fact that investor problems cannot be
warded off within a short period, it is worth inquiring whether it is a sign of the deflated
investor confidence in SEBI. On the redressal front also a corresponding progress was
www.zenithresearch.org.in
18,794
152
1991-92
6. ZENITH
International Journal of Multidisciplinary Research
Vol.2 Issue 7, July 2012, ISSN 2231 5780
noticed. In 1997-98 SEBI resolved a record number of 6,76,555 complaints. Surprisingly
during the years from 1996-97 to 2007-08 the number of complaints resolved surpassed the
number of complaints received. Even though this may be termed as sign efficiency, it could
not also be as read as a failure to resolve the grievances in time. In spite of these acts the
role taken by SEBI as a market regulator, through Marker Surveillance, Enforcement of
Discipline among different market players and other policy measures regarding capital
market operations is to be appreciated.
GRIEVANCES OF INVESTORS
GRIEVANCES IN THE PRIMARY MARKET
Making investment in the new issue market is relatively simple. With an element of
luck, investors could get allotment of good securities at reasonably low prices from the
primary market. This is the main factor, which induces more and more investors to the
153
In my field enquiry, as many as 175 investors opined that they have experienced a
difficulty or another while investing in the capital market. But the nature and cause of the
difficulty varied form person to person. In the context of close analysis investor grievances
were classified under four heads namely grievances in the primary market, the secondary
market and those against brokers. A ranking of investor grievances has been made taking
into account the relative differences in the gravity of the problem. Only the first three
ranks are considered for analysis and weighted scores are prepared by assigning weight of
3, 2 and 1 for the first, second and third rank respectively. The non-commendable practices
leading to grievances are analysed under each head separately.
www.zenithresearch.org.in
The foregoing discussion analyses that individual investors are facing many
difficulties in the capital market. Some of them owe their origin to lack of marker
experience and ill-conceived decisions of investors, while many others are caused by factors
beyond their control. There is a misconception among the public that capital market is a
short-cut to multiply investments within a short span of time. This paradox has attracted
some investors to the market, who do not posses even an elementary knowledge of capital
market investment. The irrational and haphazard investment decisions of these half-baked
investors have resulted in untold miseries to them. Besides this, the manipulative practices
of other market participants like share brokers and company promoters have aggravated
their grievances. Among the consequences are inadequately or lack of returns, opportunity
loss form alternative investments and above all the mental strain of investors. It will
seriously impair the confidence of investors leading to their massive withdrawal from the
capital market, which adversely affect the economic development of the country. It makes
imperative to study the difficulties encountered by investors in the capital market. The
study was conducted identifying Andhra Pradesh (AP) as the sample area. For the purpose
of the study, the state of AP is divided into three geographical regions- Rayalaseema,
Kostha, Telangana. A district at random has been selected from each of the three regions.
The districts selected are Chittoor in Rayalaseema, Krishna in Kostha and Hyderabad in
Telagana. A sample 300 individual investors, i.e. 100 each form each of the above districts
have been selected for detailed investigation.
7. ZENITH
International Journal of Multidisciplinary Research
Vol.2 Issue 7, July 2012, ISSN 2231 5780
primary market. At the same time the incidence of grievances is also relatively high in this
sector. The grievances of investors were mainly due to misleading advertisements, nonreceipt of allotment advice or refund orders, non-receipt or delayed receipt of share
certificates, issues made by vanishing companies and non-listing of securities in the stock
exchanges. The nature of grievances in the primary market as pointed out by respondents
presented in Table No.2 shows that investing in issues made by the vanishing companies,
i.e. fly-by-night companies promoted with a view to mobiles funds though public issues,
ranked first with a weighted score of 30.46%. Misleading advertisement (25.27%), Nonlisting of securities (15.23%) and Non-receipt of share certificate (12.63%) followed suit.
TABLE NO.2
NATURE OF GRIEVANCES IN THE PRIMARY MARKET
Percentage
Weighted
Rank
Issues make by Vanishing Companies
228
30.46
I
Misleading advertisements
189
25.27
II
Non-listing of securities
114
15.23
III
Non-receipt of share certificate
95
12.63
IV
Non-receipt of allotment advice
62
8.26
V
Non-receipt of refund orders
61
8.15
VI
Total
750
100
GRIEVANCES IN THE SECONDARY MARKET
Investors could buy and sell the existing securities from the stock exchange through
the stockbrokers. Since investors were not permitted entry to stock exchanges, stock
market transactions were characterized by lack of transparency. It is true that
technological reforms in the marketing like on-line trading and dematerialization of
securities led to increased transparency and helped in solving some of the major problems.
However many problems continue to haunt investors. They include bad delivery, delay in
transfer and transmission, problems relating to conversion to shares, problems of
consolidation and splitting, delay in issue of duplicate certificate and liquidity problems.
www.zenithresearch.org.in
Weighted
Score
154
Nature of grievances
8. ZENITH
International Journal of Multidisciplinary Research
Vol.2 Issue 7, July 2012, ISSN 2231 5780
155
www.zenithresearch.org.in
The responses of investors collected in the course of the study show that (Table No.3)
liquidity problem with a weighted score of 30.08% in the most distressing one in the
secondary market followed by bad delivery (27.38%), delay in transfer and transmission of
securities (19.98%) and problems relating to conversion to shares (9.76%). Hence the
analysis reveals that the benefits offered by stock exchange are not fully enjoyed by
investors in respect of the majority of listed scrips.
9. ZENITH
International Journal of Multidisciplinary Research
Vol.2 Issue 7, July 2012, ISSN 2231 5780
TABLE NO.3
NATURE OF GRIEVANCES IN THE SECONDARY MARKET
Nature of grievances
Weighted
Score
Percentage
Weighted
Rank
Liquidity problem (lack of Trading/delisting)
237
30.08
I
Bad Delivery
216
27.38
II
Delay in transfer and transmission
158
19.98
III
Problems relating to conversion to shares
77
9.76
IV
Delay in issue of duplicate certificate
58
7.30
V
Problems on consolidation & Splitting
43
5.50
VI
Total
789
100
GRIEVANCES AGAINST BROKERS
156
www.zenithresearch.org.in
The operational flaws of companies caused the giant share of the grievances to
investors in the primary and secondary market as analysed above. Apart from companies,
stock brokers and sub-brokers constitute a major source of investor complaints. The
complaints raised against brokers include delay or non-receipt of contract notes, arbitrary
commission charged by brokers and sub-brokers, delay in payment or even non-payment
of securities sold and delay in delivery or non-delivery of securities purchased by investors.
The major complaints raised by the respondents against brokers are depicted in Table
No.4. It is evident from the table that delays in payment or non-payment on the sale of
securities is the major complaint against brokers with a weighted score of 33.39% while
charging arbitrary commission (29.13%) and delay in delivery or non-delivery of share
certificate (28.62%) are other major complaints in the order of importance.
10. ZENITH
International Journal of Multidisciplinary Research
Vol.2 Issue 7, July 2012, ISSN 2231 5780
TABLE NO.4
GRIEVANCES OF INVESTORS AGAINST BROKERS
Nature of grievances
Weighted
Score
Percentage
Weighted
Rank
Delay in payment or non-payment
174
33.39
I
Arbitrary commission
151
29.13
II
Delay in delivery or non-delivery of share
certificates
149
28.62
III
Delay or non-receipt of contract note
46
8.86
IV
Total
520
100
REDRESS OF GRIEVANCES
As has been pointed out above, Government and policy-makers have evolved a
number of measures to solve the problems faced by investors in the capital market. But
many investors are not seen to have adequately utilized the grievance redress mechanism
available in the capital market.
The following Table No.6 compiles in a tabular form the responses received from
the small investors regarding their knowledge about the redressal system.
TABLE NO: 6
SMALL INVESTORS: KNOWLEDGE ABOUT REDRESSAL SYSTEM
% of
Investors
Investors
SEBI
83
48.57
RBI
26
15.14
Stock Exchange
5
2.86
Consumer Court
9
5.43
www.zenithresearch.org.in
No. of
157
Regulators
11. ZENITH
International Journal of Multidisciplinary Research
Vol.2 Issue 7, July 2012, ISSN 2231 5780
Ministry of Corporate Affairs
11
6.29
Company Law Board
9
5.14
Investors organization
5
3.14
Civil Court
3
2.00
Others
19
11.43
Total
170
100.00
Their belief that the SEBI is a regulator is not very encouraging, although it does
performs some regulatory functions. The investors have heard the SEBI as a government
agency connected with the Share Bazaar, Public Issues, Capital market etc. But they do not
seems to know for what type of grievances the SEBI is to be contacted, which department
and who the official concerned. For instance, some small investors seem to have
approached the SEBI for redressal in cases of fraud committed by the private sector, which
is not related to the SEBI at all. While approaching some agency for help and redressal
deserves appreciation, at the same time, it is necessary to inform correctly all investors the
appropriate agencies to be contacted for redressal. As Table No.6 shows, I the sample as
158
From Table No.6 it is clear that 26 of the sample (15.14%) know about RBI
functioning as a regulator. But they did not know which department of the RBI should be
contacted for redressal. The Indian investors in general know that the RBI is one of the
most reputed Indian institutions concerned with banks. But from the survey, it is found
that the knowledge of the respondents about the different functions of the RBI is limited.
Therefore they send their complaint/ grievance for remedying to different departments,
contact the wrong person. In some cases, it is found that they have approached the wrong
institutions. Complaints which ought to be sent to the SEBI are sent to the RBI. Under the
circumstance, what is needed is to encourage small investors, whenever they have a
grievance, at least write to some regulator. And Regulators and the Government should
evolve a system among themselves to pass on the complaints/ grievances of the small
investors received to the appropriate regulators. These bodies should inform the investing
public as to the correct/ right regulator, (either RBI or SEBI) and that their complaints
have been forwarded to the regulator concerned for follow up action.
www.zenithresearch.org.in
The purpose in asking the respondents questions about the redressal system was to
understand their knowledge about the present regulatory system and its status. In some
ways there responses were encouraging. But it was somewhat disconcerting to find the
responses. It was clear that all of them knew that there were many in the system. They
approached various regulators viz. the SEBI, RBI, CLB, MCA, Consumer Courts and
others. They also knew that proper regulator should be approached. Their knowledge that
there are separate regulators for different financial instruments is in a way encouraging.
12. ZENITH
International Journal of Multidisciplinary Research
Vol.2 Issue 7, July 2012, ISSN 2231 5780
many as 83 persons (48.57%) have approached the SEBI or recognized it as an authority
for investors‟ grievance redressal. But they are not quite sure that it is the right institution
to be approached for the redressal of their particular grievance. Some contact police and
other agencies for different types of fraud not knowing that for their particular problem
the SEBI is the right agency to be contacted.
Among the sample respondents 19 people (11.43%) believed that the police or
broker concerned could be approached for redressal. But the police are an agency
concerned with the maintenance of law and order in general system in the country. Fraud,
cheating, manipulation, and similar irregularities in the stock market do not come under
their purview. It is their ignorance about the redressal system that makes some go to the
police for help.
To summarize knowledge of small investors about the redressal system, it is found
that they have some but imprecise knowledge about the regulatory system, names of
various regulators etc. But their ignorance about it is greater then their knowledge.
Though a small investor knows about the names of various regulators viz., ROC, MCA,
SEBI and others, he does not know about the right agency to be contacted or approached.
Nor does he know about the right department and the person in the agency to be contacted.
He does not understand the technicalities of the redressal system. He gets confused and lost
in it. While going through the responses a unique thing was been observed, it was observed
that almost 50% cases of the sample failed to approach to correct appropriate authority or
regulator.
The aggrieved investors were found to have suffered losses of different magnitudes.
The nature of incidence of losses shows that among the 259 aggrieved investors, 146 have
suffered monetary losses due to the un-commendable practice of market participants. It
follows that even though the offenders could be booked in many cases, the damage caused
could not be repaired. The intensity of loss suffered by aggrieved investors‟ shows in table
no.7.
TABLE NO.7
Frequency
Percentage
0-3000
9
6.29
3001-5000
21
14.15
5001-10000
28
18.87
10001-20000
30
20.44
159
Amount (in Rs.)
www.zenithresearch.org.in
LOSS SUFFERED BY INVESTORS LEADING TO GRIEVANCES
13. ZENITH
International Journal of Multidisciplinary Research
Vol.2 Issue 7, July 2012, ISSN 2231 5780
20001-50000
50
34.28
50001-100000
6
4.09
More than 100000
3
2.20
Total
146
100
The above Table No.7 shows the range of the amount of money lost by the sample
investors. It ranges form Rs.3000 to Rs.3,00,00, the average being approximately
Rs.40,000. Given the size of small investors‟ population in India, it is no ordinary loss to the
investing community.
CONCLUSION
The study reveals that in spite of the market reforms and regulatory measures
initiated by those at the helm of affairs, many investors continue of suffer several
difficulties from a multitude of elements involved in the capital market. The gullibility of
the investors is a major factor inviting difficulties to them. If they educate themselves
better on the intricacies of the market and show more restraint and caution, a major share
of their problems could be averted. At the same time, the market participants and
companies should recognize that the gullibility of the investors is not a sign of their
strength but the result of the weakness of the system. In depriving the investors of what is
due to them and trying to corner illicit wealth, they are killing the goose that lays the
golden egg. Every one should bear in mind that capital survives on and is sustained by
investor satisfaction and trust. Hence the market participants should reciprocate positively
to the efforts taken by the authorities in letter and spirit and avoid delays caused by
protracted legal procedures. Only then Indian capital market will be on par with other
developed markets of the world.
REFERENCES
3. Ram Khanna, Paramjit Singh and Vanita (2004), Financial Markets in India and
Protection of Investors, Published by New Century Publications, New Delhi.
4. Securities and Exchange
www.sebi.gov.in
Board
of
India,
annual
reports
2002
to2009
5. Survey of Indian Investors conducted by Securities and Exchange Board of India
(SEBI) & National Council of Applied Economic Research (NCAER) -1999-2000.
160
2. Nifty 50 Stock of the nation, Indian Securities Market – A Review, National Stock
Exchange of India Limited, Volume X, 2007
www.zenithresearch.org.in
1. Handbook of Statistics on the Indian Securities Market 2009.
14. ZENITH
International Journal of Multidisciplinary Research
Vol.2 Issue 7, July 2012, ISSN 2231 5780
161
www.zenithresearch.org.in
6. www.sebi.com/investor