RETAIL INVESTORS IN INDIAN CAPITAL MARKET – SOME ISSUES

Anuradha Reddy Malipatel

Abstract


Capital market is the backbone of any country’s economy. It facilitates conversion of savings to investments. Capital market can be classified as primary and secondary market. The fresh issue of securities takes place in primary market and trading among investors takes place in secondary market. Primary market is also known as new issues market. Equity investors first enter capital market though investment in primary market. In India, common investors participating in the equity primary market is massive. The number of companies offering equity through primary markets increased continuously in the post independence period till the year 1995. After 1995, there is a continuous slump experienced by the primary market offering equity. The main reason for slump is lack of investor confidence in the primary market. So it is important to understand the causes and measures of revival of investor confidence leading to capital mobilization and investment in right avenues creating, economic growth in the country. The retail investors play important role in the capital market. Though, their individual contribution may be small but, when it is summed it will become a huge amount/fund. The economic disparities can be reduced by encouraging these retail investors. A survey results says that only 12 per cent of the savings amount is coming to capital market. The present paper is a modest attempt to study the retail investors in Indian capital market.


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ISSN : 2251-1547