Impact of Stock Market Reforms on Investors’ Confidence in Indian Securities Market with special reference to Tamilnadu

Abstract

This paper attempted to analyse the impact of stock market reforms on investors” confidence in Indian securities market with special reference to Tamilnadu. The capital market activities are now considered as the barometer of the economic development of a country, because they channel savings to investments and make them available for productive use through a range of complex financial products called “securities”. There are lot of reforms such as screen based trading, demutualization, compulsory dematerialization, ban on insider trading, rolling settlement, investor education, internet trading etc. The primary data have been collected from investors of Indian securities market in all the 10 City Corporations of Tamilnadu and secondary data were collected from reports published by the Securities and Exchange Board of India (SEBI), National Stock Exchange (NSE), Over the Counter Exchange of India (OTCEI), Bombay Stock Exchange (BSE), Association of Mutual Funds in India (AMFI) and various regional stock exchanges, journals, magazines, periodicals and dailies. The sample size for the study was 402 investors in Tamilnadu. Simple percentage analysis, chi square test, factor analysis, cluster analysis and correlation analysis were used to analyse the data. It is concluded that more appropriate reform measures and suitable investors educational programmes are required to enhance the image of the Indian stock market at par with prominent and leading international stock markets in the world.