Journal Press India^®

Author Details ( * ) denotes Corresponding author

This paper examines the impact of stock market reforms on investors’ confidence and behaviour in Indian stock market. The research design applied for the study is analytical and descriptive in nature. Both the primary and secondary data were used in this study. The primary data were collected from investors of Indian securities market covering 10 city corporations of Tamil Nadu. Cronbach alpha test, Split - half reliability test, Confirmatory Factor Analysis (CFA), Content and Construct Validity were applied to ensure the validity and reliability of data collection instrument. Primary data were analysed using Structural Equation Modeling (SEM). It is suggested that the regulating body may take suitable measures to consider these 12 statements while designing investors’ educational programme with respect to these 12 variables is vital to enhance investors’ confidence towards stock market reforms. Suitably designed educational programme will instil confidence among the investors with respect to stock market reforms in Indian securities market. High level of confidence will help the investors to take right investment decisions at right time.

Keywords

Stock market reforms; Investors’ Confidence; Behaviour; SEBI; BSE; NSE.

1. Chakrabarti, R. (2010). Financial development in India - Status and challenges.Retrieved from http://ssrn.com/abstract=1689493 or http://dx.doi.org/10.2139/ssrn.1689493
2. Gupta, L.C. (1996). Challenges before Securities and Exchange Board of India (SEBI). Economic and Political Weekly, 31(12), 751-757.
3. Loong, H. S. (2000). ASEAN post crisis: Rebuilding of confidence and prosperity. Retrieved fromhttps://www.bot.or.th/English/Press and Speeches/.../BGLee301100.pdf
4. Pangano, M. (1993). Financial markets and growth: An overview. European Economic Review, 37(2–3), 613-622.
5. Qadri, S. S. & Shabbir, M. (2014). An empirical study of over confidence and illusion of control biases, impact on investor’s decision making: An evidence from ISE. European Journal of Business and Management, 6(14), 38-45.
6. Radha, V. (1995). A study of investment behaviour of investors of corporate securities. Doctoral Thesis, Alagappa University, Karaikudi, India.
7. Shahid, S. F. A. (2008). Worldwide markets are jittering: More emphasis on investor education is required. White Paper written for the ETF and Indexing Investments, MENA Sep. 08 Conference.
8. Swarup, K. S. (2002). Role of mutual funds in developing investor confidence in Indian capital markets. South Asian Journal of Socio-Political Studies, 2(2), 58-60.
9. Warne, D.P.  (2012). Investment behaviour of individual investor in stock market. Retrieved from www.mairec.org/IJRFM/Feb2012/21.pdf.
10. Waweru N. M., Evelyne, M. & Elliana, E. (2008). The effects of behavioural factors in investment decision making: A survey of institutional investor operating at the Nairobi Stock Exchange. International Journal of Business and Emerging Markets, 1(1), 29-41.