Role of Sebi in Capital Market Reforms in India - A Study of Investors Perspectives

The present paper provides a platform for understanding and analyzing the investor's perceptions towards the role of SEBI in formulating capital market reforms in India. Markets exist to facilitate the purchase and sale of goods and services. The financial market exists to facilitate sale and purchase of financial instruments. The 1990s have witnessed the emergence of the securities market as a major source of finance for trade and industry in India. A growing number of companies have been accessing the securities market rather than depending upon loans from financial institutions or banks. The corporate sector is increasingly depending on external sources for meeting its funding requirements. Capital market involves various instruments which can be used for financial transactions. Capital market provides long term debt and equity finance for the government and the corporate sector. Capital market can be classified into primary and secondary markets. The primary market is a market for new shares whereas in the secondary market, the existing securities are traded. The capital market operations are regulated by the Securities and Exchange Board of India (SEBI). Thus, capital market plays a major role in the development of industries in India. Several measures have been taken in the last decade to make the securities market in India better regulated, more efficient and generally safer. The regulator, SEBI, is regarded throughout the world as independent and effective. The regulator has put in place a well-designed disclosure based regulatory regime. The analysis made with the help of both primary data through structured questionnaire and secondary data through various sources. Since this paper gives an overview of capital market, advantages and disadvantages of capital market and key issues in Indian capital market. Finally, this paper offer suitable conclusion for the need and the relevance of reforms in capital market.