IDEAS home Printed from https://ideas.repec.org/p/iim/iimawp/wp01581.html
   My bibliography  Save this paper

Retail Investors and the Budget 1999 - An Agenda

Author

Listed:
  • Gupta Ramesh

Abstract

With the advent of SEBI, the regulatory philosophy has changed from merit (administered) to disclosure (market based). Since retail investors do not have expertise and resources to fully understand the disclosed information, they generally participate in the capital markets through mutual funds. In India, institutional accountability to investors has been dismal and the regulators have repeatedly failed to provide effective and timely remedies. Retail investors, though enthusiastic in the beginning, have lost faith in mutual funds because of many ugly episodes. Most of the investors’ savings are now going to assured and/or fixed income schemes and not to equity funds. Financial development institutions are in universal banking financing consumer loans and trading on interest spread rather than performing their basic role of converting deposits into risk capital and smoothening of maturity to fund long duration projects. Foreign Financial Institutions (FIIs) also have not contributed much of risk capital to the new projects; they are making money by fast churning their portfolios. Infrastructure and development-oriented projects are starved of funds. The government is concerned and wants to lure retail investors back to the market. Retail investors are the major (rather only) source of providing risk capital in the absence of effective financial intermediation. This paper is an attempt to offer some suggestions to bring retail investors back into the market.

Suggested Citation

  • Gupta Ramesh, 1999. "Retail Investors and the Budget 1999 - An Agenda," IIMA Working Papers WP1999-01-06, Indian Institute of Management Ahmedabad, Research and Publication Department.
    • Handle: RePEc:iim:iimawp:wp01581
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iim:iimawp:wp01581. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/eciimin.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.