Indian security market: trends and challenges

Indian security market turned out to be among the best performers with Bombay Stock Exchange (BSE) Sensex rising 29 per cent in 2014. Most of the market players believed that the trend will continue in future also on the ground of new reforms, strong foreign fund inflows, revival of manufacturing sector, improvement in macro-economic situation and increase in corporate earnings growth. Despite of the sharp rise, the price to earning ratio was found lower in 2014 than five years average ratio. In 2015, due to financial problems in Greece and China, Indian security market is being affected and observed slight slowdown. The present study focuses on the trends of Indian security market based on industry-wise capital raised, number of companies listed, number of sub-brokers registered, number of shares traded, annual averages of share prices etc for the 5 years period i.e., 2009–10 to 2013–14. The challenges are also studied by examining the investor's grievances received by SEBI during five years and nature of investigations carried out by SEBI. It can be concluded that although there is increase in number of companies listed on BSE and good amount of sub-brokers are registered on security market still there is decline in the quantity of shares traded in cash segment. It is suggested that sub-brokers and even educational institutes should conduct investment awareness programs attract more investors to make investment in security market.