Effectiveness of Regulatory measures in stock market-a study on retail investors in Karnataka

The extant research examines the effectiveness of regulatory measures towards protecting retail investors in Karnataka. This study also fills the lacuna by studying the investor's perception towards recent regulatory actions to avoid various market misconducts. This is an early effort to study the perception level of small investors in Karnataka. Several research works are conducted in this area. These works vary widely in terms of their objectives and scope. However, most of the studies have focused on the nature and extent of problems faced by the investors. The effectiveness of the measures initiated by the regulators is not studied to the desired extent as evidenced by the review of literature. Hence we consider this work interesting and relevant for the following reasons. Firstly, the study throws a light on effectiveness of present grievances redressal mechanism of Securities Exchange Board of India (SEBI) and awareness and perception of retail investors on the same. Secondly, it evaluates the effectiveness of utilizing Investor Education and Protection Fund (IEPF) under Ministry of Corporate Affairs (MCA) provisions and awareness and perception of retail investors on those provisions. In sum this paper pleads for implementation of effective regulatory action to avoid various market misconducts, which in turn increase the confidence in the mindset of the retail investors. This can be achieved by Indian regulators through conducting various awareness campaign and programs in all places of nation. This will help the regulators to create investors democracy by bringing them into the main stream.