Human behaviour is one of the most complex studies. Different disciplines have attempted within their respective own parameters to interpret the human behaviour and their decision making attributes. Behavioural Finance is also one such discipline which has been evolved mainly due to the weaknesses of the Traditional Finance theories to study the investors’ behaviour particularly in the securities market. Behavioural finance has given many new theories of human behaviour such as Cognitive Dissonance Theory, Loss Aversion Behaviour, Regret Aversion Behaviour, Mental Accounting etc and so on. Herd behaviour is also one of such important theories as given by the Behavioural Finance discipline. Different studies have already been made both in India and also abroad on the presence or measurement of degree of herding in the stock market. However in this conceptual paper an attempt has been made to elaborate and diagnose the Herd Behaviour theory of Behavioural Finance in a very simple yet scientific manner so that we can have an insight about what actually the Herd Behaviour is or that to know its features or factors signifying the presence of Herding.
Behavioural Finance, Herd Behaviour, Securities Market, Traditional Finance
