GRIEVANCES AND REDRESSAL OF INVESTORS IN INDIAN CAPITAL MARKET WITH REGARD TO COIMBATORE CITY

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1 GRIEVANCES AND REDRESSAL OF INVESTORS IN INDIAN CAPITAL MARKET WITH REGARD TO COIMBATORE CITY Mrs. R. Vennila Assistant Professor, Student, B.Com, Department of Commerce, Sri Krishna Arts and Science College, Coimbatore Ms. Nevedita. V, Assistant Professor, Student, B.Com, Department of Commerce, Sri Krishna Arts and Science College, Coimbatore Abstract The study focus on trading in Capital market, type of investments that made in capital market. Preference of shares between equity and preference shares. Analyzing their capital gain in trading of securities. Analysis of other investments they have made such as money market, derivatives. Awareness about regulators and regulations governing capital market. Investors opinion about technology in securities, identify the risk of investing in stock. Grievances in the primary and secondary market and on brokers such as delay in payment, arbitrary commission, delay in delivery of share certificate etc. The primary objective of the study is to study the grievance and redressal of Investors in Indian Capital Market with regard to Coimbatore. Stratified Random Sampling is followed with the sample size of 110. The Primary Data Collection Method obtained from the people feedback on the questionnaire which was distributed by the group members at various places. The secondary data was obtained from various journals, internet, magazines etc. The main scope of the study is limited to Coimbatore City. Chances of some wrong sample cannot be eliminated. Time is major constrain. Only limited sample size (110) was possible for such a vast research within a limited period of time. INTRODUCTION: Capital market is the backbone of any country s economy. It is an engine for economic growth, providing an efficient means of resource mobilisation and allocation. The Indian capital market is one of the oldest capital markets in the world. It dates back to the 18th century when the securities of the East India Company were traded in Mumbai and Kolkata. However, the orderly growth of the capital market began with the setting up of The Stock Exchange of Bombay in July 1875 and Ahmedabad Stock Exchange in Eventually 19 other Stock Exchanges sprang up in various parts of the country. OBJECTIVES OF THE STUDY: -To study the grievance and redressal of Investors in Indian Capital Market with regard to Coimbatore -To analyse the information search and investment option of retail investors. -To find the relationship between demographic variables of investors and their investment objectives, decision and satisfaction. REVIEW OF LITERATURE Ahmed Naseem 1 (2000) in his study opined that bonus shares are considered a mover of market sentiments which in turn sets an upbeat trend in equity price movement. Belgaumi 2 (1995) in his study attempted to test whether the random walk hypothesis or weak from of efficient market hypothesis holds good in the Indian Stock Market. 70 companies were taken as sample in the A group of the Bombay

2 Stock Exchange during He concluded that share price behavior in the Indian stock market followed the random walk model. Hence the exchanges are weakly efficient in pricing their shares. Bhave 3 (1998) in his study pointed out that setting up of securities depositories will bring about a change in the capital market with significant impact for the banking industry. ANALYSIS: ASSOCIATION BETWEEN GENDER AND RISK OF INVESTING IN STOCK stock stock Risk of Gender Total Investing Male Female in Stock Volatility Risk Absolute Risk Total calculated value is less than the table value at the level of 5% significance. Hence the null hypothesis is accepted. Thus it can be inferred that there is a significant association between gender and risk of investing in stock ASSOCIATION BETWEEN GENDER AND LEVEL OF SATISFACTION between Gender and Level of Satisfaction between Gender and Level of Satisfaction Level of Gender Total Satisfaction Male Female Highly Satisfied Satisfied Neutral Dis-satisfied Highly Dissatisfied Total calculated value is less than the table value at the level of 5% accepted. Thus it can be inferred that there is a significant association between Gender and Level of Satisfaction. ASSOCIATION BETWEEN ANNUAL INCOME AND FINANCIAL PORTFOLIO Financial Portfolio Less than 2 Lakhs Annual Income Lakhs Lakhs Above 5 Lakhs Total Yes No Total

3 CALCULATED TABLE VALUE D.F VALUE calculated value is less than the table value at the level of 5% accepted. Thus it can be inferred that there is no significant association between annual income and financial ASSOCIATION BETWEEN ANNUAL INCOME AND KIND OF INVESTMENT between Annual Income and Kind of investment between Annual Income and Kind of investment Kind of Investm ent Less than 2 Lak hs Annual Income Lak Lak hs hs Abo ve 5 Lak hs Stock Bond Both Total T o t a l calculated value is less than the table value at the level of 5% rejected. Thus it can be inferred that there is a significant association between Annual Income and Kind of investment. FRIEDMAN RANKING TEST GRIEVANCES OF PRIMARY MARKET Factors of Mean Primary Market Issue made by Vanishing Companies Misleading advertisements Non-listing of securities Non-receipt of share certificate Non-receipt of allotment advice Non-receipt of refund orders in the primary market are ranked from 1 to 6. The test statistics is based on the following ranks in order such as Nonreceipt of refund orders, non-receipt of allotment advice, non-receipt of share certificate, misleading advertisements, issue made by vanishing companies and non-listing of securities. The result inferred that the respondents have ranked number 1 for Non-receipt of refund orders and Number 6 for Non-listing of securities. GRIEVANCES OF SECONDARY MARKET Secondary Market Factors Mean Order

4 Delay in Payment or Non-payment Arbitrary Commission Delay in delivery or non-delivery of share certificate Delay in non-receipt of contract note in the secondary market are ranked from 1 to 4. The test statistics is based on the following ranks in order such as Delay in non-receipt of contract note, Delay in delivery or non-delivery of share certificate, Arbitrary Commission and Delay in Payment or Non-Payment. The result inferred that the respondents have ranked number 1 for Delay in nonreceipt of contract note and Number 4 for Delay in Payment or Non-Payment. GRIEVANCES OF BROKER Factors of Broker Mean Delay in Payment or Non-payment Arbitrary Commission Delay in delivery or non-delivery of share certificate Delay in nonreceipt of contract note broker are ranked from 1 to 4. The test statistics is based on the following ranks in order such as Delay in non-receipt of contract note, Delay in delivery or nondelivery of share certificate, Arbitrary Commission and Delay in Payment or Non-Payment. The result inferred that the respondents have ranked number 1 for Delay in non-receipt of contract note and Number 4 for Delay in Payment or Non- Payment. FINDINGS: Chi Square stock. between gender and level of Satisfaction. There is no significant association between annual Income and kind of investment. Analysis For grievances of primary market, the respondents have ranked 1 for Non-receipt of refund orders and 6 for Non-listing of securities. For grievances of secondary market, the respondents have ranked 1 for Delay in non-receipt of contract note and 4 for Delay in Payment or Non-Payment. For grievances in Broker, the respondents have ranked 1 for Delay in non-receipt of contract note and 4 for Delay in Payment or Non- Payment. CONCLUSION: In Coimbatore majority of the Capital Market investors faced difficulties in fund investment and sought for grievance. Both small and large investor s complaint to their distributor/agent. Majority of the graduate investors sought these redressal measures. Regarding the attempt of investors in redressal, majority of the small investors attempt was negative, but the same time majority of the large investors are having positive experience. The

5 important factors regarding the opinion of investors towards grievance and redressal set up in capital market funds are rights and protection. This study clearly indicates that, the investors have a number of problems in capital market investment and majority of them are using the grievance and redressal measures properly, but the redressal measures are not effective. REFERENCES: [1] Ahmed Naseem Equity [2] [3] Price Behaviour and Bonus Issues. Delhi: Rajat Publications. Belgaumi, M.S. Efficiency of the Indian Stock Market: An Empirical Study. Vikalpa. Vol:20. No.2. April-June pp Bhave, C.B. Securities Depositories in India. In (Raj Kapila and Uma Kapila (Ed). 1998) pp