2. Organised Market & Retail Investor
• Retail Investor is a basic
requirement of an
organised market
• More important for
securities market than
foreign exchange or
commodities exchange
where trade creates
independent demand
• Contrarian opinion for a
Stable Market
• A Naturally Ready Market
• Retains Long Term concept
of investment in equity
shares
4. Requirement to Retain Retail
Investors
• Stable Regulations
• Simplicity of Regulations
• Focus on Investor & Not
Technology
• No Plagiarism of Western
Models
• Institutions Secondary
• Profitability of FIs
• KYC Contradiction
• Active Primary Market
• Democratic Set-Up
5. SEBI &
Primary Market
• Sophistication than Access
• Mindless Free Pricing (Reliance
Power, SKS Microfinance)
• IPOs became Wealth
Destroyers
• Discarding CCI Formula
6. SEBI & Financial Intermediaries
•
•
•
•
•
Over-regulation
Ever-Changing & High Volume Rules
Should Save its Time in Identifying Market Manipulators
Rendering their Business Unprofitable
Closure of Many FIs including Corporate Stock Brokerage
7. SEBI & Stock Exchange
Falling Retail Participation
Year
Percentage of Retail as a Percentage of
Total Sales
2013
34.31
2012
47.29
2011
47.75
2010
56.21
2009
65.30
2008
55.66
2007
55.51
2006
67.20
2005
73.83
2004
75.46
2003
83.58
Source: BSE & Brokerage Websites
8. Imperfections of Stock Market
•
•
•
•
•
•
•
Circular Trading
Day Trading
Role of Analysts
Domination of Institutions
Media’s Hype
Role of FIIs
Too Much of Global
Cues
• Technical Analysis
• Favourite Games
9. Agenda for Reversal
•
•
•
•
•
•
•
•
•
•
Intense Stockwatch
Banning Free Pricing of IPO (Related to Book Value)
Study of Viability of Fis
Workable KYC Norms
No Quarterly Financial Reporting
Limited Financial Reporting sent in Hard Copy
IPOs by Firm Price Offer
Offer for Sale also by Firm Price Offer
Stopping Revenue Guidance
Banning Technical Analysis
