1. Student Research Project
Batch 2019 – Bachelor of business administration
Centurion university of technology and management
Dr. Debi prasad satapathy
Centurion university of technology and management
The primary market is the part of the capital market that deals with the
issuance and sale of equity backed securities to investors directly by the issuer.
The primary market is the part of the capital market that deals with issuing of
Companies’ governments or public sector institutions can obtain funds through
the sale of a new stock or bond issues through primary market. This is typically
done through an investment bank or finance syndicate of securities dealers.
Primary Market also known as New Issue Market is concerned with the issue
of new securities. It provides opportunity to issuers of securities Government
and corporate entities to raise resources to meet their requirements of
investment or discharge some obligation. The issuers create and issue fresh
securities in exchange of funds. the funds are collected and securities are
issued directly by the company to the investors.
Securities can be issued at face value or premium discount and can take a
variety of forms such as equity, debt or some hybrid instruments. The issuers
may issue securities in domestic market as well as international market.
The past twenty-five years have witnessed a process of accelerating change in
the world’s financial markets. Driven by an interacting process of liberalization
and innovation, regulations have been removed, new product have emerged
and old boundaries between financial intermediaries have been blurred. At the
same time, growth of capital markets have posed new challenges to economic
and financial stability. The role of Indian capital market which is to provide long
term resources required by industries for investment has observed buoyancy in
share market with the liberalization of industries and fiscal policies of the
government. Finance, the lie blood of industry is mobilized especially through
New Issue Market or Primary Market.
4. LITERATURE REVIEW
Many organizations and individuals conducted several studies on the various
aspects of the capital markets in the past. These studies were mainly related to
various instruments of capital market, shareholding pattern, new issue market
and scope, market efficiency, risk and return, performance and regulation of
mutual funds however, not much of research was done on investment,
patterns and investors, perceptions.
hence an attempt is made to review. some of the studies relevant to the topic
in order to get into in depth details of the chosen study. Jaakko (2011) study
revealed that most investors had affected based extra motivation to invest in
stock. over and beyond financial return expectations. zaghlami (2009) study
revealed that some psychological particularities that are not expected by the
financial behavioural literature& the study were conducted on Tunisian
investors. Mahendra (2008) study stated that irrational investment decision
making is a widespread phenomenon
They study the perils of irrational decision-making in investments choice which
finally can lead to great risk. Verma, (2008) identified the demographic, profile
and investor personality can be the two determinants for making, perception
about the investor psychology& which if scientifically studied could help the
wealth Management professionals to advice their clients better. commins
(2009) in their article discussed the hedonistic psychology of investors.
It cites that the pursuit of happiness becomes hedonistic when people want to
get the most of their investment and gaining health is no longer confining that
one becomes overly materialistic. The study conducted by SCMRD for Ministry
of company affairs (2004) found that majority of the retail investors do not
regard mutual fund equity schemes as a superior investment compared to
kent (1998) developed a theory of securities market under- and overreactions
based on two well-known psychological biases: investor overconfidence about
the precision of private information; and biased self-attribution, which causes
asymmetric shifts in investors’ confidence as a function of their investment
outcomes. SEBI (1998) survey revealed that Risk appetite& investment
objective of the investor& income of the investors& funds available for
investment& greatly influences the behaviour of the investor in corporate
securities at various levels.
5. MEANING OF PRIMARY MARKET:
New Issues Market is that part of capital market where dealing exchanges takes
the boundaries de-marketing the financial services are fast
OBJECTIVES OF THE PROPOSED STUDY
1.To know about Investor’s preference for different sectors or different
2.To know about factors which affect while making decision in any new primary
3.To find out the sources which are major sources of info to investors.
4.Effect of Recent developments in primary market
The procedure or conducting the study requires a lot of
attention to be paid, for it has a direct bearing on side is
the banking sector, which is traditionally, known to be
more competitive, an the other is insurance sector,
which has vast untapped potential of growth. When
these two sectors joint, the result will be
bancassurance. Perhaps a decade ago, majority of the
financial institutions would not have dream about
integrating the two big areas to create separately
mentioned in this study.
7. How much return has been earned by you from
%age of return No of respondents
10-50 % 45
50-100 % 10
100-150 % 12
150-200 % 5
Resposary market investment is risky there is a fear in the
mind of respondents about to invest in primary market.
The study shows that maximum respondents among the
sample respondents are getting information related to the
different services from the agents. It implies that most
powerful source of information about services is an agent.
There is a need to bring awareness among the general public
about primary market.
This project is based on the study of Investors attitude
towards, primary market. In the today scenario it’s very
important to study the customer’s psychological
behaviors regarding the various services provided by
In the end, I conclude that investor should not invest
their hard-earned money blindly in the but they should
invest their money by taking different safeguards life
understand the company business, who its promoter
are& how is its management& its risk factor and pricing
of the issue etc.
Although there is SEBI to protect the investor but he
company which follow the legal binding of the SEBI is
not fool proof that the company is a good one.
It has been concluded that on the one hand the
customers are somewhat satisfied but on the other
hand& still some improvements are required. so, the
broking companies’ segment is flooded with the new
schemes from new & existing players and moreover&
lot many schemes are waiting to hit the ramp in the
10. The main reason behind people not wanting to have
investing of a particular company is the lack of proper
information. Moreover, people don’t want to come out
of cocoon of their seemingly uncomplicated life. They
seem satisfied with their old days and are wary of
modern. new age products.
The most important factor that attracts the people
towards investment in primary market is the
communication factor. This is the most important
reason and for this, people feel persuaded to buy it