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Primary Market Transformation: The Net Effect of Reforms

  • Parimala Veluvali
Chapter
Part of the Advances in Theory and Practice of Emerging Markets book series (ATPEM)

Abstract

Retail investor protection requires a comprehensive strategy, conceptualized and administered by the regulators and policymakers through timely reforms and legislative interventions. While primary market reforms in India have been an ongoing endeavour, there has been a renewed emphasis in the recent past on reforming the market keeping the retail investors in focus. The present chapter provides a stock taking of the reforms that have been instrumented by the Securities and Exchange Board of India (SEBI) with the objective to make the market for public offerings, investor friendly. Since its inception, SEBI has brought in far-reaching changes in the primary market with the sole intent of streamlining the issue process, reducing volatility and encouraging more retail participation. Improved market infrastructure coupled with greater transparency through disclosures, streamlined procedures, ease of trading, protective measures and effective enforcement have created a conducive environment for small investors to participate. By drawing upon existing works, circulars and annual reports of SEBI, the chapter reviews these measures to the extent that they have been made with emphasis on the retail investor.

Keywords

Reforms Primary market SEBI Regulatory interventions Retail Investor 

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Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  • Parimala Veluvali
    • 1
  1. 1.Symbiosis Centre for Management StudiesSymbiosis International (Deemed University)PuneIndia

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