Are Investors Participating in Indian Stock Market? - A Survey of Mumbai Commerce

The economic liberalization process undertaken by the Indian government during early 1990s has opened up new dimensions for Indian economy. The Indian capital market especially stock market has achieved new heights with the implementation of liberalized reforms. Since then the stock market has grown in leaps and bounds. Despite of such robust growth of stock market, participation of retail investors is minimal. In this paper a survey was undertaken in five cities of India to assess participation of retail investors. Indian retail investors still prefer traditional forms of investment like Bank Fixed Deposits, Post office savings, National Saving Certificates etc. Indian stock market remains to be dominated by Foreign Institutional investors and Domestic Institutional Investors. To counter affect such, it is necessary that domestic retail investors should participate more in the Indian Stock Market.