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Chapter Eight
SEBI’S PERFORMANCE: THE PERCEPTION OF BROKERS AND INVESTORS
In this chapter the perceptions of the brokers and investors has been presented. This was in
fulfillment of one the objectives of the required the study of brokers and investors’
perceptions about SEBI and its performance in the Indian apital !arket. "s a result# anattempt has been made to present the viewpoints of Brokers and investors on their perception
of the performance of SEBI. $or this purpose# data was collected from %&' brokers and (&
investors all of them located in the )udhiana Stock E*chan+e and its environs. Section " of
this chapter presents the survey of the apital !arket Intermediaries as re+istered members
of the Securities and E*chan+e Board of India ,SEBI-. Section B presents the survey of the
investors. Their views were e*pressed on a wide variety of issues concernin+ the apital
!arket re+ulator in India. Their views were carefully analysed and presented# usin+ fi+ures
and tables in this chapter.
There have not been any survey studies on this aspect# of SEBI# where both the brokers and
investors have been surveyed for their opinions. This research# however# represent the first
joint opinion survey of brokers and investors. It is necessary for SEBI to know and
understand how they feel. The fact that SEBI is out to serve them as participants of the
capital market warrants that# they are listened to. SEBI in attemptin+ to assess its
performance must receive input from the people bein+ served.
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Fig"!"-
N$'ber %& Part*er+
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
Tabe !"2: N$'ber %& Me'ber+
S. 9ender umber 0ercenta+e
!embers 8
% !ale 4' 62.1& ((.15
' $emale '6 %1.'5 ''.56
1 il 7esponses (2 6%.66
Total
%4% %&&.&& %&&.&&
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
The 0rivate ompany setup is presented in Table 4.1 showin+ the number of members
present. :ut of the %&5 members in the private limited companies 4' members are male#
makin+ a percenta+e rate of ((.158 and $emale members are '6# makin+ a percenta+e rate
of ''.568 ,see $i+. 4.1-.
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5
Fig"!"2
N$'ber %& Me'ber+
S%$r(e: Pri'ar) Data A*a)+i+ -../
In Table 4.6 the number of employees is stated as 6'1. This is an indication that apital
!arket employees’ composition is made up 44.43 8 bein+ male and the reminder# %%.%% 8
employees bein+ female. The Indian apital !arket is a male dominated society. )ookin+ at
the ratio between males and $emales in the workin+ environment the sole proprietor#
partnership business and the private company# one is forced to draw the conclusion that men
are risk takers. This means that the female members are more risk averse ,see $i+. 4.6-.
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Tabe !"3: N$'ber %& E'p%)ee+ i* the Fir'
S. 9ender umber 0ercenta+e
Employees8
% !ale 1(5 4(.66 44.43
' $emale 6( %&.31 %%.%%
1 il 7esponses ( %.51
Total
61& %&&.&& %&&.&&
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
Fig"!"3
N$'ber %& E'p%)ee+ i* the Fir'
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
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Tabe !"4: T)pe %& Capita Mar5et I*ter'e6iar)
S. Type of Intermediary umber 0ercenta+e
% !erchant Banker % &.42
' 7e+istrar and Transfer "+ent ' %.53
1 ;nderwriter
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Tabe !"7: N$'ber %& Cie*t C%'pa*ie+ &%r 8hi(h &ir' i+ I*ter'e6iar)
S. Type of ompany umber 0ercenta+e lients8
% !anufacturers '&5 4.63 4.23
' ?holesalers 32 1.3% 1.35
1 7etailers '&1% 41.54 46.(&
6 $orei+n International Investors &.&& &.&&
2 Service ompanies 55 '.(' '.(2
5 il 7esponses '3 %.%3
Tot
al
'6'( %&&.&& %&&.&&
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
Table 4.5 reveals a total of number of '134 clients for which the apital !arket
Intermediaries handle their operations. In the list of clients# the 7etailers are at the top with
46.(&8# followed by !anufacturers with 4.238 ,see $i+. 4.5-. )ookin+ at the situation of
Individual Investors# the fi+ures reveal that a total of %%#%6& ,see Table 4.5- are actively
involved in the Indian apital !arket investment. The fi+ures reveal that out of this number#
(4.3(8 are male and only '%.&1 bein+ women. "+ain women show evidence of risk
averseness in the Indian apital !arket ,see $i+.4.(-.
Fig"!"7
N$'ber %& Cie*t C%'pa*ie+ &%r 8hi(h &ir' i+ I*ter'e6iar)
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
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Tabe !"9: N$'ber %& I*6ii6$a I*e+t%r+
S. 9ender umber
0ercenta+e
Investors8
% !ale 4(3( (4.(3 (4.3(
' $emale '161 '&.33 '%.&1
1 il 7esponses '2 &.''
Total
%%%52 %&&.&& %&&.&&
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
Fig"!"9
N$'ber %& I*6ii6$a I*e+t%r+
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
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25
Tabe !"!: M%e'e*t %& I*6ii6$a I*e+t%r+
S. =irection umber
0ercenta+e
Ind. Investors
% Increasin+ 51 5%.(5 5(.&'
' =ecreasin+ 1% 1&.13 1'.34
1 o chan+e % &.34
6 il 7esponses ( 5.45
Tot
al
%&' %&&.&& %&&.&&
S%$r(e: Pri'ar) Data A*a)+i+ ,-../01 ; umber of 7esponses
)ookin+ at the movement in the direction of the apital !arket transactions# the primary
data analysis indicates that number of individual investors in recent years is increasin+ ,Table
4.4 and $i+. 4.4-. "s the trend in individual investors show an increase# the movement in
company or institutional investors shows a decreasin+ trend ,Table 4.3 and $i+. 4.3-.
Fig"!"!
M%e'e*t %& I*6ii6$a I*e+t%r+
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
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Tabe !"/: M%e'e*t %& (%'pa*) I*e+t%r+
S. =irection /umber
0ercenta+e
o. Investors 8
% Increasin+ %( %5.5( 16
' =ecreasin+ 11 1'.12 55
1 o chan+e ' %.35
6 il 7esponses 2& 63.&'
Total
%&' %&&.&& %&&
S%$r(e: Pri'ar) Data A*a)+i+ ,-../01 ; umber of 7esponses
Fig"!"/
M%e'e*t %& (%'pa*) I*e+t%r+
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
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Tabe !"#.: A++e++'e*t %& 'argi* (%*tr% +a&e
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26
Tabe !"##: Rea+%*+ &%r g%%6 'argi* (%*tr%
S. :pinion umber 0ercenta+e
% ontrol of hi+h volatility 5 5
' )ess default risk 3 3
1 $inancial safety and discipline 6' 6%
5 apital 0rotection for Brokers 6 6
( >ed+e a+ainst future losses 1 '
4 il 7esponses 14 14
Tot
al
%&' %&&
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
The mar+in control is necessary evil# it keeps the market stable# but at the same time it
reduces the operatin+ mar+ins of the market dealers. Table 4.%' and $i+. 4.%' present the
reasons why mar+in control is seen to be a bad device. >owever# the ar+uments for mar+in
control outwei+h the ar+uments a+ainst its operation.
Fig"!"##
Rea+%*+ &%r g%%6 'argi* (%*tr%
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
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Tabe !"#-: Rea+%*+ 8h) 'argi* (%*tr% i+ ba6
S. :pinion umber 0ercenta+e
% E*cess !ar+in % 2&
' o 0roper ?arnin+ Systems % 2&
1 il 7esponses
Total
' %&&
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
Fig"!"#-
Rea+%*+ 8h) Margi* C%*tr% i+ ba6
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
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Tabe !"#3: The E&&e(t %& the 'argi* +)+te' %& Tra6i*g %* B$+i*e++
S. =escription umber 0ercenta+e
% Aery Badly 1 '.36
' Badly ' %.35
1 "vera+ely 2% 2&.&&
6 ot at all 6& 13.''
2 il 7esponses 5 2.44
Tot
al
%&' %&&.&&
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
Fig"!"#3
The E&&e(t %& the 'argi* +)+te' %& Tra6i*g %* B$+i*e++
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S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
Tabe !"#4: Pr%be'+ C%*(er*i*g SEBI a+ a Capita Mar5et I*ter'e6iar)
S. "nswer umber 0ercenta+e
% es %5 %2.53
' o (4 (5.6(
1 il 7esponses 4 (.46
Total
%&' %&&.&&
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
The apital !arket Intermediaries indicate that most of them do not have any problems with
SEBI. (5.6(8 of the respondents indicated no problems# while %2.538 indicated that they
had problems and (.468 abstainin+ ,Table 4.%2 and $i+. 4.%2-
Fig"!"#4
Pr%be'+ C%*(er*i*g SEBI a+ a Capita Mar5et I*ter'e6iar)
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
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Tabe !"#7: Other SEBI Reate6 Pr%be'+ %& Capita Mar5et I*ter'e6iarie+
S. ature of problem umber 0ercenta+e
% "uction of shares ,0rice 7i++in+- % &.32
' >ed+in+ % &.32
1 Securities Transaction Ta* ,STT- % &.32
6 !ar+in and ross !ar+in % &.32
2 )en+thy client re+istration forms % &.32
5 o proper warnin+ systems 6 1.4%
( SEBI is =ictatorial ' %.3&
4 il 7esponses 36 43.2'
Total
%&2 %&&.&&
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
Fig"!"#7
Other SEBI reate6 Pr%be'+ %& Capita Mar5et I*ter'e6iarie+
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
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Table 4.%5 and $i+. 4.%5 reveals that even thou+h SEBI is doin+ its best in re+ulatin+ the
Indian apital !arket# there were still some shortcomin+s amon+st which the respondents
identified# amon+st them# the lack of an appropriate warnin+ system. "s shown on Table
4.%( and $i+. 4.%(# some of the respondents had some minor problems which needed
addressin+ by SEBI. Such problems were nonCpayment for shares# delistin+ of shares# nonC
transfer of shares# nonCrefund of Initial 0ublic :ffer ,I0:- money# sudden chan+es in mar+in
and poor accounts matchin+. Such +rievances were reported to SEBI individually. Aery few
were reported in batches ,Table 4.%4 and $i+. 4.%4-.
Tabe !"#9: Cie*t Pr%be'+ Re=$iri*g the A++i+ta*(e %& SEBI
S. ature of problem umber 0ercenta+e
% onCpayment for shares 2 6.3&
' =elistin+ of shares % &.34
1 onCtransfer of shares ' %.35
6 onCrefund of I0: money 6 1.3'
2 Sudden chan+es in !ar+in ' %.35
5 0oor "ccount matchin+ % &.34
( one %1 %'.(2
4 il 7esponses (6 ('.22
Tot %&' %&&.&&
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
Fig"!"#
9
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Cie*t Pr%be'+ Re=$iri*g the A++i+ta*(e %& SEBI
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
Tabe !"#!: The M%6e %& Rep%rti*g Pr%be'+ t% SEBI
S. !ode umber 0ercenta+e
% Individually 14 1(.'2
' In Batches %' %%.(5
1 il 7esponses 2' 2&.34
Total
%&' %&&.&&
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
Fig"!"#
!
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The M%6e %& Rep%rti*g Pr%be'+ t% SEBI
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
Tabe !"#/: The Nat$re %& SEBI’+ Re+p%*+e t% Pr%be'+
S. =escription umber 0ercenta+e
% Aery slow to react %2 %6.(%
' Slow to react '3 '4.61
1 Take immediate "ction %3 %4.51
6 o "ction taken ' %.35
2 il 7esponses 1( 15.'(
Total
%&' %&&.&&
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
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Fig"!"#/
The Nat$re %& SEBI’+ Re+p%*+e t% Pr%be'+
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
The majority of respondents believed that SEBI was slow to react to their problems. This fact
is revealed in Table 4.%3 and $i+. 4.%3. %6.(%8 of the respondents said that SEBI was very
slow to react to problems. '4.618 thou+ht that SEBI was slow to react and %4.518 revealed
that they received immediate reaction to their problems. The mi*ture of fastness and delays in
reaction indicated that SEBI carried out proper investi+ations before reactin+ to problems. "s
a result# SEBI is seen as an effective re+ulator of the Indian apital !arket ,Table 4.'& and
$i+. 4.'&-. 26.3&8 of the respondents thou+ht that SEBI is an effective !arket 7e+ulator#
while %5.5(8 thou+ht the opposite and '4.618 abstained.
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27
Tabe !"-.: Rati*g the E&&e(tie*e++ %& SEBI’+ Re+p%*+e t% C%'pai*t+
S. =escription umber
0ercenta+e
% Effective 25 26.3&
' ot effective %( %5.5(
1 il 7esponses '3 '4.61
Total
%&' %&&.&&
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
Fig"!"-.
Rati*g the E&&e(tie*e++ %& SEBI’+ Re+p%*+e t% C%'pai*t+
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
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Tabe !"-#: The T)pe %& S%$ti%*+ O&&ere6 b) SEBI t% C%'pai*t+
S.N Type Number0ercenta+e
1 Complete solution 311&.13
2 Partial solution 3411.11
3 None 3'.36
4 Nil Responses 3411.11
Tot 102%&&.&&
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
Fig"!"-#
The T)pe %& S%$ti%*+ O&&ere6 b) SEBI t% C%'pai*t+
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
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27
)ookin+ at the completeness of SEBI solutions to problems presented by apital !arket
Intermediaries# 1&.138 of the respondents said SEBI handled their problems and provided
complete solutions. 11.118 of them said they received only partial solution# '.368 of the
respondents received no solution at all and 11.118 of abstained ,Table 4.'% and $i+. 4.'%-.
oncernin+ problem lod+in+ and processin+ fee# 56.(%8 of the respondents said that no fee
was paid. %%.(58 of them said they had to pay for lod+in+ and processin+ of their problems#
while '1.218 of the respondents abstained ,Table 4.'' and $i+. 4.''-.
Tabe !"--: Pa)'e*t %& a Fee be&%re L%6gi*g a C%'pai*t 8ith SEBI
S. "nswer umber 0ercenta+e
% es %' %%.(5
' o 55 56.(%
1 il 7esponses '6 '1.21
Tot
al
%&' %&&.&&
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
Fig"
!"--
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27
Pa)'e*
t %& a
Fee be&%re L%6gi*g a C%'pai*t 8ith SEBI
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
SEBI re+ulates the activities of apital !arket Intermediaries as well as the companies
they represent. )ookin+ at the number of clients who had received warnin+s from SEBI
for the violation of rules and re+ulations# it was revealed that 5.4&8 of those who received
warnin+s were companies and &.3(8 of them were Institutional Investors. 11.&%8 of the
respondents’ clients had not received any warnin+ from SEBI# while 23.''8 abstained
,Table 4.'1 and $i+. 4.'1-.
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Tabe !"-2: N$'ber %& (ie*t+ 8h% hae Re(eie6 >ar*i*g+ &r%' SEBI &%r the
Vi%ati%* %& R$e+ a*6 Reg$ati%*+
S. =escription umber
0ercenta+e
% ompanies ( 5.4&
' Institutional investors % &.3(
1 Institutional forei+n investors &.&&
6 one 11 11.&%
2 il 7esponses 5% 23.''
Tot
al
%&' %&&.&&
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
Fig""!"-2
N$'ber %& (ie*t+ 8h% hae Re(eie6 >ar*i*g+ &r%' SEBI &%r the Vi%ati%* %& R$e+a*6 Reg$ati%*+
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
In total# only 48 of the respondents’ clients had received warnin+s# that is# (.468 of the
respondents. 62.%&8 had no warnin+# while 6(.&58 abstained ,Table 4.'6 and $i+. 4.'6-.
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Tabe !"-3: N$'ber %& 8ar*i*g+ re(eie6 b) the &ir'+ &r%' SEBI &%r i%ati%* %& R$e+ a*6
Reg$ati%*+
S. "nswer umber 0ercenta+e
% es 4 (.46
' o 65 62.%&
1 il 7esponses 64 6(.&5
Total
%&' %&&.&&
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
Fig""!"-3
N$'ber %& 8ar*i*g+ re(eie6 b) the &ir'+ &r%' SEBI &%r i%ati%* %& R$e+ a*6
Reg$ati%*+
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
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Tabe !"-4: N$'ber %& Cie*t+ 8h% hae Re(eie6 ?$6g'e*t+ &r%' SEBI &%r C%'pai*t+
L%6ge6
S. =escription umber 0ercenta+e
% Individual Investors 24 6&.42
' Institutional Investors 1 '.%%
1 Institutional $orei+n Investors &.&&
6 one 1% '%.41
2 il 7esponses 2& 12.'%
Total %6' %&&.&&
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
Table 4.'2 reveals the number of clients who had received jud+ment concernin+ complaints
lod+ed with SEBI. It reveals that 6&.428 of respondents received jud+ments for and on
behalf of individual investors. '.%%8 of respondents received jud+ment for and on behalf of
institutional investors. '%.418 of respondents did not receive any jud+ment and 12.'%8 of
the respondents abstained ,$i+. 4.'2-.
Fig""!"-4
N$'ber %& Cie*t+ 8h% hae Re(eie6 ?$6g'e*t+ &r%' SEBI &%r C%'pai*t+ L%6ge6
8/18/2019 Sebi’s Performance the Perception of Brokers and Investors
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S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
Tabe !"-7: The Nat$re %& ?$6g'e*t A((%r6e6 t% Cie*t+ b) SEBI
S. =escription umber 0ercenta+e
% $avourable '4 '(.62
' ot favourable 5 2.44
1 il 7esponses 54 55.5(
Total
%&' %&&.&&
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
'(.628 of the respondents revealed that the jud+ments received from SEBI were favourable#
while only 2.448 of the jud+ments received were not favourable. " total of 55.5(8 of the
respondents abstained ,Table 4.'5 and $i+. 4.'5-.
Fig" !"-7
The Nat$re %& ?$6g'e*t A((%r6e6 t% Cie*t+ b) SEBI
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
The research reveals that the presence of SEBI in the Indian apital !arket has made the
Indian apital !arket a much improved place for securities’ tradin+. 64.&68 of the
8/18/2019 Sebi’s Performance the Perception of Brokers and Investors
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respondents indicated that there is much improvement# with 16.1%8 of the respondents
havin+ a view that the presence of SEBI just avera+ely improved securities’ tradin+. 1.3'8
of respondents believe that there has been no improvement# with %1.(18 abstainin+ ,Table
4.'( and $i+. 4.'(-.
Tabe !"-9: The E&&e(t %& the Pre+e*(e %& SEBI i* the I*6ia* Capita Mar5et
S. :pinion umber 0ercenta+e
% !uch improvement 63 64.&6
' "vera+ely improved 12 16.1%
1 o improvement 6 1.3'
6 il 7esponses %6 %1.(1
Total
%&' %&&.&&
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
Fig" !"-9
The E&&e(t %& the Pre+e*(e %& SEBI i* the I*6ia*
Capita Mar5et
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
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Tabe !"-!: Rea+%*+ &%r M$(h I'pr%e'e*t
S. 7easons umber 0ercenta+e
% Transparency %3 '2.11
' Screen based tradin+ 2 5.5(
1 o defaulters for many years 2 5.5(
6 $low of forei+n investment % %.11
2 TD' settlement system 1 6.&&
5 Effective mar+in system 1 6.&&
( il 7esponses 13 2'.&&
Total
(2 %&&.&&
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
Fig"!"-!
Rea+%*+ &%r M$(h I'pr%e'e*t
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
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28
Table 4.'4 provides the reasons why the respondents think the Indian apital !arket has
+ained much improvement due to the presence of SEBI. "mon+st other services like Screen
based tradin+# the TD' settlement system and effective mar+in system# transparency came
first with a '2.118 of respondents pinpointin+ it as very necessary ,$i+. 4.'4-. >owever# the
respondents who feel that the presence of SEBI has only avera+ely improved the India
apital !arket has these to say %%.618 believed that SEBI is very slow in its reaction to
situations. %%.618 are of the opinion that SEBI is there only for lar+e companies# while
4.2(8 complaint about poor information dissemination. The majority# 54.2(8 of the
respondents did not make any comment ,Table 4.'3 and $i+. 4.'3-.
Tabe !"-/: Rea+%*+ &%r Aerage I'pr%e'e*t
S. 7easons umber
0ercenta+e
% Aery slow reaction 6 %%.61
' Benefits only lar+e firms 6 %%.61
1 Information flow is slow 1 4.2(
6 il 7esponses '6 54.2(
Total
12 %&&.&&
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
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Fig" !"-/
Rea+%*+ &%r Aerage I'pr%e'e*t
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
Tabe !"2.: Rea+%*+ &%r N% I'pr%e'e*t
S. 7easons umber 0ercenta+e
% o "ction taken on complaints % '2
' il 7esponses 1 (2
Total
6 %&&
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
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28
Fig"!"2
.
Rea+%*+ &%r N% I'pr%e'e*t
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
:nly one respondent was of the opinion that the presence of SEBI has not brou+ht with it any
improvement. This was a subjective rather than an objective view of the a++rieved persons
,Table 4.1& and $i+. 4.1&-. =espite this# most of the respondents were of the opinion that
SEBI was doin+ a job.
:n ratin+ the services of SEBI in its capacity as the Indian apital !arket 7e+ulator# %5.5(8
of the respondents were of opinion that SEBI was handlin+ the Indian apital !arket in a
very +ood way# that is# the proper formulation of apital !arket 7ules and 7e+ulations
,policies-. 15.'(8 of the respondents were of the opinion that SEBI’s services in the
8/18/2019 Sebi’s Performance the Perception of Brokers and Investors
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formulation of apital !arket policies were +ood services yieldin+ +ood results ,Table 4.1%
and $i+. 4.1%-. :n the whole# therefore# 2'.368 of respondents appreciated the services of
SEBI as +ood and necessary for the smooth runnin+ of the Indian apital !arket.
Tabe !"2#: Rati*g %& the +eri(e+ %& SEBI i* &%r'$ati*g Capita Mar5et P%i(ie+
,R@R0
S. 7atin+ umber 0ercenta+e
% Aery +ood %( %5.5(
' 9ood 1( 15.'(
1 "vera+e '( '5.6(
6 $air ' %.35
2 0oor 6 1.3'
5 il 7esponses %2 %6.(%
Total
%&' %&&.&&
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
Fig" !"2#
Rati*g %& the Seri(e+ %& SEBI i* &%r'$ati*g Capita Mar5et P%i(ie+ ,R@R0
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
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:n ratin+ the services of SEBI in the handlin+ of investors’ complaints# %&.(48 of the
respondents stated that SEBI provided very +ood services# while '6.2%8 thou+ht that the
services are +ood. This means that a total of 12.'38 of respondents appreciate the work done by SEBI in the Indian apital !arket in handlin+ of investors’ complaints. >ere
13.''8 of the respondents were of the opinion that SEBI’s services of handlin+ investors’
complaint can only be rated as avera+e# '%.2(8 of the respondents abstained ,Table 4.1'
and $i+. 4.1'-.
Tabe !"2-: Rati*g %& the Seri(e+ %& SEBI i* the Ha*6i*g %& i*e+t%r+’ C%'pai*t+
S. 7atin+ umber 0ercenta+e
% Aery +ood %% %&.(4
' 9ood '2 '6.2%
1 "vera+e 6& 13.''
6 $air ' %.35
2 0oor ' %.35
5 il 7esponses '' '%.2(
Total
%&' %&&.&&
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
Fig"!"2
-
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Rati*g %& the Seri(e+ %& SEBI i* the Ha*6i*g %& i*e+t%r+’ C%'pai*t+
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
Tabe !"22: The a6e=$a() %& SEBI’+ R$e+ a*6 Reg$ati%*+ i* hepi*g the i*e+t%r+ t%
+%rt
%$t their i*e+t'e*t 6i&&i($tie+"
S. :pinion umber 0ercenta+e
% Aery adequate %( %5.5(
' $airly adequate 6( 65.&4
1 ot adequate %4 %(.52
6 il 7esponses '& %3.5%
Total
%&' %&&.&&
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
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Fig"!"22
The a6e=$a() %& SEBI’+ R$e+ a*6 Reg$ati%*+ i* hepi*g the i*e+t%r+
t% +%rt %$t their i*e+t'e*t 6i&&i($tie+
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
Tabe !"23: SEBI + 'ea*+ %& E6$(ati*g the I*e+t%r+ a+ t% their
Right+ a*6 Obigati%*+
S. :pinion umber 0ercenta+
e% Seminars 2% '2.(5
' 0ress 7eleases 15 %4.%4
1 ewspapers 13 %3.(&
6 Television 12 %(.54
2 7adio %& 2.&2
5 othin+ 3 6.22
( il 7esponses %4 3.&3
Total
%34 %&&.&&
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
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:n the adequacy of SEBI’s 7ules and 7e+ulations in helpin+ the investors to sort out their
investment difficulties# %5.5(8 of the respondents thou+ht that SEBI was very adequate.
65.&48 thou+ht that SEBI was fairly adequate# %(.528 of the respondents thou+ht that SEBIwas not adequate and they were %5.5%8 abstained ,Table 4.11 and $i+ 4.11-.
The research revealed that SEBI was embarked in the process of educatin+ investors on their
ri+hts and obli+ations# when dealin+ with the apital !arket. The respondents su++ested that
investor education should be done throu+h the or+aniFin+ of seminars. This was closely
followed be the newspapers with %3.(&8 and press releases came third with %4.%48 rankin+
,Table 4.16 and $i+. 4.16-
The respondents advised the 9overnment of India to +ive SEBI more powers# both judicial
and administrative. 65.&48 of respondents advocated for more powers ,Table 4.12 and $i+.
4.12-. The +ivin+ of more powers to SEBI meant that its verdicts should be final and not
contended or repealed by any court of law.
Fig" !"23
SEBI+ 'ea*+ %& E6$(ati*g the I*e+t%r+ a+ t% their Right+ a*6 Obigati%*+
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
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Tabe !"24: Epert A6i(e t% the G%er*'e*t %& I*6ia ab%$t SEBI
S. "dvice umber 0ercenta+e
% Suspend its "ctivities 1 '.36
' 9ive it more powers 6( 65.&4
1 )et it stay as it is. 1' 1%.1(
6 il 7esponses '& %3.5%
Total
%&' %&&.&&
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
Fig" !"24
Epert A6i(e t% the G%er*'e*t %& I*6ia ab%$t SEBI
S%$r(e: Pri'ar) Data A*a)+i+ ,-../0
The above analysis has presented the survey from the capital market brokers. They have
clearly e*pressed their perceptions as to the performance of SEBI# in its capacity as the
capital market re+ulator
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SECTION B
INVESTORS’ PERCEPTION REGARDING THE PERFORMANCE OF SEBI IN
THE INDIAN CAPITAL MARKET
The precedin+ analyses presented the Stock Brokers’ survey about SEBI. Section B of this
chapter presents the survey of investors as consumers of the Securities and E*chan+e Board
of India ,SEBI- services. Their views have been e*pressed on a wide variety of issues
concernin+ their investment activities in the Indian apital !arket. Their views were
carefully analysed and presented# usin+ fi+ures and tables as seen below
Tabe !"27: D$rati%* %& Deai*g i* the I*6ia* Capita Mar5et ,I*e+t%r+0
S. =uration 7espondents 0ercenta+e ,8-
% % to ' years 16 64.2(
' 1 to 6 years %3 '(.%6
1 2 to 5 years 6 2.(%
6 5 to %& years 2 (.%6
2 !ore than %& years ( %&.&&
5 il % %.61
Total (& %&&.&&
S%$r(e: Fie6 A*a)+i+ ,-../0
Table 4.15 reveals that only %&8 of Investors had been investin+ in the Indian apital
!arket for more than %& years. (.%68 of Investors had been dealin+ in the !arket for %&
years# 2.(%8 for 5 years# '(.%68 for 6 years and 64.2(8 for ' years ,see $i+. 4.15-.
8/18/2019 Sebi’s Performance the Perception of Brokers and Investors
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2
Fig"!"2
7
D$rati%* %& Deai*g i* the I*6ia* Capita Mar5et ,I*e+t%r+0
S%$r(e: Fie6 A*a)+i+ ,-../0
Tabe !"29: Area %& the Capita Mar5et i* 8hi(h the I*e+t%r ha+ I*e+t'e*t
S. =etails 7esponses
0ercenta+e8
% 0S; Bonds % &.41
' Equity Shares 56 21.11
1 =erivatives 2 6.%(
6 )ife Insurance %( %6.%(
2 =ebenture Stock 1 '.2&
5 Savin+s Bonds 5 2.&&
( !utual $unds '% %(.2&
4 "ny other & &.&&
3 il 1 '.2&
Total %'& %&&.&&
S%$r(e: Fie6 A*a)+i+ ,-../0
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There are a variety of products in the Indian apital !arket. Table 4.1( reveals that most
investors preferred to invest in Equity Shares. 21.118 of investors preferred to invest in
Equity Shares. The second most preferred product was the !utual $unds# with %(.2&8 and
the third was )ife Insurance# with %6.%(8 ,see $i+.4.1(-. Equity shares are easily
transferable and they are therefore# attractive to many investors. SEBI is there to oversee that
the market moves smoothly and investors’ interest well protected.
Fig"!"29
Area %& the Capita Mar5et i* 8hi(h the I*e+t%r ha+ I*e+t'e*t
S%$r(e: Fie6 A*a)+i+ ,-../0
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2
Tabe !"2!: A'%$*t %& C$rre*t I*e+t'e*t i* the I*6ia* Capita Mar5et
S. "mount 7espondents 0ercenta+e8
% 7s 2#&&& G 2&&& %3 '(.%6
' 7s 2&&& G %&&&& %( '6.'3
1 7s %&&&& G %2&&& %& %6.'3
6 7s %2&&& G '&&&& %5 ''.45
2 7s '&&&& G '2&&& 6 2.(%
5 7s '2&&& and "bove 1 6.'3
( il % %.61
Total (& %&&.&&
S%$r(e: Fie6 A*a)+i+ ,-../0
The research revealed that on avera+e# investors in the Indian apital !arket had an avera+e
investment of 7s %# &&&&. " detailed analysis showed that 2.(%8 of investors own
investment of up to 7s '# 2&&& in the apital !arket# ''.458 of investors own investment
of up to 7s '#&&& %6.'38 own investment of up to 7s %#2&& '6.'38 own investment
of up to 7s %#&&&& and '(.%68 own investment of up to 7s 2&&& ,see Table 4.14 and
$i+.4.14-.
Fig"!"2
!
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2
A'%$*
t %&
C$rre*t I*e+t'e*t i* the I*6ia* Capita Mar5et
S%$r(e: Fie6 A*a)+i+ ,-../0
Tabe !"2/: I*e+t%r+’ K*%8e6ge %r hae Hear6 ab%$t SEBI
S. 7esponse 7espondents 0ercenta+e,8-
% es 52 3'.45
' o 2 (.%6
1 il & &.&&
Total (& %&&.&&
S%$r(e: Fie6 A*a)+i+ ,-../0
Table 4.13 reveals that 3'.458 of the investors have heard about SEBI ,see $i+.4.13-. They
understood the role of SEBI and why it was in e*istence.
Fig" !"2/
I*e+t%r+’ K*%8e6ge %r hae Hear6 ab%$t SEBI
S%$r(e: Fie6 A*a)+i+ ,-../0
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was the 7e+ulator of the Indian apital !arket. Aery few of them doubted the e*istence of
the 7e+ulator ,see $i+.4.6&-.
Fig"!"3.
The P%+iti%* he6 b) SEBI i* the I*6ia* Capita Mar5et
S%$r(e: Fie6 A*a)+i+ ,-../0
Tabe 3"3#: Opi*i%* 8hether it i+ Ne(e++ar) t% hae SEBI i* the I*6ia*
Capita Mar5et
S. 7esponse 7espondents 0ercenta+e,8-
% es 24 4'.45
' o %% %2.(%
1 il % %.61
Total (& %&&.&&
S%$r(e: Fie6 A*a)+i+ ,-../0
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!ost investors stated that in their opinion# it was necessary to maintain SEBI in the Indian
apital !arket as the 7e+ulator. This fact was revealed in Table 4.6% and $i+. 4.6%. It was an
indication that SEBI was doin+ its best to protect the investors and also re+ulatin+ the Indian
apital !arket as required ,see also Table 4.6' and $i+. 4.6'-.
Fig"!"3#
Opi*i%* 8hether it i+ Ne(e++ar) t% hae SEBI i* the I*6ia* Capita Mar5et
S%$r(e: Fie6 A*a)+i+ ,-../0
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Tabe !"3-: Rea+%* t% hae SEBI i* the I*6ia* Capita Mar5et
S. :pinion 7espondents 0ercenta+e8
% To solve problems and Eliminate
$ake Brokers
% %.61
' $ulfill Investors’ Transaction % %.61
1 To 7e+ulate and protect Investors %4 '2.(%
6 >elpful in the Investment ?orld ' '.45
2 0rovides an easy way of Tradin+ % %.61
5 $or 9rowth# ontrol and functionin+ ofthe market
1 6.'3
( It takes all necessary steps to re+ulatethe E*chan+e SE and BSE
' '.45
4 To check insider tradin+ % %.61
3 To check $raud % %.61
%& ontrols the market and eyes on
Stock E*chan+e
' '.45
%% Investors "wareness of !arket % %.61
%' To Educate the Investors and Brokers % %.61
%1 il 15 2%.61
Total (& %&&.&&
S%$r(e: Fie6 A*a)+i+ ,-../0
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