Impact of Stock Market Reforms on Investors’ Confidence and Behaviour in Indian Stock Market: A Case Study of Tamil Nadu

Abstract

This paper examines the impact of stock market reforms on investors’ confidence and behaviour in Indian stock market. The research design applied for the study is analytical and descriptive in nature. Both the primary and secondary data were used in this study. The primary data were collected from investors of Indian securities market covering 10 city corporations of Tamil Nadu. Cronbach alpha test, Split - half reliability test, Confirmatory Factor Analysis (CFA), Content and Construct Validity were applied to ensure the validity and reliability of data collection instrument. Primary data were analysed using Structural Equation Modeling (SEM). It is suggested that the regulating body may take suitable measures to consider these 12 statements while designing investors’ educational programme with respect to these 12 variables is vital to enhance investors’ confidence towards stock market reforms. Suitably designed educational programme will instil confidence among the investors with respect to stock market reforms in Indian securities market. High level of confidence will help the investors to take right investment decisions at right time.