Retail Investors’ Participation in Indian Stock Markets: Trends and Determinants
Abstract
Retail investor participation in the Indian stock market has witnessed unprecedented growth during the last decade, particularly after the COVID-19 pandemic. The rapid expansion of demat accounts, digital trading platforms, financial literacy initiatives, and favorable regulatory reforms have transformed India’s equity market landscape. This paper examines the trends and determinants of retail investor participation in Indian stock markets using secondary data obtained from SEBI reports, NSE publications, Economic Surveys, and published research. The study employs behavioral finance theory and market participation theory to develop a conceptual framework explaining retail investor behavior. Findings indicate that technological advancements, rising disposable incomes, financial awareness, social media influence, and regulatory support are the major drivers of retail participation. The paper concludes that while increased participation contributes to market depth and financial inclusion, concerns regarding speculative trading and investor protection remain important policy issues.
Authors
Dr. Nidhi Shekhar, Anup Chaurasiya, Areesha Khan, Apurva Shahi, Asifa Jamal
Institution
NIET Business School, Greater Noida
Leave A Comment