This study investigates the impact of recent regulatory changes introduced by the Securities and Exchange Board of India (SEBI) on retail investor participation in the Indian capital market. Focusing on a sample of 100 retail investors, the research analyses shifts in investment behaviour, trading frequency, and investor confidence before and after the 2021 regulatory amendments. The findings reveal significant increases in average monthly investment, trading frequency, and investor confidence post-regulation, highlighting the positive influence of a well-structured regulatory framework on retail investor engagement. However, the variability in responses suggests that the effects of these regulations are not uniformly experienced, indicating a need for more targeted and nuanced regulatory strategies. The study concludes with recommendations for future regulatory initiatives, emphasizing the importance of financial literacy programs, continuous monitoring of regulatory effectiveness, and tailored approaches to address the diverse profiles of retail investors.
Lawrence et al. (Wed,) studied this question.
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