A Study On Initial (Listing) Returns Provided By Initial Public Offerings

Abstract

Indian capital market has witnessed a drastic development as a result of economic liberalisation in the country since 1991. This includes abolishing the regulated regime under the Controller of Capital Issues (CCI) and establishing the Securities and Exchange Board of India (SEB[) as the market monitor in 1992. The technological advancements in the stock market, improved trading process, strict regulatory controls, enlarged investor base has brought a new environment of stock investment in India, likely to develop in the future also. Investors perceive Indian capital market, whether local or global, as a new investment opportunity to earn high returns. The research statistics have proven that in the Indian financial markets, equity instruments provide higher returns in long period as compared to other traditional forms of investments such as fixed deposits and gold etc. Thus there has been a continuous increase in the tendency of investors to make investments in equity by taking more risk in order to earn superior returns from the stock market. Capital market is considered as the best op port unity to fulfil the dreams of retail investors.