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ISSN 2063-5346
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IMPACT OF STOCK MARKET FRAUDS ON TRUST OF RETAIL INVESTORS: A SURVEY BASED ANALYSIS OF STOCK MARKET

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Dr. Anand Muley1 , Ashay Anand2 , Dr Richa Agrawal3 , Devasish Hazarika4
» doi: 10.48047/ecb/2023.12.9.220

Abstract

The stock markets in India are vulnerable to a variety of frauds that could harm regular investors. Insider trading is a prevalent type of fraud in which those with access to information that is not generally known utilize it to earn money off other people's money, taking advantage of ordinary investors. The fairness and integrity of the market are threatened by this kind of fraud, which also erodes investor confidence. Market manipulation is another sort of fraud, in which individuals or groups intentionally raise or deflate stock prices to give the impression that the market is active. Due to the manipulation of the information, this may lead retail investors to make bad investment judgements. Retail investors in India are severely impacted by frauds like this. They may lead to substantial financial losses, broken market confidence, and a reluctance to take advantage of upcoming investment possibilities. Further magnifying the effects of these frauds are the difficulties that retail investors may have in pursuing legal action or collecting their invested money. To safeguard the interests of retail investors and uphold the credibility of India's stock markets, regulators and market participants must be diligent in identifying and combating such frauds. 175 participants were considered as the sample size for the study. To find the outcome T test and Mean were applied.

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