INVESTOR PROTECTION IN INDIA AND UK – COMPARATIVE STUDY

Abstract

Investor Protection is the most relevant factor in the securities Market. The echo of investor protection is about the amount of informed knowledge the investors are getting before doing any kind of investment. The regulator claims Investor Protection, but they must check that the investors should be fully informed about their purchases, transactions, and affairs with issuers. The Law created by the government and various authorities should not only be sufficient but should also be implemented in an effective way. 

Investor confidence is the requirement of the vibrant capital market. And this confidence of the investors is created by an efficient regulator of the capital market. A wealthy investor should take the right choice in the securities market for which there will be sufficient capital formation in the economy. So, the role of the regulator in the capital market is created to enhance the investor confidence through various rules, regulations, education, and awareness in the market.

Though both countries like India and the United Kingdom differs from many aspects, India has adopted many laws of the United Kingdom and implemented for the upliftment of the country. This article first describes the historical background of law relating to Investor protection in the financial market of India and the United Kingdom. It also describes the current regulator and what steps are being taken to protect the interests of investors by both countries. The comparison also describes the grievances cell for the investors and the awareness they create about the investment they do in the financial market. If an investor is aware of its risk, rules and regulation in the country it can be well protected. The comparison also identifies the significance of Investor awareness and education towards the risk of investment they are making in the securities market.