Annexure- A Questionnaire for Investors Tick [ ] wherever applicable A. PERSONAL DETAILS Name (Optional). Address... City:.Dist.:..State:... Phone: Mobile.Email:. Occupation: [ ] Student [ ] Shopkeeper [ ] Service [ ] Business [ ] Pensioner / Retired [ ] Any other please specify 4. What is the range of your monthly income in? [ ] Below 5000 [ ] 5000-10,000 [ ] 10000-20,000 [ ] 20,000-40,000 [ ] 40000-70,000 [ ] 70000-100,000 [ ] Above 1 lakh 5. Education: [ ] Non-Matric [ ] Graduate [ ] Any other, please specify [ ] SSC /Plus 2 [ ] Post-graduate/professional B. PERSONAL FINANCE 6. Do you invest in Securities Market? [ ] Yes [ ] No If yes, then proceed further. 7. You currently have investments in (Rank in order of investment) (Give rank 1 to maximum investment) [ ] NSC [ ] Deposits with Post Offices [ ] Life Insurance [ ] Saving Bonds [ ] PSU Bonds [ ] FDRs with Bank [ ] Company Deposits [ ] Mutual Funds [ ] Equity Shares [ ] Derivatives [ ] Any other pl. specify 8. Which of the following categories of shares are held by you? Rank in order of value of holding, rank 1 for maximum holding. [ ] Sensex/ Nifty Index Shares [ ] Others regularly traded shares [ ] Thinly traded shares [ ] Illiquid shares (which are not being traded) [ ] Z Group / T group shares [ ] Suspended [ ] De-listed [ ] Un-listed 359
9. The shares held by you are in which form? (please specify % wise holding) [ ] demat form--------------% [ ] physical form-----------% [ ] Can t say 10. Do you agree with the statement that there is a need to increase the Investment limit of 1 lakh for the retail investor in securities transactions? (Tick any one) [ ] Strongly Agree [ ] Agree [ ] Can t say [ ] Disagree [ ] Strongly Dis-agree 11. If yes, then what should be the limit for investment by Retail investors? (Tick any one) [ ] Up to 2 lakhs. [ ] Up to 3 lakhs [ ] Up to.5 lakhs [ ] Above 5 lakhs [ ] Any other please specify. C. PRIMARY MARKETS 12. How frequently do you trade in primary market? [ ] Always [ ] Frequently [ ] Occasionally [ ] Rarely [ ] Never 13. What problems do the investors face while applying in IPOs? [ ] Delay in receipt of Refunds/ allotment [ ] Application form too cumbersome [ ] Shares are not credited in demat account [ ] Any other please specify [ ] Wrong credit of shares 14. Do you know that SEBI has allowed mandatory credit rating for IPOs? [ ] Yes [ ] No 15. If yes, do you agree that the decision of SEBI would protect the interest of the Retail Investors? [ ] Strongly Agree [ ] Agree [ ] Can t say 16. Which are the grey areas in the primary market? (Rank according to the gravity. Rank 1 for maximum gravity.) [ ] Non-receipt of IPO refunds [ ] Inadequate disclosures [ ] Favours institutional investors only [ ] Non-availability of Collection Centres [ ] Quota for Retail Investors in IPO is very low [ ] Any other, please specify [ ] Issue price is arbitrary and exorbitant 17. Are you satisfied with the reforms initiated by SEBI in primary market for safeguarding the interests of retail investors? [ ] Highly Satisfied [ ] Satisfied [ ] Can t say 18. Are you satisfied with the present system of Book Building wherein a price band is fixed for an IPO in which free pricing is allowed? [ ] Highly Satisfied [ ] Satisfied [ ] Can t say 19. Whom do you consider more responsible for disclosures in offer document? Rank 1 for highest responsibility. [ ] Company Management [ ] Credit Rating Agency [ ] Any other, pl. specify. [ ] Merchant Bankers [ ] Stock Exchanges [ ] SEBI [ ] Registrar of Companies 360
20. Do you agree that a Merchant Banker should safeguard the interest of retail investors in an IPO and ensure proper disclosures by the company? [ ] Strongly Agree [ ] Agree [ ] Can t say D. SECONDARY MARKETS 21. How frequently do you trade in secondary market? [ ] Daily [ ] Once a week [ ] Once a fortnight [ ] Once a month [ ] Occasionally 22. What according to you are the grey areas in secondary market? (Rank in order of gravity. Rank 1 for maximum gravity) [ ] Delay/ non-credit of shares in demat account [ ] Non-receipt of statement of account [ ] Non-receipt of contract notes [ ] Manipulation in account statement [ ] Excess levy of brokerage [ ] Brokers not giving right advice [ ] Trading without consent [ ] Any other, please specify [ ] Delay/ non-receipt of payment 23. What steps should SEBI take in order to check the practice of delay/ non-credit of shares in demat account/fund by the brokers? Rank in order of importance, Rank 1 for the most important. [ ] Direct credit by Stock Exchange [ ] Settlement system should be reduced to T+1 [ ] Broker should be penalized by the S.E. [ ] Any other, please specify [ ] Frequent inspection of Brokers/Sub-brokers 24. Are you satisfied with the present system of Settlement of Securities & Funds in trading of shares? [ ] Highly Satisfied [ ] Satisfied [ ] Can t say [ ] Dis-satisfied [ ] Highly Dis- Satisfied 25. Do you agree wit the statement that Screen Based Trading has brought transparency in Securities Market? [ ] Strongly Agree [ ] Agree [ ] Can t say 26. Do you agree that volatility in Indian Securities Market is scaring away retail investors? [ ] Strongly Agree [ ] Agree [ ] Can t say 27. Whom do you hold responsible for excess volatility (Rank in order of degree. Rank 1 for maximum degree) [ ] Introduction of Screen Based Trading [ ] Expansion of trading Network [ ] Influence of Foreign Institutional Investors [ ] Concentration of trading in few Stock Exchanges [ ] SEBI s Policies [ ] Excess Liquidity [ ] Changed pattern of investment by Investors [ ] Any other, please specify.. E. INVESTORS COMPLAINTS 28. What problems do you face against listed companies? (Rank in order of gravity of problem. Rank 1 for maximum gravity.) [ ] Non-receipt/ delay in Dividend Warrants [ ] Non-dematerialization of shares [ ] Delay in Transfer of shares [ ] Delay in publishing price sensitive information [ ] Delay/ non-publication of Results [ ] Delay in refund orders/ allotment advice 361
[ ] Non receipt of offer for right issues [ ] Any other, please specify [ ] Non-receipt / delay of Annual Reports/ Notices 29. What problems do you face as a client from a broker/sub-broker? (Rank in order of gravity of problem. Rank 1 for maximum gravity.) [ ] Non-receipt of Contract Notes [ ] Non-receipt of sale proceeds of shares [ ] Non-credit of shares in account [ ] Charging of excess brokerage [ ] Delay in execution of orders [ ] Manipulations in a/c statement [ ] Wrong advice to Investors [ ] Any other, please specify [ ] Non-receipt of transaction statements 30. What problems do you face as a client from a DP/ depository (NSDL/CDSL)? (Rank in order of gravity of problem. Rank 1 for maximum gravity.) [ ] Demat charges are too high [ ] Wrong credit of shares [ ] Delay in demat of shares. [ ] Non-availability of online DP services [ ] Unauthorized debit / credit to a/c [ ] Any other, please specify [ ] Non-dispatch of holding/transaction statements 31. What complaints do you have against SEBI? (Rank in order of gravity. Rank 1 for maximum gravity.) [ ] Over regulation of Stock Markets [ ] Inadequate efforts toward Investors education [ ] Delay in resolving of complaints [ ] Improper services in remote areas [ ] No protection against fly by nights operators [ ] Any other, please specify [ ] Frequent changes in policies 32. Have you ever lodged any complaint? If yes, what has been your nature of complaint? There can be more than one answer. Pl. tick, whichever is applicable. [ ] Non-Receipt of Interest/ Dividend/ Rights/ Bonus [ ] Non-transfer of shares(in physical mode) [ ] Demat charges are too heavy [ ] Manipulation in account statement by broker [ ] Brokerage commissions are too high [ ] Broker s service is bad [ ] Contract notes not received/ received late) [ ] Delay in credit of shares in demat a/c [ ] Shares sale proceeds do not come to you in time. [ ] Any other please specify F. GRIEVANCE REDRESSAL MECHANISM 33. Which of the following are the right authorities for redressal of your grievances? Please tick whichever is applicable. There may be more than one authority. [ ] Stock Exchanges [ ] Ministry of Corporate affairs [ ] Reserve Bank of India [ ] SEBI [ ] Consumer Courts [ ] Securities Market Ombudsman [ ] Registrar of Companies [ ] Investment Associations [ ] Any other, please specify. 34. Are you satisfied with the present system of Grievance Redressal Mechanism in Stock Exchanges/SEBI etc. relating to trading in shares? [ ] Highly Satisfied [ ] Satisfied [ ] Can t say [ ] Dissatisfied [ ]Highly Dissatisfied 35. Which of the following measures need to be taken by SEBI to improve Grievance Redressal Mechanism for Retail Investors? Rank in order of importance. (Rank 1 for most important.) [ ] Stock Exchanges to set up Investor Service Centres in all major cities with requisite infrastructure. [ ] Retail investors should be given training by the Investor Services Centres before trading. [ ] BSE and NSE should set up Regional Investor Service Centres in major cities. [ ] SEBI should strengthen its regional offices with more powers and requisite infrastructure. [ ] SEBI to give more powers to registered Investors Associations [ ] Regular meeting with Investors and Investment Associations [ ] Any other, please specify 362
36. Have you ever made complained to SEBI/ Stock Exchange/ any market intermediary like Share Transfer Agent etc.? [ ] Yes [ ] No 37. If yes, what has been your experience with SEBI / Stock Exchanges with regard to your complaint? [ ] Excellent [ ] Good [ ] Can t comment [ ] Fair [ ] Poor 38. Do you agree that there are number of market regulators in Indian Securities Market which has made the Complaining process more complex? [ ] Strongly Agree [ ] Agree [ ] Can t say 39. Do you think the authorities like Stock Exchanges/SEBI are receptive to the retail investors complaints? [ ] Strongly Agree [ ] Agree [ ] Can t say 40. Are you satisfied with the time taken by the various authorities for the redressal of your complaint? [ ] Highly Satisfied [ ] Satisfied [ ] Can t say G. INVESTOR PROTECTION AND CORPORATE GOVERNANCE 41. What is the best solution to protect investors interest? (Rank in order of importance. Rank 1 for important solution.) [ ] Brokers and other intermediaries should be more compliant to regulatory provisions. [ ] Defaulters should be severely and speedily punished. [ ] Improve management and internal controls in companies [ ] Greater Awareness needs to be created amongst investors on a regular basis [ ] SEBI to periodically publish the compliant and non-compliant companies [ ] Companies need to be educated to follow Corporate Governance Norms in letter and spirit. [ ] Any other suggestion 42. Do you read and examine the Annual Reports/ Quarterly Results of the companies. [ ] Yes [ ] No 43. Are you satisfied with the disclosures like Annual Reports and quarterly results made by the listed companies on the websites of BSE and NSE? Please give your response as under: [ ] Highly satisfied [ ] Satisfied [ ] Can t say [ ] Dissatisfied [ ] Highly dissatisfied 44. Do you think Annual Reports provide you the actual financial details of the company? (Please tick whichever is applicable) [ ] Yes, all the information given in Annual Report is worth and factual. [ ] No, the information is almost 4-5 months late after the cut off date of closure of financial year. [ ] Information provided hides more and reveals less. [ ] These are mere window dressing and confuse the investors. [ ] Information provided is deliberately distorted and misleading. [ ] Too much (irrelevant )of information is provided that creates confusion. [ ] Any other, please specify 363
45. Do you agree that the Corporate Governance Clause has brought more transparency in listed companies? [ ] Strongly Agree [ ] Can t Say [ ] Agree 46. Do you agree that induction of Independent Directors on the Governing Board of listed companies will bring more professionalism? [ ] Strongly Agree [ ] Can t Say [ ] Agree H. INVESTOR EDUCATION 47. Are you aware of Securities Market Awareness Campaign (SMAC) launched by SEBI for educating the masses through organizing investors workshops? [ ] Yes [ ] No 48. If yes, have you attended any workshop organized by any Stock Exchange/SEBI or any other regulatory body under SMAC? [ ] Yes [ ] No 49. Are you satisfied with the efforts of Stock Exchanges and SEBI for organizing workshops under SMAC? [ ] Highly Satisfied [ ] Satisfied [ ] Can t say 50. Which of the following measures are required to educate the Retail Investors? (Rank in order of the importance. Rank 1 in for the most significant measure.) [ ] Frequent programmes through media [ ] Active role of print media [ ] Strengthening of Regional Offices of SEBI / Stock Exchanges [ ] Arranging more investor seminars in smaller towns [ ] Providing more educative literature in local language. [ ] Investor education be introduced at the school/ college level. [ ] Any other, please specify Name----------------------------------------------- Address------------------------------------------- Signatures ------------------------------------- Date: Place: 364
Annexure B Questionnaire for officials of Stock Exchanges/ RTAs/ SEBI and other Market Intermediaries (Research Project on Protection and Grievance Redressal Mechanism for Retail Investors: A Case Study of Indian Securities Market.) S. No. Please Tick [ ] wherever applicable A. PERSONAL DETAILS 1. Name (Optional) Mr./Ms. 2. Name of the Exchange / Organization Address.. City:.Dist.:.State: 4. Contact Nos..Mobile Email 5. Which of the following functions/department, are you associated with? [ ] Legal [ ] Investor Services Cell [ ] Any other pl. specify [ ] Depository Services [ ] Trading Operations [ ] Company Listing [ ] Training & Education 6. Designation/ Post in the department/ organization [ ] Sr. Assistant [ ] Officers/ Executive [ ] Manager /Sr. Manager [ ] General Manager [ ] CEO/ MD [ ] Any other, please specify B. PRIMARY MARKETS 7. Are you satisfied with the reforms initiated by SEBI in Primary Market for safeguarding the interest of Retail Investors? [ ] Highly Satisfied [ ] Satisfied [ ] Can t Say 8. If not satisfied, what reforms do you think are required for primary market? Rank in order of importance. (Rank 1 for the most important reforms). [ ] Quota for retail investors should be increased in IPOs. [ ] Disclosures in the prospectus be more comprehensive. [ ] Pricing of IPOs should not be arbitrary. [ ] Refunds should be dispatched at the earliest. [ ] Application forms be made simple. [ ] More collection centres be added. [ ] On-line applications be introduced. [ ] Any other, please specify. 365
9. Are you satisfied with the present system of Book Building wherein a price band is fixed for an IPO? [ ] Highly Satisfied [ ] Satisfied [ ] Can t Say 10. SEBI has recently introduced mandatory credit rating for IPOs. Do you agree that this decision of SEBI to introduce mandatory Credit Rating would protect the interest of the retail investors? 11. Do you agree that insurance against losses in IPOs applications would help primary market? 12. Whom do you consider more responsible for disclosures in offer document? (Rank 1 for the most responsible authority.) [ ] Company Management [ ] Merchant Bankers [ ] Registrar of Companies [ ] SEBI [ ] Stock Exchanges [ ] Any other, please specify.. [ ] Credit Rating Agency 13. Do you agree that a Merchant Banker should safeguard the interest of retail investors in an IPO and ensure proper disclosures by the company? [ ] Strongly Agree [ ] Agree [ ] Can t say 14. What according to you are grey areas in the primary market? (Rank according to the gravity. Rank 1 for maximum gravity.) [ ] Non-receipt/ Delay of IPO refunds [ ] Inadequate disclosures [ ] Favours institutional investors only [ ] Non-availability of Collection Centres [ ] Quota for retail investors in IPO is very low [ ] Delay in credit of shares [ ] Volatility post IPO is very high [ ] Any other, please specify.. [ ] Issue price is arbitrary and exorbitant C. SECONDARY MARKETS 15. Are you satisfied with the present system of Settlement of Securities & Funds in trading of shares? [ ] Highly Satisfied [ ] Satisfied [ ] Can t Say 16. Do you agree that Screen Based Trading has brought transparency in Securities Market? 17. What steps SEBI should take in order to check the practice of delay/ non-credit of shares in demat account/fund by broker? (Rank in order of significance. Rank 1 for the most significant step. [ ] Direct credit by Stock Exchange [ ] Settlement system should be reduced to T+1 [ ] Broker be penalized by the Exchanges [ ] Any other, please specify. [ ] Frequent inspection of Brokers/Sub-brokers 366
18. Whom do you hold responsible for excess volatility? (Rank in order of degree. Rank 1 for most responsible area.) [ ] Introduction of Screen Based Trading [ ] Expansion of trading Network [ ] Influence of Foreign Institutional Investors [ ] Concentration of trading in few S. E. [ ] SEBI s Policies [ ] Excess Liquidity [ ] Changed pattern of investment by investors [ ] Any other, please specify 19. Do you agree volatility in Indian Securities Market is scaring away retail investors? 20. Which are the grey areas in secondary market? (Rank in order of gravity. Rank 1 for highest gravity.) [ ] Delay/ non-credit of shares in demat account [ ] Non receipt of statement of accounts [ ] Non receipt of contract notes [ ] Manipulation in account statement [ ] Excess levy of brokerage. [ ] Brokers not giving right advice [ ] Trading without consent on Investors [ ] Any other, please specify. [ ] Delay/ non receipt of payment D. GRIEVANCES REDRESSAL MECHANISM 21. What complaints are generally reported by the Retail Investors against the listed companies? (Rank the complaint in order of number of complaints received. Rank 1 for maximum number of complaints.) [ ] Non-receipt/ delay in Dividend Warrants [ ] Non-dematerialization of shares [ ] Delay in Transfer of shares [ ] Delay in publishing price sensitive information [ ] Delay/ non-publication of Results [ ] Delay in refund orders / allotment advice [ ] Non receipt of offer for right issues [ ] Any other, please specify. [ ] Non-receipt/ delay of Annual Reports/ Notices 22. What sort of problems according to you, the retail investors face as clients of the broker/ subbroker? (Rank in order for gravity of problem. Rank 1 for maximum gravity). [ ] Delay/ non-receipt of Contract Notes [ ] Delay/ non-receipt of sale proceeds of shares [ ] Delay/ non-credit of shares in account [ ] Charging of excess brokerage [ ] Delay in execution of orders [ ] Manipulations in a/c statement. [ ] Wrong advice to Investors [ ] Any other, please specify. [ ] Delay/ non-receipt of transaction statements 23. What sort of problems according to you, the retail investors face as a client of a DP/ depository? (Rank in order of gravity of problem. Rank 1 for maximum gravity.) [ ] Demat charges are too high [ ] Wrong Credit of Shares [ ] Delay in demat of shares. [ ] Non-availability of online DP services [ ] Un-authorized debit / credit to a/c [ ] Any other, please specify. [ ] Non-dispatch of holding/transaction statements 367
24. Which of the following measures are required needed to be taken by SEBI to improve Grievance Redressal Mechanism for Retail Investors? (Please tick whichever is applicable. You can tick more than one.) [ ] Stock Exchanges to setup Investor service centers in all major cities with requisite infrastructure. [ ] Retail investors should be given training by the Investor Services Centres before trading. [ ] BSE and NSE should set up Regional Investor Service Centres in major cities. [ ] SEBI should strengthen its regional offices with more powers and requisite infrastructure. [ ] SEBI to give more powers to registered Investors Associations. [ ] Regular meeting with investors and Investment Associations [ ] Any other, please specify. 25. Do you agree that there are number of market regulators in Indian Securities Market which has made the complaint redressal mechanism more complex? 26. Are you satisfied with the existing Grievances Redressal Mechanism and time taken by the various authorities to redress the grievances of Retail Investors. [ ] Highly Satisfied [ ] Satisfied [ ] Can t Say 27. If not, what efforts be made by SEBI and Government of India for protecting retail investors and ensuring a fair, transparent and time-bound grievance redressal mechanism? [ ] The company having long pending complaints be penalized by both Exchanges & SEBI. [ ] The promoters of the erring companies be debarred from entering capital market. [ ] Separate judicial system forum be made for Investor Complaints in securities market. [ ] Separate Investor Protection Act should be enacted. [ ] Time bound complaint redressal should be ensured. [ ] Investor associations should be given wide representation on the Board of companies. [ ] Any other please specify. E. INVESTOR PROTECTION AND CORPORATE GOVERNANCE 28. Do you agree with the statement that reforms initiated in Capital Market have resulted into reduction of scams? 29. Whom do you hold responsible for the Vanishing Companies? (Rank according to gravity of situation. Rank I for maximum gravity.) [ ] Promoters of company [ ] Directors of company [ ] Regulatory framework [ ] Professionals advisers [ ] Merchant Bankers [ ] Any other, please specify.. 30. What steps should be taken by SEBI to curb the menace of Vanishing Companies? [ ] Promoters should be booked. [ ] License of concerned merchant banker be cancelled. [ ] The Board of the companies be held liable. [ ] Property of Company / director be attached [ ] Any other, please specify 368
31. Are you satisfied with the disclosures like Annual Reports and quarterly results made by the listed companies? Kindly give your comments as under: [ ] Highly Satisfied [ ] Satisfied [ ] Can t say 32. Do you think Annual Reports provide the actual financial details of the company? (Please tick whichever is applicable) [ ] Yes, all the information given in Annual Report is worth and factual. [ ] No, the information is almost 4-5 months late after the cut off date of closure of F.Y. [ ] Information provided hides more and reveals less. [ ] These are mere window dressing and confuse the investors. [ ] Information provided is deliberately distorted. [ ] Too much of information is provided that causes confusion. [ ] Any other, please specify. 33. Do you agree that the Corporate Governance Clause has brought more transparency in the functioning of listed companies? 34. Do you agree that induction of Independent Directors on the Governing Board of listed companies will bring more professionalism and transparency? 35. Which is the best solution to protect investors rights? (Rank in order of importance. Rank 1 for best solution.) [ ] Brokers and other intermediaries should be more compliant to regulatory provisions. [ ] Defaulters should be punished severely and speedily. [ ] Improve management and internal controls in companies. [ ] Regular efforts need to be made to spread awareness among investors. [ ] SEBI to periodically publish compliant and non-compliant companies [ ] Companies need to be educated to follow Corporate Governance Norms in letter and spirit. [ ] Any other suggestion. F. INVESTOR EDUCATION 36. Are you satisfied with the efforts made by Stock Exchanges and SEBI for organizing workshops under Securities Market Awareness Campaign (SMAC)? [ ] Highly Satisfied [ ] Satisfied [ ] Can t Say 37. Which of the following steps are required to educate the Retail Investors? (Rank in order of importance. Rank 1 for the most important step.) [ ] Frequent programmes through media [ ] More active role of print media [ ] Strengthening of Regional Offices of SEBI [ ] Strengthening Regional Offices of Stock Exchanges [ ] Arranging more investor seminars in smaller towns [ ] More educative literature in local language [ ] Imparting knowledge at school/ colleges level [ ] Any other, please specify. 369
G. MISCELLANEOUS 38. Do you agree that the limit of Investment of 1 lakh by retail investor in securities transactions needs to be increased? [ ] Strongly Agree [ ] Agree [ ] Can t say 39. If agreed, then what should be the limit for investment by retail investors? [ ] Up to 2 lakh [ ] Up to 3 lakh [ ] Up to 5 lakh [ ] beyond 5 lakh [ ] Any other, please specify 40. Please provide the data regarding the redressal rate of complaints in your department/division in the following format? Attach a separate sheet if required. Name of the Exchange/ Organization: Name of the Department: Name----------------------------------------------- Address-------------------------------------------- --------------------------------------------- Signatures ---------------------------------------- Date:---------------------- Place: --------------------- 370