ANNEXURE-I

“EQUITY INVESTMENT CULTURE IN INDIA”

QUESTIONNAIRE

I. PERSONAL INFORMATION:

1. Name and Address (Optional):

2. Occupation : Years of experience :

3. Age:

Below 25 25-35 years 35-45 years 45-55 years Above 55

years years

4. Educational qualifications:

Illiterates 10th Intermediate Graduate Post others

class graduate

5. State the average annual income of your family including your occupation.

Below Rs.1 Rs.1-2 lakh Rs. 2-3 lakh Rs.3-5 lakh Above 5 lakh
lakh

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 6. State the average annual savings out of the above.

Below Rs.50,000- Rs.1,00,000- Rs.1,50,000- Above

Rs.50,000 1,00,000 1,50,000 2,00,000 2,00,000

II. INVESTMENT PATTERN:

1. In which year you have started your investment activity .

2. What is your investment pattern during initial years and current and their
motivating factors?

Initial years Current years

Investment Pattern Motivating Motivating

Factors* Factors*
1.Agricultural land
2.House sites and buildings
3.Real estate
4.Durable consumer goods
5.Jewellery
6.Money lending
7.Chit Funds
8.Postal Savings and deposits
9.Deposit in Banks and FI’s
10.Government Bonds
11.LIC Schemes
12.Mutual Funds
13.Company Shares
14.Company Debentures
15.Company Deposits
16.Others (Please specify)

The following are some of the motivating factors.

a) Family traditions f) Family members

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b) Friends, Colleagues, Relatives g) By Self interest

c) Media publicity h) Security for money

d) Financial Institutions i) High Return

e) Agents and Brokers j) Capital gains

3. Please rank the fallowing factors influencing your investment decision.

No. Item of Investment Rank

1. Safety of Principal amount
2. Liquidity of the investment
3. Annual return
4. Capital Appreciation
5. Tax Benefit

4. Are you happy with present investment pattern? YES / NO.

If NO, are you proposing to make any change in the investment pattern?

YES / NO

If YES, please mention the nature of change and the reasons there for

Nature of change Reasons

5. How do you rate the following avenues of investments?

Avenues of investment Awareness Security Liquidity Return Ranking of

(YES/NO) (H M L) (H M L) (H M L) your
preference
1.Postal savings
2.Bank savings
3.Bank Deposits

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 4.LIC policy
5.Units of UTI
6.Govt.Bonds
7.Company Shares
8.Company Debentures
9.Company Deposits
10.Investment in local
Chits
11. Investment in private
financial corporations.

H - High; M - Medium; L – Low

III. EQUITY INVESTMENT:

1) Are you aware of company equity shares? (YES/NO)

2) If YES, please mention the names of any three companies you are aware of

1.

2.

3.

3) Preference for securities

a) Govt. b) Private

4) Reasons for choosing the security

1.

5) Choice of securities

A) Equity a) common b) preference

B) Debt a) Debentures b) Bonds c) Fixed deposits

6) Are you aware of the following benefits of Equity Investment?

Benefits Yes No

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 a. Transferability of shares
b. Easy to realize (Liquidity) by selling in secondary market.
c. Very high rate of return at certain times.
d. Getting Bonus/Right shares.
e. Ownership of company.
f. Procedure for allotment of shares (Equal Opportunities).
g. An opportunity to participate in decision making either
personally or through proxy.
h. Bank facilities for buying shares.
i. Capital appreciation through market value (Speculation).
j. Possibility of loans on pledge of equity shares.
k. Changes of becoming director of company.
l. Discount on purchase of company’s goods in some cases.

7) Do you follow the investment analysis before investing in share market?

(YES/NO)

A) Fundamental analysis ( )

a) Economic analysis ( )

b) Industry analysis ( )

c) Company analysis ( )

B) Technical analysis ( )

8) List any six major companies in which you have invested at present

Name of the Primary/ Motive of Date of Distinguishing

company secondary investment investment features
1.
2.
3.
4.
5.
6.

Motives: a) Capital appreciation b) Regular returns

c) Prompt service to share holders d) Growth prospects of company

9) Are you aware of protective measures available to equity investors?

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 1. The companies Act, 1956 YES/NO

2. SEBI guidelines YES/NO

3. Stock Exchange Guidelines YES/NO

4. Share Holders’ Grievance cell YES/NO

10) Are you happy with your present investment in Equity shares?

YES/NO

If YES, What are the reasons (tick the appropriate reasons)

a. Prompt reply from companies. b. Good returns and dividends.

c. Safe investment. d. International portfolio development.

e. Not effected by inflation. f. Easy marketability of shares.

g. Capital appreciation. h. Tax benefits.

i. Availability of professional guidance on equity market.

j. Any others (please specify).

If NO, What are the reasons (tick the appropriate reasons)

a. Returns are very low. b. Uncertainty of returns.

c. No protection for principal invested. d. No proper governance.

e. Improper utilization of money raised. f. Lack of Accountability.

g. Need for more correspondence. h. Ineffective remedial mechanism.

i. Poor project Appraisal by Agencies and banks.

j. Any others (please specify)

11) Are you facing any problem with intermediaries? YES / NO

If YES, what are they?

1)

2)

12) To what extent the following are necessary to popularize the Equity Culture?

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 Standards required To a large To some Not
extent extent required
a) Door to door campaign by agents in different
areas.
b) Extensive campaign through opening of
branches of companies.
c) Increase accountability of lead managers and
banks in appraising.
d) Introduction and extension of insurance to
equity investment on the lines of bank
deposits.
e) Insisting companies on depositing certain
percentage of equity.
f) Increase participation of equity shareholders
by conducting AGM in multiple locations.
g) Increase responsibility of promoters and
directors to equity investments.
h) Formation of small investors’ Association to
protect their interest.
i) Introducing a buy back policy by company
irrespective of market.
j) Opening of markets for foreign portfolio
investment.
k) Control the speculative transactions of
institutions which influence markets.
l) Taking strict action against the fraudulent
merchant bankers and stock brokers.
m) Development of security analysis to give
proper advice to investors.
n) Lead managers to be given post issue
responsibilities like timely listing of securities
in the stock exchanges.
o) Reserving 50% of public offering for small
investors instead of following proportional
allotment.
p) Strict enforcement and implementation of
guidelines of SEBI.
q) Any specific suggestions.
1)

13) Do you feel that following are limiting you to enter primary market-Please respond?

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 1) Wrongful disclosure YES/NO

2) Inadequate and Misleading information YES/NO

3) Free pricing of issues YES/NO

4) Incapable and biased lead managers YES/NO

5) Procedural lacunae of SEBI YES/NO

6) Pre issue price rigging YES/NO

14) A sound and vibrant equity capital market is an essential condition for rapid economic
growth of a company. Do you agree?

YES NO NOIDEA

15) Depending on large no. of small investors is perhaps more desirable than depending on a
few rich investors to raise financial resources required. Do you agree?

YES NO NOIDEA

16) Do your family members have different attitude towards different investment avenues?

YES NO

17) Where do you usually notice information on investment Avenues? Please rank the
following:

Sources of information Rank

a. Daily news papers - Telugu.
b. Daily news papers – English.
c. Periodicals-Telugu.
d. Periodicals –English.
e. Sign boards.
f. Radio.
g. Television.
h. Agents.
i. Relatives and friends.
j. Public announcement.
k. Internet/Mobile alerts.
l. Others (please specify)

IV. FINANCIAL CRISES:

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 1) Are you aware of the stock market fall down YES/NO

2) What is the effect of crisis of stock market?

Positive/Negative

3) What are the reasons for stock market fall down?

a) Due to global financial crises.

b) Due to rupee development against dollar.

c) Slow down of foreign trade.

d) Decline forex reserves.

e) Out flow of foreign investment.

4) Investment lost in during share market crash? YES/NO

If yes,

a) Up to 50,000

b) 50,000-1,00,000

c) 1,00,000-2,00,000

d) 2,00,000-5,00,000

e) 5,00,000-and above

5) Have you disposed the shares YES/NO

6) Have you bought the shares during stock market crash YES/NO

V. The effect of financial crisis on investment pattern:

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1) Your investment pattern is affected by the financial crises? YES/NO

If yes, how you are affected?

a)

b)

c)

2) What are your observations?

a) Low availability of credit b) Banks disinterest to give loans

c) Low interest rates d) slow down in the real estate market

e) Fall down in the prices of automobiles/electronic items/other consumer durables

3) Did you change your investment pattern? YES/NO