The Securities Exchange Board of India Investor Grievance Redressal System

Investors may be individuals and institutions. Individual's investors operate alongside institutional investors in the investment arena. However, their characteristics are different. Individual investors are large number but their investable resources are comparatively smaller. They generally lack the skill to carry out extensive evaluation and analysis before investing. Moreover, they do not have the time and resources to engage in such an analysis. Institutional investors, on the other hand, are the organization with surplus funds who engage in investment activities. Mutual funds, investment companies, banking and non-banking companies, insurance corporations, etc. are the organizations with large amounts of surplus funds to be invested in various profitable avenues. These institutional investors are fewer in number compared to individual investors, but their investable resources are much larger. The institutional investor engages professional fund managers to carry out extensive analysis and evaluation of different investment opportunities. As a result their investment activity tends to be more rational and scientific. They have a better chance of maximizing returns and minimizing risk. -Investors are the backbone of the securities market. -They determine the level of activity in the securities market and the level of activity in the economy. -Many investors may not possess adequate expertise/knowledge to take informed investment decisions. -May not be aware of the complete risk-return profile of the different investment options. May not be fully aware of the precautions they should take while dealing with market intermediaries and dealing in different securities. -They may not be familiar with the market mechanism and the practices as well as their rights and obligations.