Scholarly Research Journal for Humanity Science & English Language, Online ISSN 2348-3083, SJ IMPACT FACTOR 2021: 7.278, www.srjis.com PEER REVIEWED & REFEREED JOURNAL, JUNE-JULY, 2022, VOL-10/52
A STUDY ON PRE-INVESTMENT DUE DILIGENCE BY CAPITAL MARKET INVESTORS OF MUMBAI SUBURBAN AREA Nishikant Jha1, Ph. D. & (CA). Aashish Vakilna2 1
Supervisor
2
Research scholar
Paper Received On: 25 JULY 2022 Peer Reviewed On: 31 JULY 2022 Published On: 1 AUGUST 2022
Abstract Due diligence is a process of verification and investigation of an investment (such as shares, mutual funds etc.) to confirm the facts and financial information about a company. The present study is an attempt to find out the due diligence of investors before investing into capital market. For the purpose of this study, data is collected from 73 respondents of Mumbai Suburban area who invest in capital market. The data makes it clear that most of the capital market investors invest in equity and mutual funds. Their motive/purpose of investment is to earn higher returns followed by second income. Before investing into capital market, the investors collect information (due diligence) from Annual reports of company, followed by Publications in newspaper/ electronic media and published report from research agencies. Key Words: Investment, Capital Market, Due Diligence, Retail investors
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Introduction In India, many investment avenues are available where some are marketable and liquid while others are non-marketable (lock in securities). Some of the investment avenues are highly risky and others are almost riskless. The investor has to choose investment depending upon his/her specific need, risk preference, and returns expected. Capital markets are financial markets for buying and selling of long-term securities having maturity-period of one year and more. Financial securities traded in this market are shares, bonds, debentures etc. Due diligence refers to collecting information about an investment avenue. It is the indepth study and research being done before making investment decision. Potential investors will have to do due diligence prior to investing into company’s securities. Due diligence is Copyright © 2022, Scholarly Research Journal for Humanity Science & English Language