THE POLITICAL ECONOMY AND GREEN INNOVATION IN INDIA

M.Ramanadhan LL.M., **
C. Mohan kumar LLM., *
Guest Lecturers
Government Law college, Dharmapuri.

ABSTRACT
The techniques for financing innovation for long-term growth and investor
protection are examined in this study. It looks at the elements that affect the
creation of novel financing instruments as well as other conventional financing
methods, such as venture capital. Investor protection when financing a source.
Implement the two period overlapping generations model of capital accumulation
and investigate the effects it has on economic growth. Risk sharing and investor
protection are strongly correlated. similar to how risk-averse investment models
work. A higher demand for capital is brought on by improved Protection (better
risk sharing). The demand impact is evident in this. In order to promote sustainable
growth and safeguard investors' interests, it offers insights into how efficient
innovation and financing strategies can be put into practice.
Keywords; Investor Grievance Redress Mechanism of SEBI, Scores (SEBI
Complaints Redress System), How Investor Complaints are handled in SEBI?
Introduction
The term "investor protection" is now used often by all parties involved in
the regulation of the capital markets, including the Securities and Exchange Board
of India, stock exchanges, investors organizations, and even the firms themselves.
The broad concept of "investor protection" refers to a number of policies intended
to shield investors from the wrongdoings of businesses, merchant bankers,
depository participants, and other middlemen. The maxim "Investor Beware" need
to be the guiding principle of all savings-mobilization programmed. Since there is
a risk associated with any investment, investors should be aware of this risk and
take all reasonable steps to safeguard their interests. When they invest and
disregard caution.
Investor protection refers to a procedure or a system for safeguarding an investor's
interests in the securities market. For the most part, it means the actions taken with
the intention of bringing about and maintaining procedural transparency when
dealing with investors through various regulatory authorities and using appropriate
legal measures. There are many investors protection mechanisms in place in India
to safeguard investors' interests. The major three tools, or procedures, to safeguard
investors' interests are provided by judicial systems, numerous Acts, and security
market regulators like SEBI. Security for Investors In accordance with the SEBI
Act of 1992, "Investor protection" is defined as "safeguarding the interest of the
investors in securities and supporting the growth of and to regulate theInvestor
Protection Measures by SEBI.
According to Section 11(2) of the SEBI Act, investor protection law is
enforced.

Objectives of the Research

 To evaluate investor protection measures by SEBI for the retail investor in the
Indian securities market.
 To identify the problems of retail investors.
 To study about the powers and working of SEBI.
 To study the effectiveness of investor awareness programmed of SEBI.
 To suggest the suitable strategies to improve the confidence of retail investors.

Review of Literature
 This chapter reviews the related literature of already conducted studies in India.
 Here the review of research papers, journals, books, SEBI bulletins, committee
reports and company reports on the Securities and Exchange Board of
India(SEBI) has been done and presented.
 Several related research papers, journals have been quoted in this chapter
in which the various problems of retail investors, perception of the small
investor son the measures for market reforms & the effect of these on the retail
investor investments and the role of SEBI in redressing the various grievances
received from retail investors in relation to primary and secondary market
Research Methodology
This chapter deals with the research methodology used in the research work.
To glean insights about impact of investor protection measures by SEBI, it was
decided to utilize primary as well as secondary data. Primary data has been
collected through questionnaires from two categories of respondents i.e. Retail
 Individual Investors and Intermediaries of the market. Several rounds of
discussion with concerned stakeholders took place with topics relevant to the
objectives of the study. For collection and of secondary data the main source for
the study were the reports of SEBI, capital market, reports of Exchanges and the
Government reports.
Further RBI reports, committee reports, books on investment market, material
available in the library, financial statements of investment companies, financial
statements of intermediaries, related articles in news paper sand journals and
internet online data have also been read and added where required.
The use of all these techniques at different places has been made in the light of
nature and suitability of data available and requirements of analysis.
Government reports.
SOURCE OF DATA:
For the study, a Primary and Secondary data sources were used. As main
source of SEBI, Investor Protection acts.

A person or a legal entity that makes investments in surplus might be referred to as

an investor even though he isn't personally running that business. The investor has
no control over how the business is run outside of the authority granted by any
applicable statute. The investor has the option to invest his or her resources in
venture assets, company securities, or cooperative investment plans. An investor
contributes money to a firm in the form of capital or debt in exchange for profit or
investment. what drives people to purchase corporate securities is the increase in
his principal amount as well as the return on his invested capital. The amount of
risk a person is willing to accept makes the biggest distinction between an investor
and a speculator. A typical investor will want to minimize risk while maximizing
return, whereas a speculator is willing to take on more risk in order to achieve
above-average returns.

It's a common belief that everybody who is willing to put up effort or time is also
an investor in some sense. But, from a business perspective, for these people, the
"return on investment" is not as concrete as money. Typically, investors are not
involved in the day-to-day operations and administration of any corporation. They
are therefore unaware of a company's everyday activities and have no idea how
their money is being spent. He is unsure of what benefit and how much it would
bring him. An investor is therefore somewhat vulnerable to loss of capital and is
open to the possibility of receiving no return. As ownership and management in
every company he owns are separate should rely on the management's skill to
ensure that his money is spent profitably. Investors are typically not homogeneous;
they can be wealthy or impoverished, knowledgeable or inexperienced, large or
small. All investors do not require the same level of security, as is generally
known. An investor makes investments to achieve the following goals: Protection
of the principle amount, Liquidity of the invested funds, and ROI, or returns on
investment.

RETAIL INVESTORS' IMPORTANCE FOR THE CAPITAL MARKET

Retail individual investors are essential for the stability and expansion of every
economy's capital markets. As they make long-term investments, they guarantee
the much-needed money for business houses, as opposed to FIIs, FFIs, QIBs, and
HNIs, who make short-term investments. Therefore, it is the responsibility of the
executive branch and regulatory bodies to safeguard the interests of retail
investors. One can observe that the economies of the places where retail investors
have participated in the capital markets have grown all over the world. This in turn
depends on the level of protection promised to them in terms of a secure,
economical, and open transaction. Retail investors' ability to invest excess funds
depends on their faith in the market, its trade, and its dispute resolution process.

ASSESSING INVESTORS' RIGHTS

Prior to beginning their investment on the stock markets, investors should be

informed of their rights. He or she has a right to the greatest price for the securities
purchased or sold as well as to utilize the assistance of trading members. Yet, in
order to make a wise decision and complete the deal successfully, he must satisfy a
number of requirements.
RISK-RETURN ANALYSIS AND INVESTMENT OPTIONS

An investor may have a variety of investment opportunities for his extra

money, but his objective is always the same: Preservation of the principal, liquidity
of invested funds, and enough returns on his investment. Returns could take the
form of dividends, interest, or capital gains. The investment in the securities of a
company enterprise is the riskiest but also the most rewarding alternative available
to an investor, as indicated. Several types of securities include bonds, derivatives,
debentures, and other creative debt instruments, mutual funds, government
securities, and shares of both equity and preference. Whether an investor is an
individual or a legal entity, their goal Liquidity, market potential, ease of use, and
investment safety.
The expected return increases as the degree of risk does. The risks include credit
risk, which is the possibility that the counter party will not make payment, return
risk, which refers to whether the return is positive, negative, or average, and
liquidity risk, which refers to the difficulty in turning an investment into cash.

SEBI

The Securities and Exchange Board of India (SEBI) was established as a non
legislative body on April 12, 1988, by a resolution of the Government of India.
SEBI's role is to provide advice to the government on all issues pertaining to the
growth and regulation of the securities market and investor security. An ordinance
that was published on January 30th, 1992 gave the Securities and Exchange Board
of India statutory authority. On February 21st, 1992, SEBI was established as a
statutory entity. The legislation was approved. as a law passed by Parliament on
April 4, 1992. The SEBI Act's Preamble outlines the organization's goals as
follows: to protect investors' interests in the securities market and to both grow and
regulate the securities industry.

GOALS OF THE SEBI

Protecting investor interests and regulating and expanding India's securities

industry were the key goals for the establishment of SEBI. These actions are how it
accomplishes this: 1. Controls how stock exchanges conduct their business.
2. Assures that investors' rights and investment are safeguarded.
3. Establish internal and regulatory regulations to prevent business fraud.
4. Controls the operation of all associated intermediates.

BOARD FUNCTIONS

According to the Act, the Board's duties are extensive and can include the interest
of shareholders and investors by using the securities market in a highly effective
way. In order to fulfill its obligations to safeguard investor interests and advance,
develop, and regulate the securities market, the Board must take any actions it
deems necessary.
Examination of Existing Complaint Resolution Mechanism
This chapter throws light on several investor complaint resolution mechanisms for
retail investors in the Indian securities market such as complaint resolution system
at SEBI, complaint resolution system with Ministry of Company Affairs
 (MCA),complaint resolution system at Stock Exchanges, complaint resolution
system with listed companies as per SEBI Listing Regulations, 2015. This chapter
also mentions the current policy framework existing for resolution of complaints of
retail investors in the Indian securities market.

Conclusion

Therefore, it can be summarized that the enactment of Companies Act, 2013 is

proved to be a transitional reform in Indian corporate sector especially with
emphasizing focus on regulation regarding protection of investor’s interest and
creating transparency in working environment from the top to bottom level of
management and by eliminating different hidden hurdle which directly or
indirectly hinders the functioning of a company. To afford adequate protection to
investor’s interest, the company law has to operate with the different legal
legislation's.

References;

 https://unctad.org/news/green-technologies-coherent-policy-action-needed-
developing-countries-reap-benefits
 https://www.livemint.com/news/india/green-tech-in-india-estimated-to-reach-45-55-
billion-by-2027-bcg-report-11649862548701.html
 https://www.india.gov.in/spotlight/national-green-hydrogen-mission