Abstract
Globalization has significantly transformed financial markets worldwide, including the securities market in Tamil Nadu, one of India’s most industrialized states. This study examines the trends, opportunities, and challenges in the development of Tamil Nadu’s securities market in the context of globalization. Key findings highlight a steady increase in retail and institutional investor participation, driven by technological advancements and foreign investments. The emergence of small- and medium-sized enterprises (SMEs) and start-ups as active market participants underscores the market's growing diversity. However, challenges such as low financial literacy, particularly in rural areas, regulatory complexities, and market volatility hinder equitable and sustainable growth.
The study emphasizes the need for policy reforms, improved financial literacy programs, and technology-driven solutions to bridge the urban-rural divide and strengthen market infrastructure.
By addressing these challenges and fostering inclusive participation, Tamil Nadu’s securities market can position itself as a key driver of economic development while navigating the complexities of a globalized financial ecosystem.
Keywords : Globalization, Securities Market, Tamil Nadu, Financial Literacy, Investor Participation, Foreign Institutional Investment (FII), Small- and Medium-Sized Enterprises (SMEs)
References
Globalization of Securities Market: Effects & Trends. (n.d.). Retrieved from www.globalizationofmarkets.com.
Worldwide Journals. (2015). Securities Market Trends and Challenges in India. Paripex – Indian Journal of Research, 4(4). Retrieved from www.worldwidejournals.com.
International Capital Market Association. (n.d.). Trends in Market Liquidity and Investor Protection. Retrieved from icsa.global.
The globalization of securities markets has enabled increased international capital flows, impacting regional markets like Tamil Nadu's. Improved access to foreign investments has bolstered market liquidity and encouraged the development of new financial instruments.
Advancements in electronic trading and big data analytics have revolutionized securities trading, providing smaller markets like Tamil Nadu opportunities to integrate better with global capital markets.