CONCLUSION
An efficient Stock market is usually defined by the availability and accuracy of information about the securities and their prices. Economic market theories are usually based on the idea that every trader has full information about the securities available and the price demanded, along with any other details that could be relevant such as past market behavior, the performance of the company issuing the stock, or the likelihood of a debt security issuer repaying the money as promised. The more efficient a capital market, the closer the real situation is to this hypothetical situation. The idea is that the more efficient the market, the more informed the judgments and decisions of investors, and thus the money is allocated in the most productive way overall. Stock market is a sub-set of financial markets, which provides linkages between the users and suppliers of the funds for long-term investment. A stock market mainly consists of stock (equity) and bonds markets. For macroeconomic management and development planning, an efficient stock market can play at least the following three pivotal roles: it can reflect the levels of overall and as well sectoral development, provide market indices and valuation ratios. Above all it can mobilize the funds from the domestic and external sources to the priority sectors of the economy and provide the indications, guidelines and information to the investors for their investment decision-making. An efficient stock market develops a path for smooth, simple and transparent opportunities of investment without undue risk and gambling factors. It is the right time for the government to sit with all the stakeholders in the stock market and take proper steps to stabilize the situation, in the greater interest of the small investors.
The study shows that the major reasons behind the stock market crash are irrational market behavior, inconsistency in regulations, excess liquidity in the market, stock split by companies, faulty listing system, issuance of right shares and preference shares by companies at high price, stock manipulations by insider trading, serial trading etc and excessive greed of investors. In most cases, investor’s behavior was natural and consistent to the standard behavior.