Impact of Demonetization on Share Prices of Companies Listed on National Stock Exchange

Abstract

newline Demonetization is the process by which currency notes of old denomination are fully withdrawn and brand new currency notes of differing denomination and design are introduced. The purpose of demonetization as cited by monetary and public policy experts is to reduce levels of unaccounted money in economies also known as black or parallel economy. The latest demonetization of Indian economy was announced on November 8, 2016 with an objective of curbing influence of black money, improving tax to GDP ratio, removing counterfeit currency, reducing corruption along with stifling of funds for terrorist and naxal activities. India has implemented demonetization twice earlier i.e. in the year 1946 and 1978.