The paper analyses the investments made in the regulated markets in Karnataka and their impact on the performance of these markets. Principal components analysis was employed to analyse performance indicators during pre- and postinvestment periods. Variations in amounts invested between markets indicated that only some markets have been developed. Comparison of factor loadings indicated that competition, commodity arrivals and number of notified commodities in regulated markets had increased during post-investment period. Grading activity showed reduced importance during post-investment period indicating the need to strengthen this function. Secretary cadre staff should also be increased to have more effective regulation
