Preview

SEBI

Powerful Essays
Open Document
Open Document
4119 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
SEBI
ENVIRONMENT OF FINANCIAL SYSTEMS

Securities Exchange Board of India

1. History
In 1988 the Securities and Exchange Board of India (SEBI) was established by the Government of India through an executive resolution, and was subsequently upgraded as a fully autonomous body (a statutory Board) in the year 1992 with the passing of the Securities and Exchange Board of India Act (SEBI Act) on 30th January 1992. In place of Government Control, a statutory and autonomous regulatory board with defined responsibilities, to cover both development & regulation of the market, and independent powers have been set up. Paradoxically this is a positive outcome of the Securities Scam of 1990-91.

The basic objectives of the Board were identified as: to protect the interests of investors in securities; to promote the development of Securities Market; to regulate the securities market and for matters connected therewith or incidental thereto.

Since its inception SEBI has been targetting the securities and is attending to the fulfillment of its objectives with commendable zeal and dexterity. The improvements in the securities markets like capitalization requirements, margining, establishment of clearing corporations etc. reduced the risk of credit and also reduced the market.

SEBI has introduced the comprehensive regulatory measures, prescribed registration norms, the eligibility criteria, the code of obligations and the code of conduct for different intermediaries like, bankers to issue, merchant bankers, brokers and sub-brokers, registrars, portfolio managers, credit rating agencies, underwriters and others. It has framed bye-laws, risk identification and risk management systems for Clearing houses of stock exchanges, surveillance system etc. which has made dealing in securities both safe and transparent to the end investor.

Another significant event is the approval of trading in stock indices (like S&P CNX Nifty & Sensex) in 2000. A market Index is a

You May Also Find These Documents Helpful

  • Good Essays

    John Updike's "A&P" narrates a good story that most of its readers get caught up in the flow and attractiveness of its content. At some point, it can be difficult to tell who is narrating the story. One of the most challenging ideas in starting the investigation of fiction is the story's point of view or its perspective. But a story is decorated with the type, the tone, and the perspective of the voice telling it. Therefore, it is important for a reader to identify the narrator's voice so that he or she can identify and examine what effects that voice has on how they view the story.…

    • 919 Words
    • 4 Pages
    Good Essays
  • Good Essays

    In McKay report to Expert Panel on Securities Regulation, it has been 10 years since the discussion about improvement on Canadian Regulatory Framework that indicate changes have to be done. Major and minor obstacles have been debated since which calls for action of changes. In this research I will try to explain how and why changes are needed for securities regulation in Canada in order to bring our capital market compete-able with the rest of the world while in the same time provides high securities for all the stakeholders and backed by the federal government.…

    • 1212 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    The Securities and Exchange Commission (SEC) website contains information useful for a variety of finance divisions. The SEC’s main purpose is to protect investors, ensure fair markets with maintaining order and efficiency. The SEC also facilitates capital information. The information provided pertains to accountants, brokers, advisers, businesses, municipal markets, international markets and more. At the site a financial analyst could find topics regarding corporate finance, rule enforcement, investment management, and markets. Also there is news and informative…

    • 287 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    This chapter is about how Richard organized his report and how he rewrote it 23 times. He would write something, then a team would help him rearrange what he wrote. Richard called this “wordsmithing”. Richard and the team of people helping him write disagreed on a lot of things in his report. Richard’s was upset because he had done all this work just for his report to be in the appendix.…

    • 1169 Words
    • 5 Pages
    Powerful Essays
  • Satisfactory Essays

    SEBI has clarified that there is no change in the rules relating to FIIs except for the strengthening of KYC Norms. They have also given a ruling which states that from Now on, The PNs can only be issued to Registered Entities. The actual investing parties must be registered with the regulator of their country of Incorporation. In addition, to facilitate the process of transition, derivative instruments already issued and outstanding against un-regulated entities will not be required to be terminated immediately. It has been decided that the said contracts will be permitted to expire or to be wound - down on maturity, or within a period of 5 years, whichever is…

    • 327 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Sahara vs Sebi Case

    • 1633 Words
    • 7 Pages

    On, 31st Aug, 2012, Supreme Court of India passed a landmark judgment wherein, the honorable court ordered business conglomerate and leading sports sponsor Sahara to refund more than $3 billion it collected from millions of small savers. It all started when in 2008 the two companies of the group Sahara India Real Estate Corporation Ltd. (SIRECL) and the Sahara Housing Investment Corporation Ltd. (SHICL) started raising funds through Red Herring Prospectus (RHPs), and had collected  Rs 17, 400 till March 13, 2008, &  Over Rs 7, 000 till October 16, 2009 In the meanwhile, SEBI i.e. Securities and Exchange Board of India, in Nov 2010, had restrained the above two companies from raising funds in the form of Optionally Fully Convertible Debentures (OFCD), against which in Dec 2010, Sahara got SEBI order stayed in Allahabad High Court. In Jan 2011, SEBI issued advertisements cautioning investors, in Apr 2011 Allahabad asked Sahara to go to the apex court. In May 2011, SC asks SEBI to continue its OFCD probe.…

    • 1633 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    The Securities Industry Act , which is formed on the provisions and structure of the Australian Corporations Law and the Hong Kong Securities and Futures Commission, is part of the securities regulation regime, which administers the issuance, distribution and trading of securities in Malaysia. The basic objective of setting up the Commission was to put in place a central authority to implement and oversee the regulatory framework for trade in securities and futures . The duty for regulatory oversight of trading in securities rests with the Securities Commission established under the Securities Commission Act (SCA).…

    • 3068 Words
    • 13 Pages
    Powerful Essays
  • Powerful Essays

    The Securities Commission Malaysia (SC), is responsible for the regulation and development of capital markets in Malaysia. Established on 1 March 1993 under the Securities Commission Act 1993, it is a self-funding statutory body with investigative and enforcement powers. It reports to the Minister of Finance and its accounts are tabled in Parliament annually. The SC's many regulatory functions include:…

    • 1645 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Sebi

    • 2018 Words
    • 9 Pages

    Established in 1988 and became a fully autonomous body by the year 1992 with defined responsibilities to cover both development & regulation of the market. Region wise SEBI addresses and contact numbers are given so that investor grievances regarding CIS and for any other information may be contacted.…

    • 2018 Words
    • 9 Pages
    Powerful Essays
  • Better Essays

    The bye-law and business rules are designed by the depository based on the above to govern its functioning and…

    • 1344 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    Collage Project

    • 3884 Words
    • 16 Pages

    in and the like. SEBI had issued guidelines for the protection of the investors through the…

    • 3884 Words
    • 16 Pages
    Powerful Essays
  • Satisfactory Essays

    Non-Directive Counseling

    • 289 Words
    • 2 Pages

    -Counseling procedure in which the counselor is empathetic and does not evaluate or direct (but may clarify) clients' remarks, thus assisting them to accept responsibility for their own problem-solving.…

    • 289 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    | | |all securities defined as such under the Securities Contracts (Regulations) Act, 1956 and all other instruments of any kind including|…

    • 19849 Words
    • 80 Pages
    Good Essays
  • Powerful Essays

    Tug Of War Analysis

    • 1657 Words
    • 7 Pages

    It also provides a set of recommendations, which could help in preventing recurrence of such crisis. It has suggested reforms across the SECP, stock exchanges, Central Depository Company (CDC) and National Clearing Company of Pakistan (NCCPL). For improved co-ordination, the SECP entered into an MOU with the State Bank in March 2009. The SECP is devising broad policy parameters through which it can intervene under the emergency powers. In order to address the need for developing a long term strategy and plan for development of stock market, the SECP has drafted a capital market development plan, which will be rolled out once the consultation process with the stakeholders is…

    • 1657 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Share Market

    • 6069 Words
    • 25 Pages

    • The BSE SENSEX, also called "BSE 30", is a widely used market index in India and Asia.…

    • 6069 Words
    • 25 Pages
    Powerful Essays