Sebi as Regularoty Act

ii. Secondary Securities Market Modernization of market infrastructure improves market transparency standard. The improvement of market micro-structure increases trading efficiency. Risk containment measures help in improving market integrity and safety. Rolling settlement enhances liquidity and also provides for faster settlement. These have been the main focus of the SEBI’s efforts in the secondary market. The SEBI extends its oversight to 23 stock exchanges in the country and directs its efforts towards encouraging them to become more effective and efficient selfregulatory organisations. The measures taken by the SEBI in 1999-2000 in the secondary market are discussed below. Depositories and paperless trading and other related issues Dematerialisation of securities is one of the major steps for improving and modernizing market and enhancing the level of investor protection through elimination of bad deliveries and forgery of shares, and expediting the transfer of shares. Recognizing the far reaching benefits that would accrue to the market through the removal of physical securities, the speeding up of dematerialisation process has been high on the agenda of the SEBI. During the year 1999-2000, the SEBI continued its policy to enhance the growth of paperless trading and electronic book entry transfer but in a phased manner so as to allow time for required infrastructure to develop and to gain acceptance of the investors and the market. The following measures have been taken by the SEBI during the year under review :
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The SEBI issued directive to the companies included in the list of securities for dematerialisation to effect compulsory dematerialised trading for all investors and institutional investors on the scheduled dates announced and to sign agreements and complete all formalities with both the depositories and establish connectivity on time so that dematerialisation could proceed on schedule. Companies whose shares are being traded compulsorily in