Stock Index Futures Market. The report was submitted in november 1998.However the Securities Contracts (Regulation) Act, 1956 (SCRA) required amendment to include "derivatives" in thedefinition of securities to enable SEBI to introduce trading in derivatives. The necessary amendment was then carriedout by the Government in 1999. The Securities Laws (Amendment) Bill, 1999 was introduced. In December 1999 thenew framework was approved.Derivatives have been accorded the status of `Securities'. The ban imposed on trading in derivatives in 1969 under anotification issued by the Central Government was revoked. Thereafter SEBI formulated the necessaryregulations/bye-laws and intimated the Stock Exchanges in the year 2000. The derivative trading started in India atNSE in 2000 and BSE started trading in the year 2001.
SEBI IN SHORT
The Securities and Exchange Board of India (SEBI) is the regulatory authority in India established under Section 3 of SEBI Act, 1992. SEBI Act, 1992 provides for establishment of Securities and Exchange Board of India (SEBI) withstatutory powers for (a) protecting the interests of investors in securities (b) promoting the development of thesecurities market and (c) regulating the securities market. Its regulatory jurisdiction extends over corporates in theissuance of capital and transfer of securities, in addition to all intermediaries and persons associated with securitiesmarket. SEBI has been obligated to perform the aforesaid functions by such measures as it thinks fit. In particular, ithas powers for:
Regulating the business in stock exchanges and any other securities markets
Registering and regulating the working of stock brokers, sub-brokers etc.
Promoting and regulating self-regulatory organizations
Prohibiting fraudulent and unfair trade practices Calling for information from, undertaking inspection,conducting inquiries and audits of the stock exchanges, intermediaries, self - regulatory organizations,mutual funds and other persons associated with the securities market.
Sri C.B.Bhave is the Chairmain of
Mutual funds are investment companies that pool money from investors at large and offer to sell and buy back itsshares on a continuous basis and use the capital thus raised to invest in securities of different companies. This articlehelps you to know in depth on:
Is it possible to diversify investment if invested in mutual funds?
Find more on the working of mutual fund
Know more about the legal aspects in relation to the mutual fundsAt the beginning of this millennium, mutual funds out numbered all the listed securities in New York Stock Exchange.Mutual funds have an upper hand in terms of diversity and liquidity at lower cost in comparison to bonds and stocks.The popularity of mutual funds may be relatively new but not their origin which dates back to 18th century. Hollandsaw the origination of mutual funds in 1774 as investment trusts before spreading to Anglo-Saxon countries in itscurrent form by 1868.We will discuss now as to what are mutual funds before going on to seeing the advantages of mutual funds. Mutualfunds are investment companies that pool money from investors at large and offer to sell and buy back its shares ona continuous basis and use the capital thus raised to invest in securities of different companies. The stocks these