SEBI

&

SECURITIES CONTRACT REGULATION ACT 1956

Introduction of SEBI
The government of india set up the security exchange board of india (sebi)on 12th april 1988 as a non-statutory body through resolution for dealing with all matters relating to development and regulation of securities market and investor protection and to advise the government on all this matters

Introduction of securities contract regulation Act 1956

in securities by regulating the business of dealing in shares and other securities like bond The securities contract regulation act 1956 was passed in order to prevent undesirable transaction d and debentures.

Powers of SEBI
1.Obtaining annual reports. 2.Directing rules to be made or make rules. 3.Suspending business of recognised stock exchange. 4.Granting recognition to the stock exchange

Functions of SEBI
The SEBI Act, 1992 has entrusted with two functions, they are
1.Regulatory functions and

2.Developmental functions

Regulatory functions
Regulation of stock exchange and self regulatory organizations. Registration and regulation of stock brokers, subbrokers, registrars to, merchant bankers, underwriters, portfolio managers etc. Registration and regulation of working of collective investment schemes including mutual funds. Prohibition of fraudulent and unfair trade practices relating to securities market. Prohibition of insider trading.

Developmental functions
Promoting investors education. Training of intermediaries.

Conducting research and publishing information useful to all market participants. Promotion of fair practices.
Promotion of self regulatory organizations.

Classification of Securities
On the basis of return Sources of issue

Fixed income securities e.g. bonds debentures and preference shares. Variable income securities e.g. Eguties.

Government Semi government corporate

Conclusion
The financial sector in India is almost entirely owned and controlled by the government. The policies of public ownership, administrative regulation and control and consolidation have led to the growth of monopolistic market structure in the financial system. The companies act ,1956 is one of the most important law in Indian corporate Legislation. It has far reaching and all pervading effect on the Indian industry.