SEBI act 1992

5/2/2010

By Akash Saxena

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SEBI ACT 1992
‡ INTRODUCTION: in the The securities and exchange board of India Act 1992 was amended in the year 1995, 1999, and 2002, to meet the requirement of changing needs of the securities market and responding to the development in the securities market. The various malpractices and unfair trade practices adopted by the companies, brokers, bankers, and others involved in the securities market had led to erosion of investors confidence. The govt and the stock exchanges had also failed to protect the interest of investors because of the lack of proper panel. Realizing this, the SEBI was established by the govt in April 1988 as a supervisory body under the administrative control of finance ministry to regulate and promote securities market.

5/2/2010

By Akash Saxena

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Features of SEBI
1. 2. 3. a) b) c) d) 4. The SEBI shall be a body of corporate perpetual succession and common seal. The head office is at Mumbai and the board had established its offices at other places in India. The board shall consist of the following members: A chairman, Two members from among the officials of the Ministers of the Central govt dealing with finance and law, One member from amongst the officials of RBI, The two other members shall be appointed by the central govt. The general superintendence, director and management of affairs of the board shall vest in board of members.

5/2/2010

By Akash Saxena

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COND.
5. The govt can prescribe terms of office and other conditions of the chairman and other members of the board. 6. It is the primary duty of the board to protect the interest of the investors in securities and to promote the orderly growth of the security market.

OBJECTIVES:
1. 2. 3. 4. 5. To safeguard the investment of the investors. To regulate and develop capital and securities market. To fix the minimum application amount of Rs. 2000. To regulate the investment plan. Regulation of the shares of the company.
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COND.
6. To fix the minimum capital limit for the sale of shares. 7. To regulate the working. 8. To check inside trading of the securities. 9. Fixing up the fees in stock exchange for the brokers. 10.Calling information from underwriters and make the enquiry. 11.To supervise the working of various organization dealing in securities market.

5/2/2010

By Akash Saxena

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POWERS OF SEBI
1. SEBI can investigate in any matter relating to stock exchange. 2. SEBI can ask for any document relating to the investigation of the enquiry. 3. Suspension and cancellation of registration of any broker if found at mistake. 4. SEBI can file any complaint without the prior permission of the court. 5. Monetary fines can be imposed by SEBI

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By Akash Saxena

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FUNCTIONS OF SEBI
1) Regulating the business in stock exchange and any other securities market. 2) Registering and regulating the working of stock brokers, share transfer agent, bankers who may be associated with securities market in any manner. 3) Registering and regulating the working of collective investment schemes. 4) Promoting and regulating self regulating the organization. 5) Prohibiting fraud and unfair practices relating to the security market. 6) Calling for information, inspection and conducting audits. 7) Regulating acquisition of shares and take over of companies.

5/2/2010

By Akash Saxena

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ORGANISATION OF STOCK EXCHANGE IN INDIA
1. There are 23 stock exchanges functioning in India including Over The Counter Exchange of India (OCTEI) and National Stock Exchange (NSE). 2. Bombay Stock Exchange established in 1875 and is the oldest one in Asia. 3. Since 8th August BSE is a public limited company. 4. With about 10,000 listed companies, India holds the unique distinction of having the largest number of listed companies in the world. 5. The policy of the govt is that there shall be only one stock exchange in one area. 6. Each stock exchange is managed by an executive committee/ council of mgmt .
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MAJOR STOCK EXCHANGES OF INDIA
BOMBAY STOCK EXCHANGE: 1. BSE is one of the oldest stock exchange of India & Asia. 2. It is also one of the biggest stock exchange of the world. 3. It is said to be the nerve of the Indian Economy, which reveals the health of the economy. 4. BSE had a turnover of Rs. 68028 crs and a market capitalization of Rs 9,12,842 crs in 1999-2000. 5. Its daily turnover had increased from Rs 11 crs in 1979-1980 to Rs 4587 crs in 2000-2001. 6. It was established in 1857 and at that time its membership fee was Re 1. 7. It plays pivotal role in the development of the country¶s capital market.
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COND.
1. The vision of BSE is to ³Emerge as the premier Indian Stock Exchange by establishing global benchmarks.´ 2. BSE management is managed professionally by Board of Directors. 3. It comprises of eminent professionals, representatives of trading members and managing directors. 4. The board exercises complete control and formulates larger policy issues. 5. The day to day operations is managed by the managing director and its management team.

5/2/2010

By Akash Saxena

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NATIONAL STOCK EXCHANGE
1. NSE was incorporated in Nov 1992 with an equity capital of Rs 25 crs. 2. NSE operates into different segments as Wholesale Debt Market, capital market , derivatives market. 3. WDM is concerned with trading in Govt. Services, bonds etc. 4. Capital market is concerned with equity and corporate debt instruments by both entities and individuals. 5. The main objective of NSE is to establish nation wide trading facilities. 6. To facilitate equal access to investors across the country. 7. To provide fairness, efficiency and transparency to the securities. 8. To meet International Securities Market Standards.

5/2/2010

By Akash Saxena

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Stock Exchange Operations. Operations.
1. BULLS & BEARS: A bull is a buyer in the stock market. He is optimistic about the security prices. A bear is a seller of securities. 2. Order/Customer Driven & Quote/Dealer Driven Trading System: Trading in a stock exchange takes place on the basis of auction system on a trading floor . In an order driven system customers buys and sells orders and reach a central point where they are matched. In a quote driven system dealers compete to give the best price. 3. MARKET MAKER: Market maker makes both bid and offer at the same time. The quoted price which they would charge from a buyer is offer price The quoted price which they would pay to a seller is bid price.

5/2/2010

By Akash Saxena

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HAVE A NICE DAY

THANK YOU

5/2/2010

By Akash Saxena

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