Monetary and Fiscal Policy

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 Monetary and Fiscal Policy

 Monetary Policy – It refers to all actions of the

government or the Central government of a country which
affect, directly or indirectly the supply of money, credit,
rate of interest and banking system. Basically, the policy
affects the cost and availability of credit in the economy.

 Fiscal Policy – The policy is basically concerned with the

use of taxes and government expenditure through issues
relating to non-tax revenue, government borrowing.

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 Regulation of Stock Exchange

 In India the development of the stock market is

directed and the dealings on the stock exchange
are regulated by the Central Government in
accordance with the Securities Contracts
(Regulations) Act, 1956 (SCRA) and the
Securities and Exchange Board of India (SEBI)
established by the Central Government.

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Securities Contracts Regulations Act, 1956
(SCRA)

 An Act to prevent undesirable transactions

in securities by regulating the business of
dealing therein by providing for certain

other matters connected therewith.

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 ESTABLISHMENT OF SEBI

 The Securities and Exchange Board of India was established on April 12,
1992 in accordance with the provisions of the Securities and Exchange
Board of India Act, 1992.

PREAMBLE

 The Preamble of the Securities and Exchange Board of India describes the
basic functions of the Securities and Exchange Board of India as:

• “…..to protect the interests of investors in securities and to promote the

development of, and to regulate the securities market and for matters
connected therewith or incidental thereto”