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PRESENTED BY :ATIMA SUNARYA (599

)
KRITIKA GUPTA (602)
SATAMITA GHOSH (608)
FMRS PRESENTATION
BANKING AND FINANCE (LLM) 2ND SEMESTER

An investor is a person who allocates capital
with the expectation of a financial return and
utilizes investment in order to grow their
money.
 this includes financial person who invests to
earn profit in future by investing in different
types of securities.
 like shares, mutual funds, debentures etc.

Safeguarding the interests and rights of investors
by the regulatory authorities through various
legislations and associated rules.
 it is a multi dimensional concept requiring
checks at various levels such as:
 Company level- disclosure and corporate
governance norms
 stock broker level- self regulated organization
of brokers.
 stock exchange level- each stock exchange has
its own mechanism for investor protection.

AGAINST COMPANIES : DELAY IN TRANSFER OF SHARES.
 NOT PAYING DIVIDEND.
 DELAY IN PAYMENT OF DIVIDEND.
 NOT ISSUING THE ORIGINAL SHARES.

 AGAINST

BROKERS : NOT ISSUING THE AGREEMENT NOTE.
 TAKING HIGH PAYMENTS AT THE TIME OF
SALES AND PURCHASES.
 TAKING HIGH PRICES AT THE TIME OF
PURCHASING OF SHARES.
 AGAINST DEPOSITORY PARTICIPANTS:
 DEBITING THE DEMAT A/C
 NOT SENDING THE ACCOUNT DESCRIPTION
BY THE ACCOUNT HOLDER.





MINISTRY OF FINANCE
RESERVE BANK OF INDIA
SECURITY EXCHANGE BOARD OF INDIA (SEBI)
BOMBAY STOCK EXCHANGE (BSE)
NATIONAL STOCK EXCHANGE (NSE)

The Ministry of Finance regulates through the
Department of Economic Affairs - Capital
Markets Division. The division is responsible
for formulating the policies related to the
orderly growth and development of the
securities markets (i.e. share, debt and
derivatives) as well as protecting the interest
of the investors.


investor protection act
foreign direct investment

 FOREIGN

INVESTMENT PROMOTION BOARD

LEADING STOCK EXCHANGES
 NATIONAL STOCK EXCHANGE.
 BOMABY STOCK EXCHANGE.
ROLE OF STOCK EXCHNAGES IN INVESTOR
PROTECTION stock exchange is required to set out and
implement rules and regulations to govern
the securities market.

These rules and regulations extend to
member registration, securities listing,
transaction monitoring, compliance by
members to SEBI / RBI regulations, investor
protection etc.
Each stock exchange has a set of Rules and
Regulations specifically applicable to each of
its trading segments.
stock exchanges as entities regulated by SEBI
undergoes regular inspections by them to
ensure compliance.

TO PROMOTE THE INTEREST OF INVESTORS , SO
THAT, THERE IS A STEADY FLOW OF SAVINGS
INTO THE CAPITAL MARKET.
 TO PROMOTE HEALTHY AND ORDERLY GROWTH
OF THE SECURITIES MARKET AND SECURE
INVESTOR PROTECTION.
 TO REGULATE THE SECURITIES MARKET AND
ENSURE FAIR PRACTICES.
 TO PROMOTE EFFICIENT SERVICES BY BROKERS,
MERCHANT BANKERS, FINANCIAL
INTERMEDIARIES , SO THAT, THEY BECOME
COMPETITIVE AND PROFESSIONAL.

REGULATORY FUNCTION
 DEVELOPMENTAL FUNCTION



REGULATIONS OF STOCK EXCHANGES AND SELF
REGULATORY ORGANIZATIONS.
REGISTRATION AND REGULATION OF STOCK BROKERS
, SUB – BROKERS , REGISTRARS OF ALL ISSUES ,
MERCHANT BANKERS, UNDERWRITERS , PORTFOLIO
MANAGERS ETC.
REGISTRATION AND REGULATION OF THE WORKING
OF COLLECTIVE INVESTMENT SCHEMES INCLUDING
MUTUAL FUNDS.
PROHIBITION OF FRAUDULENT AND UNFAIR TRADE
PRACTICES RELATING TO SECURITIES MARKET.
PROHIBITING INSIDER TRADING.

PROMOTING INVESTOR EDUCATION
 TRAINING OF INTERMEDIARIES
 CONDUCTING RESEARCH AND PUBLISHING
INFORMATION USEFUL TO ALL MARKET
PARTICIAPANTS.
 PROMOTING FAIR PRACTICES
 PROMOTION OF SELF REGULATORY
ORGANISATIONS.

1.
2.

3.

SEBI ISSUED OMBUDSMAN REGULATION IN 2003 TO
PROVIDE FAIR AND TRANSPARENT SYSTEM OF REDRESSAL
OF GRIEVANCE.
THESE REGULATION EMPOWER AN INVESTOR TO GET
REDRESSAL AGAINST BOTH THE COMPANY AND THE
INTERMEDIARIES.
COMPLAINTS DEALT BY OMBUDSMAN ACT ARE:
DELAYS IN RECEIVING REFUND ORDERS , ALLOTMENT
LETTERS, DIVIDEND OR INTEREST.
NON RECEIPT OF DIVIDEND , CERTIFICATES, BONUS
SHARES, ANNUAL REPORTS , REFUNDS IN ALLOTMENT OR
REDEMPTION OF MUTUAL FUND UNIT.
NON-RECEIPT OF LETTER OF OFFERS IS RESPECT OF BUY
BACK OF SHARES OR INCASE OF DELISTING


securities market awareness campaign 2003
SEBI (investor educations and protection
fund)regulations 2009
SEBI (issue of capital and disclosure
requirements) regulations, 2009