Regulation of Stock Exchanges in India

Research Dissertation submitted to

Amity Institute of Advanced Legal Studies

Amity University Uttar Pradesh

In Part Fulfilment of Requirements for the Degree of

Master of Laws (LLM)

Ramansha Paul
LLM (Business Law)
Enrolment No. A0319318056
Batch: 2018-19
 CHAPTERIZATION

CHAPTER-1: Historical Background and Origin

1.1 Historical Background
1.2 Classification of Market
1.3 Origin of Indian stock market

CHAPTER-2: Meaning and Powers of Stock Exchanges

2.1 Meaning of the Stock Exchanges
2.2 Powers of the Stock Exchanges
2.3 Functions of Stock Exchanges

CHAPTER-3: Getting Listed on Stock Exchange

3.1 Meaning and Concept of Listing
3.2 Procedure of Getting Listed on Stock Exchange
3.3 Advantages of Getting Listed
3.4 Meaning and Concept of Delisting

CHAPTER-4: Regulation Over the Intermediaries by Stock Exchange

4.1 Concept of Intermediary in Stock Market
4.2 Need of Intermediary in Stock Market
4.3 Who are Intermediaries
4.4 Need of Regulation Over the Intermediaries

CHAPTER-5: Role of SEBI in Stock Exchange

5.1 Purpose of the Establishment of SEBI
5.2 Powers of SEBI
5.3 Role of SEBI in Regulating Stock Exchange

CHAPTER-6: Judicial Response to Powers of Stock Exchange

6.1 Segregation of Ownership, Management and trading
6.2 Powers to Make By-Laws by Stock Exchanges
6.3 Powers to Refuse Listing
6.4 Powers to Impose Terms and Conditions on Intermediaries

CHAPTER-7: CONCLUSION
7.1 Conclusions Derived from the Information
7.2 Suggestions
 CHAPTER-1
HISTORICAL BACKGROUND AND ORIGIN

1.1 HISTORICAL BACKGROUND

The stock exchange or market is a place where stocks, shares or other long haul ventures are
purchased and sold. Initially the stock market was built as an agreeable society of the
individuals from the trade where exchange of trade and the conduction of business was
carried based on the collaboration between the individuals of the society. At first the intention
of this was simply the conduction of the exchange between the financial specialists and of the
gaining of benefit by the trade, with the progression of time there was an adjustment in this
methodology and the need was felt to change over the agreeable society into a business entity
dependent on the corporatisation and demutualisation of the trade1.

The history of stock exchanges can be laid from 11 th century by the Muslims and Jewish
merchants. Consequently in Netherlands in the 14th century the Dutch had begun the business
entities and in the year 1602 Amsterdam Stock Exchange 2 was set up. This stock exchange
was the very first one to issue securities to the general public. This development in the stock
market had cleared path for the foundation of stock trades.

The cause of the New York trade can be followed in the 18 th century, 1792, where 24
intermediaries had assembled to sign an agreement that would set up the guidelines for
purchasing and selling the bonds and shares of the organization. This agreement is known as
the buttonwood agreement as it was signed outside a wall street under the buttonwood tree.
The underwriters of the Buttonwood understanding in 1817 had named there association as
New York Stock Exchange Board3. Today the New York Stock Exchange board has turned
out to be one of the biggest stock exchanges on a global level. London Stock exchange was
also established in 1698 and today it has developed to a large extend by having 3500
companies listed under i4t.

Other than the above expressed stock trades that were set up in the western piece of the
world, the financial exchange created in the eastern world also with the establishment of
Tokyo Stock Exchange in the year 1878 and issued bonds to the former samurai. By 1920s
Japan had encountered a widespread development in their economy, exchanging stocks over
bonds and gold and silver monetary forms turned into standard. The trade was closed down in
1945 and was revived in the year 1949 under the direction of American experts after the
second world war. Today Tokyo Stock Exchange5 has 2375 domestic and 27 foreign
companies listed on it.

The Singapore stock exchange6 was established on 1st December 1999, following the
amalgamation of stock exchange of Singapore and Singapore international monetary
exchange. It was Asia’s first electronic and floorless stock exchange

Amid the eighteenth and nineteenth hundreds of years, India provided Britain with crude
materials and a business opportunity for fabricated items. England turned out to be
progressively dependent on India for crude materials, for example, cotton, particularly amid
the American Civil War. The resultant riches age in India made a requirement for genuine
methods for venture instead of widespread chaotic hypothesis in securities. To this end, a
gathering of intermediaries made the Native Share and Stockbrokers Association, which later
turned into the Bombay Stock Exchange7 (BSE) in 1875. The Bombay Stock Exchange
Limited is the most seasoned stock trade in Asia and was the main stock trade to be perceived
by the Indian government, in 1956. Today, the BSE is expertly overseen under the general
bearing of the top managerial staff, which figures bigger strategy issues and activities by and
large control. The board includes prominent experts, delegates of exchanging individuals and
the overseeing chief of the BSE. Notwithstanding the BSE, there are two other primary traded
– the National Stock Exchange8 (NSE) and the Over the Counter Exchange of India Limited
(OTCEI) – which work at a national dimension. The NSE is the world's third biggest stock
trade as far as exchanges and is likewise situated in Mumbai. The OTCEI, which works from
Mumbai, Kolkata and New Delhi, is a one of a kind stock trade fit to little and medium-sized
firms hoping to access the capital markets. Usually the trading of decision for innovation and
development stocks.

The stock exchange is viewed as as a standout amongst the most significant part of the
economy of the nation. it is a delegate of the strength of the organization. The securities
exchanges of a nation are viewed as a marker of the general strength of the economy. the
level of the steadiness of the economy can be estimated by the level of the solidness of stock
trades in the nation. The financial exchange of a steady economy demonstrates a lesser
vacillation while the securities exchanges of a temperamental economy demonstrates a higher
variance.
Moreover, it also prepares the sparing and makes an environment for speculation. this is a
standout amongst the most significant explanations for the expanded significance of the stock
trades in a nation. The securities exchange assembles the funds of an expansive pool of
people to make an extensive pool of sparing that can be contributed by the organizations to
back their operational exercises. It is likewise a method for getting outside financial
specialists in the nation. this is viewed as the most recent pattern today. The remote
speculators get a chance to contribute the same number of the Indian organizations are
recorded on the outside stock trades too. It raises the capital for operational exercises. this is
the essential explanation for the foundation of the stock trades. the financial exchanges were
set up in the nation to enable the organization to raise money to support their operational
exercises.

In the year 1956 the Securities Contract (Regulation) Act was established, as prior to this act ,
the securities showcase in India was unregulated and was priorly administered through the
ordinary practices of the people who were managing in the securities. The establishment of
the Securities Contract (Regulation) Act had prompted the reconstruction of the securities
advertise in the nation. it had made the stock trade as foundation through the methods of
corporatisation and demutualisation for the prior exam of helpful society.

The term derivative alludes to a sort of security that has been gotten from some other spot.
the different kinds of exchanges that happen in the securities advertise forward, fates and
alternatives.

There are various functions which are performed by the derivative market9.

 The subsidiaries redistribute the hazard between the market players and are helpful in
risk management for the executives. Subsidiary instruments do not have any hazard
on the venture.
 The subsidiaries advertise is the first to respond on the financial exchange data and
hence aid better value revelation. the exchange cost is lower in these business sectors
than in the spot markets.
 The subsidiaries markets add to the fulfilment of the market. A market would be
finished if the instruments or securities might be made which can give a spread
against all conceivable unfriendly results.
The derivative market is an incredible favourable position to a nation like India, where a
large number of the people are as yet unconscious of the conduction of exchanging the
securities advertise. since the subordinate market is a more secure market to contribute than
the spot advertise. taking into account that the industrialisation is still on the ascent in India.
the subsidiary market has an incredible breadth to create in future. The opposite side of the
story is that the subsidiary is the sort of the unsafe market as the financial specialists are
permitted to sell their securities without owning it. this makes a chance of theory in the trade
accordingly putting the speculators who put resources into these stocks at a hazard on causing
a loss.

Requirement for guideline: The need to manage the financial exchanges was first felt in the
year 1921 when Atlay advisory group suggested Bombay Exchange Securities contract
Control Act was passed in the year 1925. Later on due to the underneath expressed reasons,
there was an expanded need felt to manage the securities exchanges. They might be listed as
pursues

 Tremendous increment in the volume of exchange: This was the principal explanation
for the expanded requirement for the guideline of the Stock Exchanges in the nation.
The stock trades that were made before were intended to complete a specific volume
of exchange. The selection of the new monetary strategy in the year 1991, had
expanded the dimensions of exchange to a dimension that vas not conceived before.
This had rendered the present framework unfit to deal with the volume of exchanges
 Adoption of out of line rehearses by financial specialists: With the development of the
capital markets in the nation, there were numerous examples of the appropriation of
the unreasonable exchange rehearses by the different speculators. The utilization of
the uncalled for exchange practices, for example, offer gear had prompted a
misfortune o may guiltless financial specialists.
 Failure of the present framework to adapt up to the development: This was another
reason that was credited to the requirement for guideline of the Stock Exchanges. The
present arrangement of financial exchanges that had been made quite a while back
was unfit to adapt up to the development of the securities exchanges which had
rendered the securities exchanges inadequate. This had prompted the emerging of the
need so as to adapt up to the development of the securities exchanges.
  To fabricate a more noteworthy trust of the financial specialists: This is another
explanation for the expanded requirement for the guideline of the Stock Exchanges.
The guideline of the Stock Exchanges will assemble a more noteworthy trust in the
financial specialists who put resources into these securities. The purpose for the
production of a more noteworthy trust is that the improvement of a more prominent
trust will pull in a more prominent measure of interest according to the financial
specialists both current just as imminent.
 To make an air for sound venture: This is the last purpose for the emerging of the
requirement for a guideline of the Stock Exchanges. A more noteworthy measure of
guideline of the stock trades will make a general air for sound interest in the zone
where the exchanges are directed.

The above expressed reasons are a portion of the significant reasons because of which there
has been a need emerging for the guideline of the Stock Exchanges in the nation. A more
prominent guideline will positively pull in a more prominent measure of speculation from the
different various segments of the general public, in this way quickening the development of
the modern division in the nation.

1.2 CLASIIFICATION OF MARKET

The financial exchange includes two markets10, viz., the essential market and the optional
market. The advancement and the improvement of different stock trades in India and Abroad
were exhibited quickly. The Stock Exchange is a key establishment encouraging the issue and
closeout of different kinds of securities. It is rotate around which each action of the capital
market spins. Without the stock trade, the general population with funds would scarcely put
resources into corporate securities for which there would be no liquidity (purchasing and
selling office). Corporate speculations from an overall population would have been
accordingly lower. The stock trades are for all intents and purposes the operational hub of the
capital market and mirror the soundness of the nation's economy overall.

THE PRIMARY MARKET: – The essential market gives the channel to closeout of new
securities, while the optional market bargains in securities beforehand issued. The essential
market comprises of new issues of capital (value, debentures, securities and so on.) by
new/existing organizations. For this situation, the corporate body welcomes applications to
the issue of value or debentures by filling the plan or letter of offer. The application structures
can be acquired from the investors/trader financiers of the issues, agents and so forth.

Investors subscribe to issue these by filling in the application forms & remitting the requisite
amount to the designated banks (listed on the reverse of the application) within the time
frame for which the membership list is open. The membership list is generally kept open for
3 days. The organization in consultation with its shipper financiers and the Stock Exchange
Authorities is relied upon to finish the rundown of fruitful applications inside 10 weeks. The
share/debenture certificates are dispatched to the successful application while refund orders
are posted to the others. If the amount paid on application is only half the face/nominal value,
the company must mention the date by which the successful applicants are required to pay the
balance. The company normally gives an allotment advice & after remittance of the first/final
call, the fully paid share certificate is sent to the investor.

On the off chance that the candidate does not get notification from the organization with
respect to designation/discount, he can approach the dealer financier to the issue and the
Securities and the Exchange Board of India, stopping a composed grumbling giving points of
interest of the application structure no., the bank at which the application was held up, and so
forth the securities are recorded by the concerned trade once the organization agrees to the
posting understanding of the trade. When the offers/debentures are recorded, advertise
powers chose the cost of the equivalent the financial specialist's impression of the
organization, its administration, the industry potential, the general monetary condition, and so
forth.

The essential market is a discontinuous and discrete market where the at first recorded offers
are exchanged first time, changing hands from the recorded organization to the speculators. It
alludes to the procedure through which the organizations, the guarantors of stocks, obtain
capital by offering their stocks to financial specialists who supply the capital. At the end of
the day essential market is that piece of the capital markets that manages the issuance of new
securities. Organizations, governments or open segment establishments can get subsidizing
through the clearance of another stock or bond issue. This is ordinarily done through a
syndicate of securities vendors. The way toward pitching new issues to financial specialists is
called guaranteeing. On account of another stock issue, this deal is called a first sale of stock
(IPO). Vendors acquire a commission that is incorporated with the cost of the security
offering, however it tends to be found in the outline.’
2. THE SECONDARY MARKET: The optional market is the place recorded securities are
purchased and sold. Offers are regularly issued having an assumed worth of Rs. 10 or Rs.
100. The exchanging is typically done in what are known as market parcels. For an offer of
assumed worth Rs. 10, the market parcel is 50 or 100 and for Rs. 100, the market part is 1 or
5 shares separately. Secondary Market is where, not normal for the essential market, a
financial specialist can purchase a security legitimately from another speculator in lieu of the
backer. It is additionally alluded as "reseller's exchange". The securities at first are issued in
the essential market, and afterward they go into the auxiliary market. As it were, optional
market is where any sorts of utilized products are accessible. In the auxiliary pieces of the pie
are moved from one financial specialist to other, that is, one speculator purchases a benefit
from another speculator rather than an issuing organization. Along these lines, the auxiliary
market ought to be fluid. Case of auxiliary market is New York Stock Exchange, in the
United States of America; every one of the securities have a place with the optional market.
The optional market has a significant task to carry out behind the improvements of an
effective capital market. Auxiliary market associates financial specialists' preference for
liquidity with the capital clients' desire of utilizing their capital for a more extended period.
For instance, in a customary organization, an accomplice can't get to the next accomplice's
speculation however just his or her interest in that association, even on a crisis premise. At
that point on the off chance that the person may breaks the responsibility for into parts and
pitch his or her separate extent to another speculator. This sort of exchanging is encouraged
just by the auxiliary market.

The secondary market is an on-going business sector, which is furnished and composed with
a spot, offices and different assets required for exchanging securities after their underlying
advertising. It alludes to a particular spot where securities exchange among numerous and
unspecified people is brought out through intermediation of the securities firms, i.e., an
authorized merchant, and the trades, a specific exchanging association, as per the guidelines
and guidelines built up by the trades.

1.3 ORIGIN OF INDIAN STOCK MARKET

The beginning of the securities exchange relates back to the year 1494, when the Amsterdam
Stock Exchange was set up. In India it goes back to the eighteenth century, a period when the
East India Company was an overwhelming Institution in India. The genuine start happened
amidst the nineteenth century after the establishment of the organizations Act in 1850, which
presented the highlights of restricted risk and produced speculator enthusiasm for corporate
securities. A significant early occasion in the improvement of the securities exchange in India
was the arrangement of the local offer and stock dealers 'Relationship at Bombay in 1875, the
forerunner of the present day Bombay Stock Exchange.

The Ahmadabad Shares and Stock Association" was establsihed in the year 1894. The
Calcutta Stock Exchange Association was shaped by around 150 intermediaries on fifteenth
June 1908. In the year 1920, one stock trade was built up in Northern India and one in
Madras called "The Madras Stock Exchange". "The Madras Stock Exchange Association Pvt.
Ltd." was built up in the year 1941. On 29th April 1959, it was revamped as an organization
constrained by certification under the name and style of "Madras Stock Exchange" (MSE).
The Lahore Stock Exchange was framed in the year 1934. Anyway in the year 1936 after the
Punjab Stock Exchange Ltd. appeared, the Lahore Stock Exchange converged with it. In
Calcutta, a second Stock Exchange by name "The Bengal Share and Stock Exchange Ltd."
was built up in the year 1937 and similarly by and by in the year 1938, Bombay likewise saw
an opponent Stock Exchange framed for the sake of "Indian Stock Exchange Ltd." The U.P.
Stock Exchange was framed in Kanpur and the Nagpur Stock Exchange Ltd. in Nagpur in the
year 1940. The Hyderabad Stock Exchange Ltd. was joined in the year 1944. Two stock
trades which appeared in Delhi by the name "The Delhi Stock and Share Brokers Association
Ltd." and "The Delhi Stocks and Shares Exchange Association Ltd." were amalgamated into
"The Delhi Stock Exchange Association Ltd." in the year 1947. Hence the Bangalore Stock
Exchange was enrolled in the year 1957 and perceived in the year 1963. The third stock trade
in the province of Gujarat the "Vadodara Stock Exchange Ltd." was consolidated in 1990.
The Over the Counter Exchange of India (OTCEI) comprehensively dependent on the lines of
NASDAQ (National Association of Securities Dealers Automated Quotation) of the USA
was advanced and endorsed on August 1989. The National Stock Exchange of India Ltd. was
joined in November 1992.

Without a stock trade, the sparing of the network the ligaments of financial advancement and
beneficial proficiency would remain underutilized. The undertaking of preparation and
allotment of reserve funds could be endeavoured in the days of yore by a significantly less
specific foundation than the stock trades. Be that as it may, as business and industry extended
and the economy accepted progressively complex nature, the requirement for 'changeless
fund' emerged. Business people required cash for long haul though financial specialists
requested liquidity – the office to change over their venture into money at some random time.
The appropriate response was a prepared market for speculations and this was the means by
which the stock trade appeared. Stock trade implies a group of people, regardless of whether
fused or not, comprised to direct or controlling the matter of purchasing, selling or managing
in securities.

These securities include:

 Shares, scrip, stocks, securities, debentures stock or other attractive securities of a

like sort in or of any fused organization or other body corporate;
 Government securities; and
 Rights or enthusiasm for securities.

The Bombay Stock Exchange (BSE) and the National Stock Exchange of India Ltd (NSE) are
the two essential trades in India. Moreover, there are 22 Regional Stock Exchanges. Be that
as it may, the BSE and NSE have set up themselves as the two driving trades and record for
around 80 percent of the value volume exchanged India. The NSE and BSE are equivalent in
size as far as day by day exchanged volume. The normal every day turnover at the trades has
expanded from Rs 851 crore in 1997-98 to Rs 1,284 crore in 1998-99 and further to Rs 2,273
crore in 1999-2000 (April – August 1999). NSE has around 1500 offers recorded with an all
out market capitalization of around Rs 9, 21,500 crore.

The BSE has more than 6000 stocks recorded and has a market capitalization of around Rs 9,
68,000 crore. Most key stocks are exchanged on both the trades and thus the speculator could
get them on either trade. The two trades have an alternate settlement cycle, which enables
speculators to move their situations on the bourses. The essential list of BSE will be BSE
Sensex containing 30 stocks. NSE has the S&P NSE 50 Index (Nifty) which comprises of
fifty stocks. The BSE Sensex is the more established and all the more generally pursued list.

The NSE is possessed by a lot of driving Indian and International monetary foundations,
banks, insurance agencies, private value reserves, common assets, investment reserves and so
on. NSE was consolidated in November 1992, and got acknowledgment as a stock trade
under the Securities Contracts (Regulation) Act, 1956 in April 1993. It is overseen by experts
who don't legitimately or by implication exchange on the Exchange. The exchanging rights
are with exchanging individuals who offer their administrations to the financial specialists.
The Board of NSE includes senior administrators from advertiser organizations and famous
experts, without having any portrayal from exchanging individuals. While the Board manages
the expansive strategy issues, the Executive Committees (ECs), which incorporate
exchanging individuals, framed under the Articles of Association and the Rules of NSE for
various market sections, set out guidelines and parameters to deal with the day-today issues
of the Exchange. The everyday administration of the Exchange is assigned to the Managing
Director and CEO who is upheld by a group of expert staff. In this way, however the job of
exchanging individuals at NSE is to the degree of giving just exchanging administrations to
the financial specialists, the Exchange includes exchanging individuals the procedure of
conference and interest in imperative contributions towards basic leadership
 CHAPTER-2

MEANING AND FUNCTIONS OF STOCK EXCHANGE

2.1 MEANING OF STOCK EXCHANGE

According to the Securities Contract (Regulation) Act a stock exchange is an “affiliation,

association or an assemblage of individual whether fused or not set up to help, guideline and
controlling business in purchasing, selling and managing in securities”11.

According to the Companies Act 1956 stock exchange can be defined as “ a perceived stock
trade implies in connection to any arrangement of this demonstration in which it happens a
stock trade whether in or outside India, which is told by the focal government in the official
newspaper as a perceived stock trade for the motivations behind that arrangement12".

The stock exchange can also be characterized as an assemblage of people, regardless of

whether joined or not, established to assist, directing or selecting the matter of purchasing,
selling or managing in securities.

However, according to the Companies Act, 1956, no company, association or partnership

consisting of more than 20 persons shall be formed for the purpose of carrying on any
business (other than banking) that has for its object of acquisition of gain by the company
association or partnership or by the individual members thereof, unless it is registered as a
company under this act, or is formed in the pursuance of some other law. Stock exchanges are
generally formed either as association or as companies under section 25 of the Companies
Act, 1956.

Stock exchange is also the market in which shares are issued and exchanged either through
trades or over the counter markets. Otherwise called the equity market. It is a standout
amongst the most fundamental zones of the market economy as it gives the organizations
access to capital and speculators with a cut of possession in the organization and the
capability of the organization dependent on the organization future execution. So as for stock
exchange to get recognised in the nation it basically must follow the procedure laid down by
the central government for recognition.

2.2 POWERS OF STOCK EXCHANGE

Powers that are vested with the Stock Exchange: The Stock Exchanges are vested with a wide
assortment of powers. They are as per the following13 :

1. The opening and shutting of business sectors and guideline of long periods of
exchange: The Stock Exchange has the ability to direct the season of opening and
shutting of the stock trade and to manage the long stretches of exchange of the trade.

2. Clearing house works: The Stock Exchange acts like a clearing house for the different
securities that are recorded on it. It plays out the errand of the approvals, conveyance and
the settlement of the exchanges in the securities.

3. Accommodation of different returns: The Stock Exchange has the ability to request the
accommodation of the profits with respect to the different parts of the recorded
organizations that may influence the choice of the speculators.

4. The distribution of the clearing house works: The clearing house works that the Stock
Exchange plays out that has been expressed above is distributed by it through the mode
of the different stock lists

5. The guideline and forbiddance of clear exchanges: The Stock Exchange has been
consulted with the ability to manage and restrict the conduction of the clear exchange
between the financial specialists
6. The number and classes of securities that can be managed through the clearing house:
The Stock Exchanges may plainly determine the number and classes of the securities that
might be managed through the mode of the clearing house

7. The guideline of the forbiddance of budlas or convey forward offices: The Stock
Exchanges have been vested with the ability to manage the disallowance of the budla
exchanges of the securities or the convey forward offices.

8. The fixing, modifying or deferring the days for settlements: The Stock Exchanges
have the ability to fix, change or delay the days for the settlement of the exchange of the
securities that happen.

9. The assurance and affirmation of the market rates for the securities: The Stock
Exchanges have the ability to decide and proclaim the market rates of the different
recorded securities.

10. Choice of the subtleties of the agreements: The Stock Exchange in a nation has the
last expert to take the choices with respect to the subtleties of the different contracts that
host been closed by the different gatherings of the securities that have been recorded on
the concerned stock trade.

Some different forces vested with the Stock Exchanges are14:

11. The guideline of the securities gets: The Stock Exchanges have been vested with the
ability to manage the agreements concerning the securities advertise that happen on it.

12. The guideline of Taravani business including the putting of constraints subsequently:
The Stock Exchanges have the ability to direct the conduction of the taravani business
and spot certain restrictions on its conduction.

13. The posting of securities on a Stock Exchange: The Stock Exchange has the ability to
make the guidelines with respect of the posting of the securities on the Stock Exchange
to be exchanged from that point.
14. The technique and system of the settlement of the cases or question: The Stock Trade
may make its very own technique for the settlement of the cases and question with
respect to the securities exchanges occurring on it.

15. The duty and recuperation of expenses, fines and punishments: The Stock Exchanges
have the ability to demand the charges for the doing of the different exchanges and
furthermore to force the fines and punishments for the demonstrations that have been
stipulated under the demonstration.
16. The guideline of the course of business between gatherings to the agreement in any
way: The stock trade has the ability to manage the course of business that is directed
between the gatherings in any way.

17. The fixing of the size of business and different charges: The stock trade has the
ability to fix the size of the financier that might be charged by the intermediaries among
the different charges for the completing of the exchange in the securities on the stock
trade.

18. The creation, contrasting, settling and shutting of deals: The stock trade plays out the
capacity of the creation, looking at, settling and shutting of the deals of the exchanges
that occur on the stock trade

Other than the above expressed forces, different powers of the stock trades are:

19. The forces that might be practiced in crisis: The stock trade has the ability to decide
with respect to what circumstance would be ordered as a circumstance of crisis and to
accommodate the forces that might be practiced in those circumstances.

20. The guideline of the dealings by individuals for their own record: The stock trades
are vested with the forces to direct the dealings by the individuals for their very own
record in the stock trades of the nation.

21. The detachment of the elements of intermediaries and middlemen: The stock trade
has the ability to separate the capacities that might be completed by the dealers and the
agents on the stock trade.
22. The confinements on the volume of exchange done by any individual part
outstanding conditions: The stock trades have the ability to force restrictions on the
volumes of exchange that might be led by any individual part in the uncommon
conditions consequently putting a constraint on the measure of exchange made.

23. The commitment of the individuals to supply such data or clarifications and to create
such reports The stock trade has the ability to commit the individuals to supply such data
or clarifications concerning the conduction of the exchanges and produce the records in
evidence of the exchanges directed as might be required every once in a while.

As I would see it, the above expressed rundown of the forces that have been expressed is
despite the fact that a thorough rundown of capacities that it performs at the present. The
rundown of forces, be that as it may, has a further extent of extension with the expansion
in the job of the stock trades in the economy of a nation, which might be done later on
through the alteration in the rules and the development of the financial action in world.

2.3 FUNCTIONS OF STOCK EXCHANGE

The financial exchange in India plays out the accompanying functions15:

1. It gives as a prepared market to securities: The stock trade is a prepared market for the
securities the same number of merchants and purchasers of the securities get along
together at a typical spot.

2. It gives liquidity: The stock trade helps in the giving of liquidity by giving to the
simple closeout of the securities held by a speculator along these lines guaranteeing that
the cash that has been contributed by a financial specialist isn't obstructed for a
significant lot of time.

3. It guarantees simple debatability of securities: The stock trade helps in the simple
debatability of the securities as it gives a typical stage to the purchasers and dealers to
approach to direct the exchanging of the different securities
4. It helps in the simple conveyance of new securities: The stock trade gives as a medium
to the simple dispersion of the securities by the methods for the rights issue to the current
investors and private situation

5. Its individuals give master speculation guidance and advising: The stock trade
furnishes its individuals with the master exhortation on interest in the securities and gives
directing on it.
6. It helps in capital arrangement process: The putting resources into the securities of the
stock trades expands the estimations of the securities in the event of an intense interest of
the security. This prompts a capital development of the organization.

7. It advances reserve funds propensity: The stock trade helps in the expanding in the
abundance of its financial specialists, accordingly giving a motivating force to different
speculators to set aside some cash to be put resources into the securities exchanges, along
these lines advancing the propensity for sparing among the general population.

The above expressed elements of the stock trades portray the stock trades as an
association that helps in the advancement of the idea of the sparing and interest in the
general public.

Other than the capacities that have been expressed over, the securities exchanges play out
an assortment of different capacities. Other significant elements of the stock trades
includes16

1. Venture of the investment funds of the general public: The stock trade basically pulls
in the reserve funds from the different segments of the general public. This gathered
reserve funds of the general public is later put by the organizations in the financing of the
different operational and different exercises of the organization.

2. Encouraging the development of the organization: The stock trade gives the
organization to fund-raise to back its operational exercises, so it helps in encouraging the
development of the organization
3. Redistribution of the riches: The stack trade helps in the redistribution of the riches as
when the organization issues profits or extra offers, the advantage of the expansion in the
organization's fortunes is made accessible to the people.

4. Expansion of organization possession: Since the value of the organization can be sold
through the stock trade, the stock trade gives a chance to the current investors to
differentiate the proprietorship.
5. Formation of speculation open door for little speculator: Since the securities are
accessible to the general population through the stock trade, it gives a chance to the little
financial specialists to make an interest in the business entities.

6. Raising capitals for government for venture reason: The administrations regularly
utilize the stock trade so as to raise the capital through the clearance of different bonds
for the motivations behind speculation.

From the above expressed elements of the stock trade demonstrates that the stock trades
plays out the significant capacity of the venture of the investment funds of the general
public and advancement of the development of the organization whose securities are
being exchanged.

Some Other elements of the stock trades include17:

1. Aides in the evaluating of the securities: The stock trade helps in the estimating of the
securities through the vehicle of the market powers of interest and supply as the
accurate calculation of the demand and supply can be made

2. Ensures safety of transaction: Since, all the intermediaries and other participants in
the stock exchange have to be essentially registered by the exchange, it ensures a
safety of the transactions

3. Provides speculation cult: The stock exchange provides a medium to the various
persons who conduct the trading in securities to earn profit from the difference
between the purchase and sale price of the securities.
 The above stated functions of the stock exchanges depict that the stock exchanges are the
organisations that help to provide a balance between the activities of investment in the
securities and gains made out of the speculative activities on the stock exchanges. This is
essentially due to the reason that the stock exchanges help to maintain the safety of the
transactions as well as helps the investors to make adequate gains out of the speculation
in the securities.

CHAPTER-3

GETTING LISTED ON STOCK EXCHANGE

3.1 MEANING AND CONCEPT OF LISTING

The term listing implies the affirmation of securities of any fused organization, focal and
state governments, semi government and other money related establishment/enterprises,
regions, power, lodging sheets and so forth to dealings on a recognised stock exchange 18. The
idea of posting that has been characterized above, might be of the accompanying types19:

1. Beginning posting: An organization whose securities are not recorded before on a

perceived stock trade, if wants of posting of securities, needs to pursue systems
relevant for introductory posting.
2. Posting of open issue of offers or potentially/debentures: An organization whose
shares are recorded on a perceived stock trade may issue shares and additionally
debentures to the general population for membership. In such cases, the organization,
under the posting understanding, needs to submit vital application to the stock trade
for the posting of its securities.
3. Posting of rights issue of offers or potentially debentures: the organizations whose
securities are as of now recorded may issue shares as well as debentures by the
method for 'rights' to the extracting investors. Under the posting understanding, such
organizations need to list shares as well as debentures designated by method for rights
to the investors with the stock trades.
4. Posting of reward issue of the offers: The organizations which issue extra offers by
the capitalisation of its stores, according to the posting understanding should enroll
 with the stock trade extra offers issued by presenting the important application
structure for authority citation of the extra offers so issued.
5. Posting of offers issued on amalgamation, mergers and so on.: The amalgamated
organization which issues offers to the investors of amalgamating organization needs
to get the offers recorded on the stock trades to empower recent investors of
amalgamating organization for managing in the offers of the amalgamating
organization.

6. Posting of offers by private position: Under the posting understanding, the recorded
organizations are obliged to get recorded the securities issued by them by private
situation to just a portion of their investors or even to people who are not the current
investors. Posting of offers emerging out of representative investment opportunities:
If a recorded organization issues its offers to its workers under the representative's
investment opportunities plot, such offers are required to be recorded as far as the
SEBI (representative investment opportunity plan and worker stock buy conspire)
rules, 1999 read with statement 24 of the posting understanding.
7. Posting of offers issued on change of credits/debentures: If a recorded organization
issues new value shares against transformation of the debentures, advances and so
forth., such offers are required to be recorded.
8. Posting of offers fundamental the safe receipts: If an organization issues the vault
receipts abroad against issue of new value shares, such offers are required to be
recorded, independent of whether the safe receipts are recorded or unlisted abroad. As
far as the outside money, convertible securities and normal offers (through safe
receipt component) conspire, 1993, as changed in 2005, even an unlisted organization
needs to list its offers on a perceived stock trade in India synchronous or before issue
of safe receipts.

As it is seen that, the posting of securities has been a system that has been broadened in the
ongoing period so as to suit the different new ideas that are emerging in the ongoing time
concerning the exchanging securities of an organization. This anyway has a further extent of
extension later on, with the expansion of new compliances concerning the issuing of new
securities.
3.2 PROCEDURE FOR GETTING LISTED IN EXCHANGE

Requirements regarding initial listing on a stock exchange:

A public limited company that desires to get its securities listed for the first time on any stock
exchange has to send in the listing application form duly filled in and signed with the
enclosures referred to in the said application should be sent to the stock exchange along with
the following20:

 listing agreement duly executed and stamped on a non-judicial stamp paper of a

requisite value
 Requisite listing (initial) fess as prescribed.

The securities contracts (regulation) rules, 1957 prescribes the documents and particulars to
be furnished by a public company while applying for listing its securities.

They are enumerated below21:

1. memorandum and articles of association and, in the case of a debenture issue, a

copy of the trust deed
2. copies of all prospectuses or statements in lieu of prospectus issued by the
company at any time

3. Copies of offers for sale and circulars for advertisements offering any securities
for subscription or sale during the last five years.

4. Copies of the balance sheets and audited accounts for the last five years, or in the
case of new companies, for such shorter period for which accounts have been
made up.
5. A statement showing:
 Dividends and cash bonuses, if any, paid during the last ten years (or such
shorter period as the company has been in existence, whether as a private
or a public company)
 Dividends or interest in arrears, if any
6. certified copies of agreements or other documents relating to arrangements with
or between:-
 vendors and/ or promoters
 underwriters and sub underwriters
  brokers and sub brokers

Other requirements for listing include22

7. certified copies of agreements with:-

 selling agents
 managing directors and technical directors.
 general managers, sales managers, manager or secretary.

8. Certifies duplicate of each letter, report, monetary record, valuation contract,

court request or other archive, some portion of which is recreated or alluded in
any outline, offer available to be purchased, round or commercial offering
securities for insider trading: if any insider whose participation in the midst of
latest 5 years.

9. An announcement containing specifics of the dates of, and gatherings to every

single material contract, understandings (counting understandings for specialized
counsel and coordinated effort), concessions and comparable different records
(aside from those went into in the customary course of business continued or
planned to be carried on by the organization) together with a short depiction of
the terms, topic and general nature of the archives.

10. A short history of the organization since its consolidation giving subtleties of the
exercises including any revamping, reproduction or amalgamation, changes in its
capital structure( approved, issued and bought in) and debenture borrowings,
assuming any

11. Specifics of the offers and debentures issued-

 For other than money, regardless of whether in entire or to some extent

 Including some hidden costs or rebate
 In compatibility of a choice
 12. . An announcement containing points of interest of any commission, financier,
rebate or other unique terms including a possibility for the issue of any sort of
securities conceded to any individual

13. Guaranteed duplicates of:

 Affirmation card or receipt of recording offer report with SEBI.
 Understandings, assuming any, with the mechanical fund organization,
modern credit and Investment Corporation and comparative bodies.

14. Points of interest of the offers relinquished.

15. A rundown of most elevated ten holders of each class or sorts of securities of the
organization as on the date of utilization alongside the specifics with regards to
the quantity of offers or debentures held by and the location of each such holder.

As I would see it, the materials that is required at the season of posting of the securities are
the ones that are fundamentally illustrative of the subtleties of the securities, for example, the
name of the organization and the reports identified with it and furthermore identifying with
the securities that are tried to be recorded. This along these lines helps in giving a total
clarification of the securities to the different gatherings intrigued through the medium of the
stock trade.

Conditions point of reference to posting: According to the securities contracts (guidelines)

rules, 195723 a state of "least open offer" of the securities to be recorded must be made. In any
event 10% of each class or sort of securities issued by an organization is required to be
offered to the general population for membership through ad in papers for a period at the very
least 2 days and that applications got in compatibility of such offer would be distributed
subject to the accompanying conditions:

 A base 20 lakh securities (barring reservations, firm assignment and advertiser's

commitment) to be offered to open.
 The span of the idea to the open for example the offer cost increased by the quantity
of securities offered to general society to be least of Rs. 100 crores.
  The issue to be made just through book building strategy with portion of 60% of the
issue size to the certified institutional financial specialists.

In the event that an organization does not satisfy the above conditions, it will offer at any rate
25% of each class or sort of securities to open for membership through notice in papers for a
period at the very least two days and that application got in compatibility to such offer were
assigned.
Where any piece of the securities looked to be recorded have been or are consented to be
taken up by following bodies, the all-out membership to the securities, regardless of whether
by at least one of such bodies, will not frame some portion of the 10% or 25% of the
securities, all things considered, to be offered to people in general :

 The focal government

 A state government
 Development or speculation organization of a state government
 Industrial improvement bank of India
 Life protection organization of India
 General protection organization of India and its backups

A perceived stock trade may loosen up any of the conditions with the past endorsement of
SEBI, in regard of an administration organization subject to such conditions as the SEBI may
issue every once in a while.
Where an organization can't conform to the prerequisites of standard 19(2), the stock trades
are not allowed to permit the posting of the securities. Such cases ought to be alluded to by
the stock trades for exception.
As I would like to think, the conditions that have been set out that must be consented to
respect to the posting of securities demonstrates that it is essentially to guarantee that a
specific bit is to be issued to the general population for membership. This has been essentially
finished with an aim to not enable the recorded organizations to have shares that are firmly
held.
As I would like to think, the prerequisites that are to be satisfied for verifying the posting of
the securities demonstrates that the offer that is tried to be recorded ought to be of a
significant size that satisfies the above expressed necessities24.

Essential necessities in verifying consent for crisp posting of securities :

As expressed before, the posting is obligatory when an open organization is planning to make
an open issue by outline of offers or debentures out of the blue. Coming up next are the major
requirements.

1. The outline issued by the organization must express the name of such perceived
stock trade to which the organization has made an application for consent for posting
of the offers or debentures.

2. The organization must make an application to each perceived stock trade on which
it needs to get the offers or debentures recorded, before the plan is issued.

3. The application ought to be made in the structure accessible with the stock trades.

4. The consent of each stock trade to which an application has been made for posting
must be gotten inside ten weeks from the date of the conclusion of the issue25.

5. In the event that the authorization has not been allowed inside ten weeks,
designation of offers or debentures will be void, other than the organization being
obligated to discount the application cash.

6. Regardless of whether any of the stock trades to which an application has been
made for consent does not give the authorization, the portion will be void. This was
held on account of Rashyashringa Jewellery Ltd. Versus Stock Exchange, Bombay
(1995) 19 CLA 203(SC). In term of the SEBI ICDR guidelines, plan VII, all means
for finishing of essential conventions for posting and initiation of exchanging at all
the stock trades where the securities are to be recorded are taken inside 7 working
long periods of conclusion of the premise of portion.

7. There may not be a positive reaction from each stock trade, to which an application
has been made; even non-transfer of the application or non-correspondence of choice
would add up to refusal to give permission26.
 8. The organization may make an intrigue against the refusal of a stock trade to allow
consent for listing27. The offer deceives the focal government. Be that as it may, the
power gave on the focal government has been assigned to the SEBI.

9. An intrigue ought to be set aside a few minutes limit stipulated in area 22 of the
act28 as a reminder of request and routed to the investigative expert, securities and
trades leading body of India.

10. The intrigue ought to be documented in copy, determining the grounds of advance
and setting out all the material points of interest identifying with the issue of
securities, the choice of the stock trade in regard of the application for posting and so
on and joined by duplicates of every significant archive, for example, the outline, the
application for posting, the explanations behind refusal and so on. what's more, other
pertinent correspondence traded between the organization and the stock exchange29.

Need of getting recorded on the local stock trade.

By the terms of circular(F. No. 14(2)/SE/85) dated 23/09/1985, issued by the service of
Finance, administration of India, all the recorded organizations were required to be recorded
on the territorial stock trades.
The purpose behind this strategy of obligatory posting at the provincial stock trades was to
tap the funds of local speculators. There was a need to support the business and the national
economy by activating the local capital.
Be that as it may, there was no supporting foundation. Without cutting edge methods for
exchanging like electronic exchanging, nonappearance of across the nation exchanging
terminals and so on the controller had no decision yet to turn out with the approach of
required posting at the local stock trade.
The Kar board of trustees on financial exchange changes had recommended for the expulsion
of the statement of the required posting on the provincial stock trade. Clause11.2 states that
there will not be any impulse for the current organizations to stay recorded on the territorial
stock trade.
Resulting to the above round, essential changes were done in SEBI (Disclosure and financial
specialist insurance) rules, 2000, Vide SEBI roundabout no. 11 dated fourteenth august,
2003(SEBI/CFD/DIL/DIP/Circular No. 11 August 14, 2003). Regarding the said changes, the
term 'provincial stock trade' was erased and a term 'assigned stock trade' was presented with
the end goal of the DIP rules.
Under the SEBI (issue of capital and revelation necessities) guidelines, 2009, the
organizations are given an adaptability to pick a stock trade as an assigned stock trade for a
specific issue made under these rules. The organization would have the opportunity to pick
some other stock trade as an assigned stock trade assigned stock trade for resulting issues. Be
that as it may, where the securities are recorded/proposed to be recorded at stock trades
having an across the nation exchanging terminal, at that point the assigned stock trade will be
fundamentally one of such stock exchanges30.

As I would like to think, the arrangement of posting of the securities of the recorded
organizations on the provincial stock trades alongside the stock trades having an across the
nation inclusion has been made to guarantee that the forthcoming financial specialists are not
just prevented an open door from claiming exchanging the securities because of them binding
an entrance to the terminals having an across the nation inclusion. This has been done as such
as to guarantee the most extreme exchanging happens in the securities as is conceivable.

Listing of equity shares with differential rights

The issue of value imparts to differential rights as to casting a ballot or profit or generally is
liable to segment 86 of the act31, read with the organizations (issue of offer capital with
differential casting a ballot rights) rules, 2001. The conditions for the issue of such offer as
indicated in the guidelines are the accompanying:

1. The organization has distributable benefits for the previous 3 budgetary years.

2. The organization has not defaulted in recording yearly records and yearly returns
for the former 3 money related years

3. The organization has not neglected to reimburse its stores or intrigue consequently
on due date or recover its debentures on due date or pay profit.

4. The articles of relationship of the organization approves the issue of offers with
differential casting a ballot rights.
 5. The organization has not been sentenced for any offense emerging under securities
and trades leading group of India act, 1992, Securities Contracts( Regulation) Act,
1956, Foreign trade the executives demonstration, 1999.

6. The organization has not defaulted in dispensing financial specialist's complaints.

The guarantor organization is required to get the endorsement of investors through
postal poll. The notice/informative explanation should state:

 The rate of casting a ballot rights which the value share capital with differential
casting a ballot rights will convey.
 The scale or in extent to which the casting a ballot privileges of such class or type or
offers will change.
 The organization will not change over its value capital with casting a ballot rights into
value share capital with differential casting a ballot rights and the offers with
differential casting a ballot rights and the offers with differential casting a ballot rights
into value share capital with casting a ballot rights.
 The offer capital with differential casting a ballot rights will not surpass 25% of the
all-out offer capital issued.
 That an individual from the organization holding any value share with differential
casting a ballot rights will be qualified for extra offers, right offers of a similar class.
 The holders of the value imparts to differential casting a ballot rights will appreciate
every single other ideal to which the holder is qualified for with the exception of ideal
to cast a ballot as prosecuted previously.

Posting understanding and the commitments under the posting understanding

Listing agreement is an understanding gone into between the backer and the stock trade
where the securities of the guarantor are recorded/expected to be recorded.
Under segment 21 of the act, where securities are recorded on an utilization of any individual
in any perceived stock trade, such individual will conform to the states of the posting
concurrence with the stock trade. Along these lines, under this arrangement, infringement of
the posting understanding is an offense.
Standard 19 of the said rules stipulates the prerequisites regarding the posting of securities on
a perceived stock trade that must be gone along by a recorded organization.
Compliances to be submitted to under the posting understanding [in understanding with the
posting understanding of the BSE restricted and the national stock trade of India limited.]. It
is connected in a reference section toward the finish of the task.

3.3 ADVANTAGES OF GETTING LISTED

The term 'listing' that has been clarified above is getting progressively well-known with the
death of the time. This is because of the accompanying points of interest that the posting has
on the organization and its financial specialists

To the organization: The posting of securities has the accompanying focal points to the joint
stock company32:

1. Increasing national and global significance: By the uprightness of getting

recorded on the stock trade, the name of the organization is flashed over the
national and worldwide media. This encourages the organization to pick up the
national and universal significance.

2. Simple obtainment of advance: The posting of the organization encourages it

in the simple acquirement of the credit as both-the rupee cash just as in the
remote money.

3. Activates assets from investors: The posting of an organization encourages it

to obtain the surplus cash accessible from the investors who put resources into
their securities. Along these lines, it assembles the assets from the investors.

4. Stays away from dread of a simple takeover: This is the last favourable
position of the demonstration of posting on the stock trade. The posting of the
securities guarantees that there is a wide dissemination of the securities among
the different investors. This stays away from the dread of a simple takeover of
the organization by some other individual or a gathering of people.
To the financial specialists: The posting of the securities of an organization offers different
sorts of focal points to the speculators of the organization also. They might be identified as
below:

1. Guarantees liquidity of speculation: The posting of the securities prompts the

office of the securities being effectively exchanged among the different
financial specialists. This guarantees the satisfactory liquidity of the securities
and guarantees that the specific financial specialist isn't screwed over thanks to
a security of an organization against his desire.

2. Discarding rights qualification: The corporate standards require that at the

season of the IPO, the organizations need to issue a rights issue for the current
investors. The stock trade in this way gives a simple gathering to the financial
specialists so as to practice the privilege of the rights in regard of the securities
held.

3. Simple obtainment of advance: The ownership of the recorded securities of an

organization helps in the simple acquisition of the advance. This is because of
the reality as the recorded securities are a fluid resource. The bank gives a
credit on simple terms on account of recorded securities held by an individual.

4. Simple evaluation of individual assessment obligation: The posting of the

securities on a stock trade guarantees that the salary got from the concerned
securities is effectively determined. This aides in the simple evaluation of the
individual assessment risk of the concerned speculator.

5. Straightforwardness of exchanges: In a stock trade, since there is a determinate

gathering through which the exchanging the securities is led, thusly, it
guarantees a straightforwardness in the exchanges of the stock trade.

6. Secures premiums of speculators: The posting of the organization on a stock

trade guarantees that the exchanges of the organization are made
straightforward. This aides in the assurance of the interests of the investors.
 7. Gives the money related data to speculators on quarterly premise: the
necessity of the stock trade for the recorded organizations gives that the
recorded organizations ought to uncover their monetary data on a quarterly
premise, so the financial specialists are made mindful of the execution of the
organization every now and then in a budgetary year.

8. Data in regards to takeovers are distributed: The posting of the securities on a

stock trade furnishes a discussion wherein the data with respect to the
amalgamation, mergers and the takeovers of the organizations can be
distributed.

As I would like to think, the posting of the securities of a business entity is helpful to both-the
organization whose securities they are just as the financial specialists who put resources into
the securities. This is because of the reason that the posting of the securities makes the
general population mindful about the accessibility of the securities and in the meantime
guarantees that the speculators don't stay stayed with the securities and can arrange them off
at their desire. It additionally guarantees that all the data concerning the organization that
would influence the choice of the investors are given sufficiently to them through the
component of the posting understanding.

3.4 MEANING AND CONCEPT OF DELISTING

The idea of delisting alludes to the demonstration of the evacuation of the securities that were
once recorded on a perceived stock trade from being exchanged on the stock trade. The
delisting of a business entity is advantageous to the organization because of the
accompanying reasons33.

1. The executives control: The delisting of the securities will prompt a decrease in the
exchanging the securities. This will achieve a more prominent control of the
administration which is dealing with the organization.
 2. Free basic leadership: Since by the prudence of delisting, the exchanging the security
diminishes, so the present administration is in a superior circumstance for settling on
autonomous choices as to the organization.

3. Lesser number of divulgences: A recorded organization needs to reveal the data with
respect to different viewpoints to the diverse invested individuals. By the organization
getting delisted implies that the organization has lesser number of divulgences to be
made.

4. Decreased cost: The consistence with the set down exposures that are to be
maintained on account of recorded organizations includes as an extra cost the
organization. So when the organization gets delisted, these compliances need not be
pursued.

5. Diminished administrative work: The recorded organization needs to do a ton of

documentations to be kept up as per the law. With the securities of an organization
getting delisted, the desk work gets diminished fundamentally.

6. Lesser number of compliances: The delisting of the organization from the stock trade
implies that the organization never again needs to keep the compliances of that it was
to pursue before. So the quantities of compliances to be kept are lesser.

As I would see it, the accessibility of the alternative with the business entities to get the are
joined alongside it.

Methods of delisting34: The securities of an organization might be delisted from the stock
trades securities delisted is points of interest to the organizations just as the investors as it
guarantees that an organization that isn't envious of exchanging of its securities can expel it.
It additionally conveys alongside it the different points of interest that by any of the
accompanying routes.

1. Deliberate delisting: Voluntary delisting implies the delisting of securities of a

body corporate by an advertiser or some other individual other than a stock trade.
Securities may wilfully be delisted from the bourses, as per the delisting
 guidelines issued by SEBI. As far as the SEBI ( delisting of value shares)
guidelines, 2008, deliberate delisting is subject bury alia to the accompanying
conditions.

Obtaining earlier endorsement of investors:

 Making an open declaration

 Offering a leave chance to the holders of the securities
 Applying the delisting trades and consenting to the extra conditions, assuming
any, as might be recommended by such trade.

An organization may delist value shares from at least one perceived stock trades while
keeping posting on any perceived stock trade having an across the nation exchanging
terminals, in which case no leave opportunity must be given to the investors. On the off
chance that an organization tries to delist its value shares from all perceived stock trades
having across the country exchanging terminals, it needs to give leave chance to every open
investor holding the value shares tried to be delisted.

On the off chance that leave opportunity isn't required, delisting method incorporates the
following:

1. Proposition to delist should be affirmed by a goals of the governing body of the

organization at its gathering.

2. An open notice of the proposed delisting should be given on no less than one
English national day by day with wide flow, one hindi national day by day with
wide dissemination and one local language paper of the districts where the
perceived stock trades concerned are found.

3. On a basic level endorsement should be acquired from the stock trades concerned.
Stock trades are required to discard an application for delisting inside a period not
surpassing 30 working days from the date of receipt of such application complete
in all regards.
 4. The reality of delisting should be revealed in the main yearly report of the
organization arranged in the wake of delisting.

In the event that leave opportunity isn't required, the accompanying extra customs should be
observed.

1. Proposition to delist should be endorsed by investors of the organization by

extraordinary goals went through postal ticket. The informative proclamation in
connection to such goals will contain every material actuality.

2. A last application should be made to the stock trades worried inside one year of going
of the uncommon goals. The application will be went with confirmation of having
given the leave opportunity as per the arrangements of the part IV of SEBI guidelines.

3. Instead of open notice, the organization needs to make open declaration of the leave
opportunity.

4. Exit opportunity: The procedure of leave opportunity includes the accompanying

activities:

 Floor value: Floor cost is the most reduced cost. Last cost to be resolved after
consummation of the entire procedure will be at a dimension equivalent to or higher
than the floor cost. Each leave open door will contain a story value, which will be the
normal of the week by week high and low of shutting costs of the value offers of the
organization amid the 26 weeks or 2 weeks going before the date on which the stock
trades were advised of the load up gathering in which the delisting proposition was
considered, whichever is higher, as cited on stock trade where the value offers of the
organization are most every now and again traded.
Floor cost if there should arise an occurrence of rarely exchanged securities: Shares
will be esteemed to be inconsistently exchanged if, on the stock trade, the annualized
exchanging turnover amid the first six date-book a long time preceding the month in
 which the stock trades were advised of the load up gathering in which the delisting
proposition was considered is under five percent of the recorded offers.

 Store in Escrow account: The advertiser will store in an escrow account, 100 percent
of the evaluated measure of thought determined based on the floor cost showed and
the quantity of offers exceptional with open investors.

The escrow account will comprise of :

1. Money saved with a booked business bank.

2. Bank ensure for the vendor financier.

A blend of the abovementioned.

The organization will, while opening the record, enable the vendor financier to utilize/work
the record for completing the exercises or satisfying the commitments as might be required
for the reason.

1. Open declaration: The advertisers of the organization will make an open

declaration in something like one English national every day with wide
dissemination, one Hindi national day by day with wide course and one
territorial language paper of the area where the stock trade is found. The open
declaration will contain all material data incorporating the one determined in
timetable I to the SEBI guidelines. It will determine a date, being a date not
later than 30 working days from the date of the open declaration.

2. Offering focuses, exchanging individuals: The base number of offering

focuses will be

 The four metropolitan focuses arranged at Mumbai, Delhi, Kolkata and Chennai.
 Such urban communities in the locale in which the enrolled office of the organization
is arranged, as are indicated by the stock trades.

All the offering focuses will have something like one electronically connected work station,
for making the procedure through an electronically connected straightforward office. The
advertiser will likewise delegate 'exchanging individuals' for setting offers on the on-line
electronic framework.

Financial specialists may approach exchanging individuals for setting offers on the on-line
electronic framework.

1. Offer: The date of the opening of the offer will not be later than 55 working
days from the date of the open declaration. The advertiser will dispatch the
letter of offer to open investors not later than 45 working days from the date of
open declaration, in order to contact them somewhere around 5 working days
before the opening of the offering time frame. The letter of structure will be
went with an offering structure. The idea to purchase will stay open for a base
time of 3 working days. The investors burning of profiting the leave
opportunity will store the offers offered with the exchanging individuals
preceding arrangement of requests. Then again they may check a vow for the
equivalent to the exchanging part. The exchanging part turn may put these
securities as edge with the trades/clearing partnerships. The investors may pull
back or modify offers upward not later than 1 day before the conclusion of the
offering time frame.

 Delisting in compatibility to mergers and amalgamations: Companies may likewise be

delisted from all the stock trades as per the reproductions, mergers and amalgamations
and so forth.

Regarding a round( SEBI/SMD/Policy/List/Cir-17/2003) issued by SEBI on 8/5/2003, any

plan/request proposed to be recorded under the watchful eye of any court or council under
sections 391, 394 and 101 of act,72

 Shall be recorded with the stock trade, for endorsement, no less than a month prior to
it is displayed to a court or a council
 Does not at all abuse, supersede or outline the arrangements of securities before it is
exhibited to a court or a council.

Further, the organization will reveal the pre and post course of action or amalgamation
(expected) capital structure and shareholding design in the logical articulation sent by it to the
investors under section 393 of or going with a proposed goals to be passed under segment
100 of the organizations demonstration.

 Delisting subsequent to solidification of property: Consolidation of possessions in an

organization by an individual responsible for the executives may have the impact of
the organization being delisted.

Combination of possessions, which may have the impact of organization being delisted :

 Delisting by method for buyback of securities: The buyback of securities, as allowed

under segments 77A of the organizations demonstration, 1956

Method: Under segment 77A of the act, the repurchase of securities might be out of

1. The free saves

2. The securities premium record

3. The returns of any offers or other indicated securities.

Limitations forced on the repurchase: No organization will buy its very own offers or other
determined securities unless

1. The repurchase is approved by the articles

2. An uncommon goals has been passed in the general gathering of the organization
approving the repurchase.

Special cases to the above standard:

1. The repurchase is under 10 percent of the absolute paid up value capital and free
saves of the organization.
 2. Such repurchase goals has been approved by the board by the methods for a goals
go at its gathering.

3. The repurchase is or under twenty five percent of the all out paid up capital and
free holds of the organization

4. Given that the repurchase of value partakes in any budgetary year will not surpass
twenty five percent

5. The proportion of the obligation owed by the organization isn't more than double
the capital and its free holds after such repurchase

6. Given that the focal government may recommend a higher proportion of the
obligation than the predefined under this provision for a class or classes of
organizations.

7. Every one of the offers or other determined securities for repurchase are
completely paid up.

8. The repurchase of the offers or other determined securities recorded on any

perceived stock trade is as per the guidelines made by the SEBI for this sake.

9. The repurchase in regard of offers or other indicated securities other than those
predetermined in provision (f) is as per the rules as might be recommended.

 Mandatory delisting by the stock trades: 'necessary delisting' signifies delisting of

value offers of an organization by a perceived stock trade under part 5 of the
guideline.

Procedure: The stock trade will pursue the beneath laid method for the mandatory delisting of
the securities. The technique will be completed subsequent to giving the stock trade a
sensible chance of being heard. The choice will be taken by a board comprised by the
perceived stock trade.

Prior to making a request for delisting, the perceived stock trade will give a notice in one
English national every day with wide flow and one local language paper of the area where the
perceived stock trade is situate, of the proposed delisting, giving a timeframe of at the very
least 15 working days from the notice, inside which the portrayals can be made to the trade
by the individual abused and such notice will likewise be shown on the site.

The above expressed system for the obligatory delisting of the securities is like the other
expressed strategies which has been fundamentally planned so as to guarantee that the
interests of the investors are not antagonistically influenced.

 Delisting by task of law: The organizations may likewise be delisted compulsorily by

task of law. It can occur by virtue of headings under BIFR.

As I would like to think, the demonstration of deliberate delisting of the securities is the one
that requires the greatest compliances to be satisfied and henceforth is the most troublesome
strategy to be embraced. This is essentially because of the reason that dissimilar to on account
of different circumstances, there is no impulse of the concerned organization to get delisted.
Along these lines, the organization needs to pursue a methodology having more prominent
compliances. This has been set down to guarantee that the interests of any gathering included
are not unfavourably influenced.

Conditions under which delisting is preposterous: The posting or delisting are business
choices and there ought not be any bar on the delisting of the securities, especially in a
market driven economy.

There have been sure conditions that have been recommended under which the delisting has
been explicitly denied under the SEBI guidelines. These might be listed as below35:

 Least posting period: The securities ought to have been recorded for a base time of
three years on any perceived stock trade. Until the securities stay recorded for the
 base time frame endorsed, the equivalent can't be delisted. The strategy of least
posting period has been acquainted with give a type of conviction and to give the
speculators a sensibly reasonable timeframe to execute in the securities, before they
could be delisted.

 Extraordinary convertible instruments: An organization which has a convertible

instrument remarkable will not be allowed t delist its securities till the activity of the
change choices. This is on the grounds that, if such instruments are changed over in
the wake of delisting of value shares, the choices would risk holding illiquid venture.

 Precluded methods for delisting: The guidelines disallow the delisting of securities
according to a repurchase and special designation of securities.

 Least number of offers to be gained: as far as guideline 17 of the SEBI guidelines,

leave offer for delisting will be regarded to be effective if post offer, the shareholding
of the advertisers taken together with the offers acknowledged through qualified
offers at the last offer value comes to the higher of:

1. 90% of the complete issued offers of that class barring the offers against which
safe receipts have been issued.

2. The total level of the pre offer advertiser shareholding and half of the offer size.

 Extra conditions as might be endorsed: Any other extra conditions as might be

indicated by the stock trades worried from where the securities are looked to be
delisted, will likewise must be followed.

The arrangement of the conditions under which delisting of securities is beyond the
realm of imagination has been set down so as to guarantee that the strategy of posting
and resulting delisting isn't completed at the impulses and likes of the organization
concerned. This has been finished with an essential goal of the security of the interests of
the investors
 CHAPTER-4
REGULATION OVER THE INTERMEDIARIES BY THE STOCK EXCHANGE

4.1 Concept of Intermediary in Stock Market

The idea of middle person has been since long common in the securities showcase in India.
The idea of go-between in the regular speech has been to mean any individual or specialist
that encourages the working of any exchange. The go-between had been considered as a
notable individual in the demonstration of assistance of the exchanging the securities in the
securities showcase.

The securities and trades leading group of India had out of the blue set out the formal
meaning of the mediator in the SEBI (go-between) guidelines, 200836. It has characterized
delegate as " an individual referenced in clauses(b) and (ba) of area 11(2) and segment 12(1),
(1A) of the SEBI demonstration, 1992 and incorporates a benefit the executives organization
in connection to the securities and trades leading body of India( common store) guidelines,
1996, a clearing individual from a clearing company or clearing house and an exchanging
individual from a subordinate fragment of a stock trade yet does exclude remote institutional
financial specialist, outside funding speculator, shared reserve, aggregate speculation plan
and investment support" .

At first the mediators were required for the reason that the stock trades were not very much
created with the speculators knowing the strategy that should have been pursued and the
financial specialists not monitoring the imminent purchasers and merchants all things
considered. With the death of the time, the nearness of the delegates in the market turned into
a training, with the securities and trades leading body of India perceiving the nearness and
prerequisite of the middle people and in this way shaped the important guidelines required for
their administration.

The above expressed idea of a delegate signifies that the term go-between has been set down
to mean a wide idea that has been expressed yet unmistakably expresses that the FII's have
not been incorporated inside the idea of the go-between.

In the ongoing time, the idea of the go-between has developed monstrously as there has been
the nearness of different advancements in the securities advertise that has prompted the
improvement of it from a straightforward market for the exchanging securities to a perplexing
business sector framework in which the exchanging takes puts through a predetermined
technique. Likewise, the presentation of the new ideas in the exchanging has driven innately
prompted the acquaintance of the essential middle people with encourage the exchanging.

As in my opinion , the go-betweens that have been presented now of time are the ones that
are important to do the exchanges right now, however with the development of the securities
advertise in the nation, the extent of the middle people that are required will undoubtedly
increment. Along these lines, later on, the idea of middle person will grow to represent the
different sorts of intermediates relying upon their prerequisite. Underneath talked about is the
need and necessity of the mediator in the securities showcase.

4.2 NEED OF INTERMEDIARY IN THE STOCK MARKET

The middle people assume a significant job in the conduction of the business in the financial
exchanges at the different dimensions. They are the ones that are instrumental in conduction
of the exchange the securities of the organizations. The need of the go-betweens in the
securities exchanges is because of the accompanying reasons

1. Accessibility of permit to lead exchange: This is the main purpose for the need of
delegates in the stock trade. In the stock trade, certain classifications of people have
been assigned to do the different sorts of exercises with respect to the direct of
exchange. They have been in like manner been allowed the permit to complete
particular kinds of exercises. After the authorization of the guidelines, no people
other than those authorized, are permitted to complete the concerned class of
exercises.

2. Prepared accessibility of skill: This is the following explanation for the emerging
of the need of the association of the different middle people in the financial
exchange. The mediators, being enough prepared to lead the exercises have the
aptitude to direct the concerned class of exercises that isn't effectively accessible
with the financial specialists.

3. Accessibility of contact with the imminent gatherings: This is the following and
most significant purpose for the need of delegates to lead the exchange the stock
trades. The middle people in the financial exchanges, because of them being in the
concerned limit, have the accessibility of the contact with the different gatherings
that are associated with the conduction of the exchange between the gatherings. This
accessibility of contact with the different gatherings in included encourages smooth
exchanging of the securities.
 4. Accessibility of system with conduction of exchange: The last purpose for the
need of go-between to lead the exchanging securities is the accessibility of good
system offices with them. The different middle people have a decent system with the
different gatherings included that helps in encouraging the conduction of the
exchanging the different securities.

From the above expressed reasons, it very well may be plainly derived that in the normal
speech, the go-betweens are said to be the class of people who encourage the conduction of a
specific exchange, however on account of exchanging the securities, the go-betweens are the
ones that can't be apportioned away with, for the conduction of the exchanging securities of
the financial exchanges. This is because of the above expressed reasons that are available that
make the nearness of the securities exchange delegates as basic. The nearness of a middle
person has been considered, since the days of yore to be a fundamental piece of the exchange
of products or administrations in the nation. the above expressed reasons plainly portray the
significance of a delegate in the exchanging of any product or administration.

With the progressing of exchange and it getting to be globalized, the need of go-between will
undoubtedly increment as the limits inside which the exchange would be directed will
increment, accordingly expanding the need of the middle person so as to encourage the
conduction of the exchange.

4.3 WHO ARE THE INTERMEDIARIES

The idea of delegates that has been clarified above might be partitioned into the
accompanying kinds dependent on the job that they play in securities advertise

A. Mediators in the Primary market: The go-betweens that are associated with the
essential market of securities might be specified as below37:

1. Vendor brokers: " Any individual who is occupied with the matter of issue the board
either by making plans in regards to selling, purchasing or buying in to securities, or
going about as administrator, co-supervisor, expert, counsellor or rendering as
corporate warning administration in connection to such issue the executives of issue
of capital" is known as a dealer banker 38. A dealer broker can likewise go about as a
portfolio administrator or a guarantor to an issue. To be a vendor broker, an individual
 ought to fulfil the capital ampleness prerequisite of Rs. 5 crore at the season of
enrolment and keep up it amid the money of enlistment. The vendor financiers can't
connect with themselves in store based exercises and all things considered non-
banking account organizations can't go about as trader brokers.

2. Financiers: A guarantor is an individual who is occupied with the matter of endorsing

of an issue of securities of a body corporate.80*-The term 'guaranteeing' is a consent
to buy in to the securities of a body corporate in case of the speculators not buying in
to the offered securities. The guarantors ought to be enrolled with the SEBI. Shipper
financiers and stock intermediaries can likewise go about as a guarantor to the issue
without having a different enrolment as a financier. The financier must have a base
total assets of Rs. 20 lakh at the season of enlistment and keep up it amid the cash of
the enrolment.

3. Offer exchange operator: The offer exchange specialist means

 Any individual, who for the benefit of anyone corporate, keeps up the record of the
holders of securities issued by such body corporate and manages all issues associated
with the exchange and reclamation of its securities.
 An office or division, by whatever name called, of a body corporate, playing out the
exercises alluded to in sub proviso (I) if whenever, the all-out number of holders of its
securities crosses 1 lakh.

Components to be considered: The board will take into the accompanying elements while
considering the application for registration.:

1. Has the vital foundation like sufficient office space, types of gear and labour to viably
release his exercises.
2. Has past involvement in these exercises.
3. Or then again any individual legitimately or by implication associated with him has
not been conceded enrolment by the board under this demonstration.
4. Satisfies the capital sufficiency prerequisite under the demonstration.
5. Is exposed to any disciplinary continuing under the demonstration.
 6. Of any of its chief, accomplice or primary officer is or has whenever been sentenced
for any offense including moral turpitude.
7. Is a fit and appropriate individual

a. Debenture trustees: 'Debenture trustee' signifies a trustee of a trust deed for

verifying any issue of debentures of a body corporate.

Conditions for enlistment: Any enrolment conceded will be liable to the accompanying
conditions :

a. Where debenture trustee proposes to change its status or constitution, it will get an
earlier endorsement of the board for proceeding to go about in that capacity after the
change.

b. It will pay the expenses for enlistment or reestablishment, all things considered, in
the way gave in these guidelines.

c. It will make satisfactory strides for redressal of the complaints of the speculators
inside one month of the date of receipt of the grievance and keep the board educated
about the number, nature and different points of interest of the grumbling got and the
way in which these protests have been reviewed.

d. It will keep up capital ampleness necessities indicated in guideline 7A consistently

amid the time of declaration or restoration thereof

 It will submit to the guidelines made under the demonstration in regard f the exercises
carried on by it as a debenture trustee.
 Brokers to an issue: Banker to an issue implies a planned bank continuing all or any
of the accompanying activities:
a. Acknowledgment of utilization and application monies
b. Acknowledgment of utilization or call monies
c. Discount of utilization monies
d. Instalment of profit or intrigue warrants
 B. Intermediaries in the Secondary market

1. Essential vendors: These are the market players for government securities advertise
tasks and are directed by the Reserve bank of India. The essential vendors can be

a. The organizations joined under the organizations demonstration, 1956 and

connected overwhelmingly in the securities business, especially, government
securities showcase.

b. Auxiliaries of business banks and money related foundations devoted

overwhelmingly to the securities business, especially, the administration securities
advertise .The significant essential sellers incorporate the rebate and account place
of India ltd., securities exchanging partnership of India, blessings securities
exchanging enterprise, PNB gilts ltd., SBI gilts ltd., ICICI securities ltd.,

The essential sellers are upheld by the satellite vendors everywhere throughout the nation to
help in more extensive dispersion of the administration securities. The essential sellers ought
to have a base net reserve of Rs. 500 million and ought to keep up the capital ampleness
benchmarks as endorsed by the hold bank of India.

2. Stock handles: A stock is an individual from a perceived stock trade and is

occupied with purchasing, selling and managing in securities.98 A stock
specialist can bargain in the securities simply in the wake of getting enrolled
with the SEBI. A stock agent can work as an ownership firm, including
fundamental least capital and extra volume related capital. Stock
intermediaries are likewise qualified to go about as financiers without getting
a different enlistment as a guarantor. He might delegate sub brokers.

3. Sub Broker: A sub dealer implies any individual not being an individual from
the stock trade who follows up in the interest of a stock representative as a
specialist or generally for helping the financial specialists in purchasing,
selling or managing in securities through such stock intermediaries.
 4. Portfolio administrators: 'portfolio chief' signifies any individual who as per an
agreement or course of action with a customer, prompts or coordinates or
attempts for the benefit of the customer (regardless of whether as an optional
portfolio supervisor or something else) the administration or organization of
an arrangement of securities or the assets of a customer, by and large.

5. Speculation guide: A venture counsellor is the individual or a gathering of

people who prompt the financial specialists concerning where should they
park their assets dependent on their necessities and prerequisites.

6. Caretaker of securities: 'Overseer of securities' methods any individual who

continues or proposes to carry on the matter of giving custodial services"1

System and allow of authentication: under the guidelines, coming up next is the technique for
the giving of endorsement :

a. in the wake of considering the application sent to it, if the board feels that the
individual is qualified to be conceded a permit, it will send an implication of the
equivalent

b. On receipt of implication from the board, the candidate will pay the enrollment
charges to the board.

c. The board will at that point concede a declaration in structure B to the candidate on
the receipt of the enlistment charge.

7. Remote institutional financial specialists: Foreign institutional speculator

implies " an organization set up or joined outside India which proposes to
make interest in India in securities." these have been as of late allowed to put
resources into the securities exchanges in India accordingly furnishing India
with a chance to incorporate in the worldwide market.

8. Enlistment centres to issue: Registrars to an issue signifies "the individual

named by a body corporate or any individual or gathering of people to carry
 on the accompanying exercises on its or his or their behalf. “the recorders to
an issue are a significant piece of the securities advertise in the nation. the set
of accepted rules alongside the obligations and commitments of the enlistment
centres too an issue are represented by the SEBI guidelines. These have been
made as compulsory requisites and not a obligatory requirement in the respect
to enlistment centres to the issue.

4.4 NEED OF THE REGULATION OVER THE INTERMEDIARIES

There is a need to manage the working of the go-betweens in the securities exchanges in the
present period. In the ongoing period, because of the happening of the different tricks, for
example, the Harshad Mehta versus SEBI and the Ketan Parikh versus SEBI trick, an
expanded need was felt to direct the working. The need to direct it has emerged in the
ongoing time because of the accompanying reasons :

1. So as to get consistency practice: This is the main purpose for the emerging of
the need of guideline of the delegates in a financial exchange. The best possible
guideline of the working of the delegates guarantees that there is consistency in
the rehearsing of the mediators. This is finished remembering the assurance of
the interests of the different gatherings.

2. To get a more prominent trust the speculators: This is another reason credited
towards the emerging of a need to control the working of the middle people. An
appropriate guideline of the acts of the securities market will fabricate a more
noteworthy dimension of trust in the different gatherings with respect to the
securities advertise.
3. To make a climate for speculation: This is the following reason ascribed towards
the requirement for the guideline of the stock trades in the nation. A more
noteworthy guideline of the securities showcase in the nation will make an
environment for venture wherein substantial number of people would approach
and put their surplus cash in the securities advertise.

4. To build the dimensions of venture: This is underlined explanation for the more
noteworthy guideline of the securities advertise. The procedure of aa more
 prominent guideline of the securities showcase is being done with the underlined
goal of the expansion in the dimensions of interest in the nation. A move that is
being gone for expanding the dimensions of monetary development.

CHAPTER-5

ROLE OF SEBI IN STOCK EXCHANGE

5.1 PURPOSE OF TH ESTABLISHMENT OF SEBI

The inception of securities market can be followed back to long term of time. the securities in
India was at first settled as helpful society in which the exchanging of the securities was led
by the individuals on a shared premise. When Securities Contract (Regulation) Act, 1956 was
established the stock exchanges were corporatized and demutualised. The stock trades
proceeded on a before framework for a genuinely significant lot of time. the exchanging now
of time was led in an exchanging ring framework. with the presentation of the new monetary
approach in the year 1991 had made ready for the foundation of new enterprises in the nation.

This all the while prompted the multi crease development in the exchanging securities in the
market in the nation. this abrupt remarkable development in the securities made an issue as
the framework that was winning was not prepared to deal with the heap of exchanging that
was made. likewise more noteworthy measure of exchange implied that there were
proportionately equivalent number.

5.2 POWERS SEBI

The SEBI has been built up as the apex body to control the working of stock trade in the
nation by the ethicalness of being set up as the summit body for administration. it has been
vested wide assortment of forces, both under the securities contract(regulation) Act 1956 just
as the securities trade leading body of India Act, 1992 that has set up as a statutory body to
control the working of the stock trade in the nation.

Forces as to directing the stock trade: The act124 has given an assortment of forces on the
SEBI under the demonstration. They might be identified as pursues :

1. managing the business in stock trades and some other securities advertise: This is the
essential capacity for which the stock trades have been made for. The SEBI has been
principally made to direct the working of the stock trades and different securities
advertise in the nation.
2. enrolling and directing the working of stock specialists, sub dealers, share exchange
operators, investors to an issue, trustees of trust deeds, enlistment centers to an issue,
vendors brokers, financiers, portfolio directors, speculation counsels and such
different mediators who might be related with securities advertise in any way
 3. Enlisting and managing the working of safes, members, caretakers of securities,
outside institutional speculators, FICO score offices and such different middle people
as the board may, by notice indicate in such manner.

4. Enlisting and managing the working of funding assets and aggregate venture plans,
including common assets

5. Advancing and managing self-administrative associations

6. Disallowing false and uncalled for exchange works on identifying with the securities
advertise.

7. Advancing speculator's instruction and preparing of go-betweens of securities

advertise.

8. Denying insider exchanging securities

9. Controlling significant securing of offers and take-over of companies.

10. Calling for data from, undertaking assessment, directing request and reviews of the
stock trades, common assets, different people related with the securities advertise go-
betweens and self-administrative associations in the securities showcase

A portion of different powers that the Securities and trades leading body of India might be
counted as below:
 11. Calling for data and record from any bank or some other expert or board or company
built up or established by or under any focal, state or common act in regard of any
exchange in securities which is under scrutiny or request by the board.

12. Performing such different capacities and practicing such powers under the
arrangements of the Securities Contracts( Regulation) Act, 1956, as might be
appointed to it by the focal government.

13. Requiring such different expenses or different charges for doing the reasons for this
segment.

14. Directing examination for the above purposes

15. Calling from or outfitting to any such organizations, as might be indicated by the
board such data as might be viewed as fundamental by it for the proficient release of
its capacities.

16. Performing such different capacities as might be recommended.

The above demonstrates that the SEBI has been consulted with a wide scope of forces going
from the enrolment and guideline of the working of the different delegates required to playing
out the capacities so as to direct the different exchanges in the securities advertise. The
intrigue might be, anyway favoured against the request of SEBI under the watchful eye of the
concerned court of an appropriate ward.

After leading a request, if the board feels that the premiums of the that the premiums of the
financial specialists are antagonistically influenced, take any of the accompanying actions:

1. Suspend the exchanging of any security in a perceived stock trade.

2. Limit people from getting to the securities advertise and preclude any individual related
with the securities market to purchase, sell or arrangement in securities.

3. Suspend any office carrier of any stock trade or self-administrative association from
holding such position.

4. Seize and hold the returns or securities in regard of any exchange which is under scrutiny

5. Append, in the wake of going of a request on an application made for endorsement, by a

top of the line legal justice having locale, for a period not surpassing one month, at least one
financial balances of any go-between

6. Direct any delegate or some other individual related with the securities advertise in any
way not to arrange off or distance an advantage framing some portion of any exchange which
is under scrutiny.

In this manner, from the abovementioned, it tends to be construed that the SEBI has been
endowed with a wide assortment of forces so as to direct the working of the stock trades in
the limit of being the controller of the financial exchanges in the nation.

Powers under the Securities Contracts (Regulation) Act, 1956: The Securities
Contracts( Regulation) Act, 1956, that has laid down for the establishment of the stock
exchanges has established the SEBI as an organisation with the power to regulate the stock
exchange. The various powers are as follows:

1. Corporatisation and demutualisation of the stock exchanges: Under the provisions of

the securities contracts( regulation) act, 1956, SEBI shall carry out the corporatisation
and demutualisation of the stock markets in the country according to the provisions of
the act127.this shall be carried out in the manner as provided under the act
2. To call for the periodical or direct inquiries to be made: U/S 6 of the act, every
recognised stock exchange shall furnish to the SEBI such periodical returns relating of
its affairs as may be prescribed.

3. power to amend the bye laws of recognised stock exchanges: U/S 10 of the act130,
the SEBI, either on its own motion or on a request in writing from the recognised
stock exchange, amend any bye laws made by the stock exchange.

4. Power to issue directions: U/S 12A of the act131, if the SEBI is satisfied that it is
necessary
a. in the interest of financial specialist or systematic advancement of securities
market.

b. to avert the undertakings of any perceived stock trade or clearing enterprise, or

such other organization or individual, giving exchanging or clearing or settlement
office in regard of securities, being directed in a way negative to the premiums of
financial specialists or securities advertise

c. to secure the best possible administration of any such stock trade or clearing
organization or office or individual, alluded to in proviso (b).

It may issue such directions

1. To any stock trade or clearing partnership or organization or individual alluded to

in statement (b) or any individual or class of people related with the securities
advertise

2. To any organization whose securities are listed or proposed to be listed in a

recognised stock exchange . As in the best interests of investors in securities and
the securities market.
 5. Power to approve additional trading area for stock exchange: U/S 13A of the act132,
a stock exchange may establish an additional trading floor with the prior approval of
the SEBI in accordance with the terms and conditions laid by the said board.

6. Power to grant license to dealers in securities in certain areas: u/s 177, no person
shall carry on or purport to carry on, whether on his own behalf or on behalf of any
other person, the business of dealing in securities in any state or area to which section
13134 has not been declared to apply and to which the central government may, by
notification in the official gazette, declare this section to apply, except under the
authority of SEBI.

7. Imposition of penalties for the contravention of the provisions of the act: The SEBI
has the power to impose penalty for the acts that have been declared to be punishable
under the act135.

8. Power to impose regulations: U/S 31 , the SEBI is empowered to make regulations.

In particular, these regulations may provide for any of the following matters, namely:

 The manner, in which at least fifty one per cent of equity share capital of a recognised
stock exchange is held within twelve months from the date of publication of the order
under section 4B(7), by the public other than the shareholders having trading rights
under section 4B(8).

 The eligibility criteria and other requirements under section 17A.

The securities contracts (regulation) act, 1956, that has led to the creation of the stock
exchanges has, at the same time conferred wide sweeping powers to the SEBI under the act.
The powers of the SEBI range from the granting of the recognition to the concerned stock
exchanges to regulating the functioning of the stock exchanges. Each guideline made under
this demonstration will be laid, when might be after it is made, before each place of
parliament, while it is in session for an absolute time of 30 days which might be contained in
1 session or in at least 2 progressive sessions, and if, before the expiry of the session quickly
following the session or the progressive sessions aforementioned, the two houses concur that
the guideline ought not be made, the guideline will from that point have impact just in such
adjusted structure or be of no impact, all things considered, along these lines,
notwithstanding, that any such change or invalidation will be without partiality to the
legitimacy of anything recently done under that guideline.

5.3 ROLE OF SEBI IN REGULATING STOCK EXCHANGE

The SEBI assumes an imperative job in the demonstration of guideline of the stock trades in
the nation. Since it has been set up as the pinnacle assemblage of administration of the stock
trades in the nation. In the limit of being the peak group of administration, the SEBI assumes
a significant job in the administering of the stock trades. The vital capacities that the SEBI
performs so as to manage the working of the stock trades have been laid in the SEBI
demonstration, 1992137. They might be counted as underneath

1. Guideline of organizations of the securities advertise: This is the essential capacity

that the SEBI performs in the limit of being the peak group of administration in the
stock trade. The SEBI has been depended with the capacity of the guideline of the
matter of the securities advertise that that happens in the region of India to which this
demonstration applies.

2. Enrolling and controlling the working of mediators: This is the following significant
capacity that the SEBI performs. So as to direct the working of the securities advertise
in the nation, the people who wish to go about as middle people must be basically
enrolled in the way as has been given by the SEBI. No individual who has not been
enrolled with the SEBI is allowed to go about as a middle person.

3. Denying the use of fake practices: This is the following significant capacity of the
SEBI. The SEBI has been made with the fundamental reason for the guideline of the
working of the securities advertise. This wide capacity of the SEBi incorporates the
 systems that have been embraced so as to preclude the use of the fake practices in the
securities markets.

4. Burden of punishments in instances of infringement: This is another significant

capacity of the SEBI. The SEBI has pronounced various acts done to be culpable
under the resolution. These have been referenced under the areas 15A to 15HB of the
act.138 These might be specified as beneath

a. Inability to outfit data, return: Any individual who is required under this
demonstration to outfit data or keep up records and neglects to do as such
will be rebuffed with a fine of up to Rs. 1 lakh for each day when the
disappointment proceeds or Rs. 1 crore, whichever is less.139

b. Failure by any person to enter into agreements with the clients: If any
person, who is required under this act or any bye laws of a recognised
stock trade, to enter into an contract with his client, fails to enter into such
an agreement, be liable to a penalty of Rs. 1 lakh per day during the
continuance of the failure or Rs. 1 crore, whichever is less.140

c. Failure to review financial specialist complaints: If any broker or sub

broker or a company whose securities are listed or proposed to be listed on
a stock exchange fails to redress the customer’s grievances within the time
stipulated, shall be liable to a penalty of R 1 lakh per day during the
continuance of the offense or Rs. 1 crore, whichever is less.

d. Making certain defaults in mutual funds: If any person, who is

 Required under this demonstration or any principles or guidelines made there under to
acquire an endorsement of enlistment from the board for supporting or continuing any
aggregate venture plot, including shared assets, patrons or continues any aggregate
speculation conspire, including common assets, without getting such testament of
enrolment, will be at risk to pay a punishment of Rs. 1 lakh for every day amid which
he backers or continues any aggregate venture conspire including shared assets or Rs.
1 crores, whichever is less.

 Registered with the board as an aggregate venture plot, including common assets, for
supporting or continuing any speculation conspire, neglects to consent to the terms
and states of authentication of enlistment, will be at risk to pay a punishment of Rs. 1
lakh for each day amid which such disappointment proceeds or Rs. 1 crore, whichever
is less.

e. Failure in watching standards and guidelines set up by an advantage the

executives organization: Where any benefit the executives organization of
a common reserve enlisted under this demonstration neglects to consent to
any of the rules accommodating limitations on the exercises of the benefit
the executives organizations, such resource the executives organization
will be at risk to pay a fine of rupees one lakh for every day amid which
such disappointment proceeds or rupees one crore, whichever is less.

f. Default by the stock merchant: If any individual, who is enlisted as a stock

broker

 Neglects to issue contract notes in the structure and way indicated by the stock trade
of which such intermediary is a part, he will be obligated to a punishment not
surpassing multiple times the sum for which the agreement note was required to be
issued by that dealer.

 Neglects to convey any security or neglects to make instalment of the sum because of
the speculator in the way inside the period indicated in the guidelines, he will be at
 risk to a punishment of Rs. 1 lakh for every day amid which such disappointment
proceeds or Rs. 1 crore, whichever is less

 Charges a measure of financier which is in overabundance of the business indicated in

the guidelines, he will be at risk to a punishment of Rs. 1 lakh or multiple times the
measure of business charged in overabundance of the predefined financier, whichever
is higher

g. Insider exchanging: If any insider who,

 securities of a body corporate recorded on any stock trade based on any unpublished
value delicate data.

 Imparts any unpublished value touchy data to any individual, with or without his
solicitation for such data aside from as required in the standard course of business or
under any law

 Insight, or obtains for some other individual to bargain in any securities of anyone
corporate based on unpublished value delicate data

 Will be at risk to a punishment of Rs. 25 crores or multiple times the benefits made
out of insider exchanging, whichever is higher.

h. Non revelation of obtaining of offers and take overs: If any individual,

who is required under this demonstration or any standards or guidelines
made there under, neglects to-

 Reveal the total of his offer holding in the body corporate before he gains any offers
of that body corporate.

 Makes an open declaration to obtain shares at any rate cost.

 Makes an open idea by sending letter of offer to the investors of the concerned
organization.
  Make instalment of thought to the investors who sold their offers according precisely
of offer.

 He will be subject to a punishment of Rs. 25 crores or multiple times the measure of

benefits made out of such disappointment, whichever is higher

i. Deceitful and out of line exchange rehearses: If any individual enjoys fake
or out of line exchange works on identifying with securities, he will be at
risk to a punishment of Rs. 25 crores or multiple times the benefits made
out of such practices, whichever is higher.

j. Contradiction of guidelines where no different punishment has been given:

however neglects to conform to any arrangement of the demonstration, the
principles or the guidelines made or headings issued by the board there
under for which no different punishment has been given, will be subject to
a punishment which may reach out to Rs. 1 crore.

k. Foundation of securities redrafting court to mediate the question: In

request to successfully lead the productive exchanging of the securities,
there must be basically present, a system for the settling of the debate or
complaints. In the compatibility of the above expressed reason, the
securities investigative court has been established.

Composition of the court: A securities redrafting council will comprise of a managing officer
and two different individuals, to be selected, by warning, by the focal government.

Qulalifications: An individual will not be met all requirements for arrangement as a directing
officer of a securities re-appraising council except if he is a sitting or resigned judge of the
Supreme Court or a sitting or resigned boss equity of a high court.
The managing officer of the Securities Appellate court will be designated by the focal
government in counsel with the central equity of India or his nominee150.

Tenure: The managing officer and each officer individual from a securities re-appraising
court will hold the workplace for a term of five years and will be qualified for a re-election.
The managing officer can remain in office until he achieves the age of 68 years and for
different individuals it is 62 years.
 Chapter-6

Judicial response to the powers of a stock exchange

6.1 Segregation of ownership, management, trading

Court’s response Initially, the stock exchanges were established as a cooperative society
where the trading of the securities of the various listed companies was conducted by the
members on a mutual basis. The passing of the securities contracts (regulation) act, 1956 had
reformed the securities market. This was done through the corporatisation and
demutualisation of the stock exchanges. With this, there was a separation made in the
ownership and management of the stock exchanges. The stock exchanges came to be now
managed by the professional experts rather than by the owners. This change in the pattern of
the ownership had now shifted the objective of the stock exchange which was earlier to
conduct the trading of the securities on the mutual basis to conduction of the trading of
securities with an object to maximize the profit earned. The court has recognised that the
stock markets today are increasing tilted towards the financial aspect and have recognised
that the stock exchange may be construed as an independent company that works with an aim
to maximize the profits.

6.2 Powers to make bye laws by stock exchanges

The stock trades that have been built up by the securities contracts (guideline) act, 1956154,
has been allowed a type of a self-rule to settle on the issues that are identified with their
administration and working of the stock trade . The stock trades have been conceded a
constrained independence with the endorsement of the securities and trades leading group of
India, on account of Binay Boona versus BSE, it was held that the stock trades have the
ability to make the laws for overseeing its working. it might make laws as to the
accompanying

1. The opening and shutting of business sectors and the guideline of the long periods of
exchange.

2. A clearing house for the periodical settlement of agreements and contrasts there under,
the conveyance of and installment for securities, the passing on of conveyance orders and
the guideline and support of such clearing house.
3. The accommodation to the securities and trades leading group of India, by the clearing
house when it might be after every periodical settlement of all or any of the
accompanying points of interest as the SEBI may now and again, require, in particular

a. The all out number of every classification of security persisted starting with one
settlement period then onto the next.

b. The complete number of every class of security, contracts in regard of which have been
squared up over the span of every settlement period.

c. The all out number of every classification of security really conveyed at each clearing.
4. The distribution by the clearing place of all or any of the points of interest submitted to
the Securities and Exchanges leading body of India under provision (c) subject to the
course, assuming any, issued by the Securities and Exchanges leading group of India for
this benefit.

5. The guideline or restriction of clear exchanges

6. The number and classes of agreements in regard of which settlements will be made or
contrasts paid through the clearing house.

7. The guideline or disallowance of budlas or continue offices.

8. The fixing, changing or deferring of days for settlements.

9. The assurance and announcement of market rates, including the opening, shutting, most
astounding and the least rates for securities.

10. The terms, conditions and episodes or contracts, including the remedy of edge
prerequisites, assuming any, and conditions relating thereto, and the types of agreements
recorded as a hard copy.
11. The guideline of the going into, making, execution, subsidence and end, of
agreements, including contracts between individuals or between a part and his constituent
or between a part and an individual who isn't a part, and the results of default or
indebtedness with respect to the dealer or purchaser or mediator, the outcomes of a
rupture or oversight by the merchant or purchaser, and the duties of individuals who are
not gatherings to such contracts.

A portion of different forces vested with the SEBI are :

12. The guideline of tarawani business including the putting of confinements

subsequently.

13. The posting of securities on the stock trade, the incorporation of any security with the
end goal of dealings and the suspension or withdrawal of any such securities, and the
suspension or denial of exchanging any predetermined securities.

14. The strategy and system for the settlement of cases or questions, including settlement
by mediation.

15. The duty and recuperation of expenses, fines and punishments.

16. The guideline of the course of business between gatherings to contracts in any way.

17. The fixing of a size of business and different charges.

18. The creation, contrasting, settling and shutting of deals.

19. The crises in exchange which may emerge, regardless of whether because of pool or
syndicated activities or cornering or something else, and the activity of forces in such
crises, including the ability to fix most extreme and least costs for securities.

20. The guideline of dealings by individuals for their own record.

21. The detachment of the elements of dealers and middlemen.

 22. The confinements on the volume of exchange done by any individual part uncommon
conditions.

23. The commitment of individuals to supply such data or clarification and to deliver such
archives identifying with the business as the administering body may require.

24. The bye laws made under this area may-

I. Indicate the bye laws the repudiation of which will make an agreement went into
generally than as per the bye laws void under segment 14(1)

ii. Give that the contradiction of any of the bye laws will render the part concerned at risk
to at least one of the accompanying disciplines, in particular-

a. Fine

b. Removal from enrollment

c. Suspension from participation for a predefined period

d. Some other punishment of a like sort not including the instalment of cash

6.3 Power to refuse listing

The stock trades have been vested with the ability to decide whether a specific security of an
organization whenever fit for posting on the concerned stock trade. The compliances of the
posting understanding must be basically trailed by

6.4 Powers to impose terms and conditions on intermediaries

The Securities and trades leading body of India has been set up as the zenith body for
overseeing the working of the stock trades all through the nation. In the limit of being the
administrative specialist of the stock trades all through the nation. the SEBI has been
consulted with the ability to force the different terms and conditions on the middle people as
to their working in the securities advertise. On account of BSE Brokers Forum versus SEBI,
the court had held that the SEBI has the innate capacity to force the terms and conditions on
the different mediators who are working in the securities showcase.

So as to complete the said capacity of the guideline of the middle people, the financial
exchange has been met with a wide scope of forces to oversee the working of the go-
betweens on the stock trade. These forces might be specified as underneath 1. The SEBI
has the ability to enroll and control the working of the different go-betweens of the
Securities advertise. 2. Capacity to manage securities exchange when all is said in done
The stock trade has been vested with the ability to control and direct the working of the
financial exchanges concerned hotel general which implies that it might control the
working of the stock trade. The courts have likewise as of late been of the view that the
stock trades have been intrinsically vested with the ability to control the working of the
stock trades. On account of Deshbandhu Gupta versus Delhi Stock Exchange , it was held
the concerned stock trade has the ability to influence runs so as to manage the working of
the stock trades when all is said in done. The guideline of the stock trades will incorporate
a wide scope of exercises starting from guideline of the working of the stock trades to the
guideline of the different viewpoints with respect to the working of the stock trades.
 CHAPTER-7

CONCLUSION

7.1 CONCLUSION DERIVED FROM THE ABOVE INFORMATION

From the paper it very well may be securely surmised that the stock trades that had been at
first made to build the dimensions of interest in the nation and production of an air of interest
in the nation has now moved to the expanding of the abundance of the speculators that are
working in the stock trade.

From the undertaking, it very well may be deduced that the theories that I had started with
have been demonstrated right. The primary theories that I had taken up was that the stock
trades were not playing out the assignment that they had been set up for. From the venture it
very well may be derived that the stock trades are to be sure not playing out the undertaking
that they had been made to perform. They had been set ready for expanding the dimensions
of interest in the nation yet with the progression of time, because of the contribution of
tremendous wholes of cash the focal point of the exchanging on the stock trades has moved
the significant focal point of the stock trades from conduction of an exchanging the securities
of the organizations to the demonstration of benefit booking from the distinction between the
buy and deal costs of the securities.

The following theories that I am trying to test if the stock trades are starting to play out the
jobs past for which they had been made. This theories has been demonstrated right somewhat
as the stock trades were made to expand the speculation levels in the nation alongside giving
the little financial specialists to claim a piece of the organization. This can't be, anyway
completely right as the capacities that the stock trades perform are carefully administered by
the arrangements of the securities contracts(regulation) act, 1956, and the capacities that are
not given can't be performed by the stock trades as they would be esteemed as being ultra
vires and unlawful. The stock trades need to basically comply with the capacities that they
have been endowed to perform. The main escape clause that lies in this is the demonstration
might be quiet as to the reality of execution of specific jobs that the stock trades perform.
This may emerge because of the way that these jobs of the stock trades were not imagined at
the season of the death of the enactment yet have appeared at a later stage.

The following speculations that I seeked to test was that if the Indian courts have neglected to
influence the stock trades to play out the jobs that they had been made for. This speculation
stands erroneous as the premise of the working of the securities advertise in India is a free
market economy in which the exchanging of securities happens and the costs of the securities
are resolved based on the proportion between the interest and supply of the security.
Consequently, the Indian courts have no real task to carry out in this procedure with the
exception of on account of the commission of a gross inconsistency in the exchanging of the
equivalent.

The last theories that I seeked to test was concerning the reality if the stock trades are
subjectively practicing the forces that have not been justified under the demonstration. This
speculation additionally remains as inaccurate as the stock trades are under the severe control
of the account service in the legislature of India. So any instance of anomaly that surfaces
before it is made up for quickly move by the legislature of India.

7.2 SUGGESTIONS

From the above expressed reasons, it very well may be derived that despite the fact that there
is a need to achieve a more prominent guideline of the stock trades in the nation, yet the
structure of the Indian economy being a free market economy basically implies that the
administration just as the courts don't force a severe command over the working of the
exchange. The job of the courts just as that of the administration comes into activity just in
the situations where there is an announcing of any abnormality in the exchanging of the
securities.

So as to have a more prominent guideline over the working of the financial exchanges in the
nation, for the reasons that have been specified as over, the accompanying proposals are
made by the analyst dependent on his examination and comprehension of the subject. They
might be identified as beneath.
Right off the bat, attempt and uphold a component that achieves a more noteworthy guideline
of the securities showcase in the nation so as to anticipate the events of the anomalies that are
frequently dedicated in the securities advertise because of the escape clauses present in the
guideline of the securities markets.

A second component that can be joined is to have a stringent electrical switch framework
wherein the extents of the fortune gains are decreased.

Thirdly, there ought to be a more prominent mindfulness spread among the forthcoming and
current financial specialists about the job that the securities markets have been made to
perform so as to attempt and make them work in cognizance with the targets of the
foundation of the capital market.

The above expressed proposals are a portion of the recommendations that might be
consolidated so as to attempt and achieve a more prominent guideline of the securities
advertises in the nation. The best strategy to bring a more noteworthy guideline still remains
the best possible training of the present and imminent financial specialists about the job that
the securities exchange has been made to perform.
1
“History of stock market”, Available on www.economywatch.com/stock-markets-inworld/history.html published on 23rd
November, 2010, visited on 2nd march, 2019
2
“Amsterdam stock exchange/history “ by Joseph Nicholson, Available on corporate.nyx.com/whowe-
are/history/Amsterdam ,Visited on 2nd march, 2019.
3
“ New York stock exchange “, Available on www.hermes-press.com/wshist1.htm ,Visited on 2nd march 2019.
4
“London stock exchange history “Available on www.advin.com/stockexchanges/history/LSE/London stock exchange ,
Visited on 2nd march, 2019.
5
“Tokyo stock exchange history”, Available on www.gocurrency.com/articles/stories-xchange,htm, Visited on 2nd march,
2019.
6
Singapore Stock Exchange/History“, Available on finance.mapsofworld.com/stock exchanges ,Visited on 2nd March,
2019.
7
“Bombay stock exchange/history“ Available on www.advin.com/ stockexchangeshistory/ bombay stock exchange, Visited
on 2nd march 2019.
8
“National stock exchange history “Available on www.advin.com/ stockexchanges history /national stock exchange,
Visited on 2nd march, 2019.
9
Sanjiv Aggarwal “Guide to Indian Capital Market” First Edition, Bharat Publishing House, Edition 2000, Pg 774
10
Classification of market and origin of Indian stock market https://www.ukessays.com/dissertation/literature-
review/economics/overview-of-national-stock-exchange.php, Visited on 5 th marcg,2019
11
Securities Contracts (Regulation) Act, 1956, Section. 2(i).
12
Companies Act, 1956, Section 2(39)
13
Supra note 21 , Section 19.
14
Ibid.
15
Sanjiv Aggarwal “ Guide to Indian Capital Market” 2000 Edition, Pg 252 ,Publisher Bharat Law House, year 2000.
16
“ Functions of Stock Exchange” by Hummad Ahmed, Available on www.scribid.com ,Visited on 18th February, 2019.
17
Available on Indianblogger.com/functions of a Stock Exchange, Visited on 18th February, 2019
18
Supra n. 30, Pg 411.
19
Ibid, Pg 415
20
Supra n. 30, Pg 417
21
Securities Contracts (Regulation) Rules, 1957, Rule 19(1).
22
Supra n. 48
23
Supra n. 49, Rule 19(2)
24
Supra n. 30, Pg 423.
25
Supra n. 22, Section 73(1A)
26
Ibid, Section 73(5)
27
Supra n. 21, Section 22
28
Supra n. 21, Section 22
29
SEBI Press release dated 7 April 1995.
30
Supra n. 30, Pg 424.
31
Supra n. 22, Section 86.
32
Supra n. 49 ,Rule 19.
33
Supra n. 30, Pg 477.
34
Supra n. 30, Pg 474.
35
Supra n. 30, Pg 782.
36
SEBI( intermediaries) Regulation, 2008 Regulation 2(g),.
37
Aggarwal Sanjiv “ Guide to Indian capital market” 2000 edition Publishing House.
38
Regulation 2(cb) SEBI( merchant bankers) regulations, 1992.