STUDY OF

LEGAL ASPECTS IN FINANCE AND SECURITY LAWS.

PROJECT REPORT SUBMITTED TO

SAVITRIBAI PHULE PUNE UNIVERSITY, FOR

THE AWARD OF

BACHELOR IN BUSINESS ADMINISTRATION (BBA)

SUBMITTED BY

Mr. Nachiket Uddhav Suryawanshi

THROUGH

SANGHVI KESHRI ARTS ,

COMMERCE & SCIENCE COLLEGE

Ram Nagar, Telco Road, Chinchwad , Pune,

Maharashtra

2022-2023
 SANGHVI KESHRI ARTS , COMMERCE &
SCIENCE COLLEGE
Ram Nagar Telco Road , Chinchwad Pune , 411019________________ ___

CERTIFICATE
This is to inform you that Mr . NACHIKET UDDHAV SURYAWANSHI…………Of the Class TY

B.B.A. …………. Roll No. TYBBA 308……..has satisfactory completed project of Semester

Vth……..in the Subject 506 LEGAL ASPECTS IN FINANCE AND SECURITY LAWS....... as laid

down by the University of Pune for the academic year 2022-2023........

Project Guide Department Head of

Academic Head Principal

Lab In-charge

Seal

Project Examination

Seat No: Date:

Internal Examiner External Examiner

 INDEX
Chapter No.
Particulars Page No,

I Introduction 05-06

1.1 Executive Summary 7

II Literature Review & theory 08-12

III Research Methodology 13-15

3.1 Introductiion 16

3.2 Statement of Problem 17

3.3 Objectives of Study 18

3.4 Scope Of Study 18

3.5 Data Collection Method 19

3.6 Limitation of Study 19

IV Organizational Profile 20-43

V Data Analysis and Interpretation 44-55

VI Findings ,Suggestion and Conclusion 56-57

6.1 Findings 57

6.2 Suggestion 57

6.3 Learning of the Student through the Project 58

6.4 Contribution to Host Organization 59

6.5 Conclusion 59

Bibliography (Harvard style) 60

Annexure 61-63
 INVESTOR PROTECTION

Investor protection is one of the crucial elements of a

growing securities market. It focuses on making sure
that investors are fully informed about their purchases,
transactions and the corporate affairs and updates.

Various procedures, guidelines, rules and regulation

have been issued in the legislations to protect the
investor’s right and repose their confidence.

ROLE OF SEBI IN INVESTOR PROTECTION

Investors are the pillar of the financial and securities
market. They determine the level of activity in the
market.

They put the money in funds, stocks, etc. to help grow

the market and thus, the economy.
It is thus very important to protect the
interests of the investors. investor
protection involves various measures
established to protect the interests of
investors from malpractices.

Securities and Exchange Board of India

(SEBI) is responsible for regulations of the
Mutual Funds and safeguard the interests
of the investors. Investor protection
measures by SEBI are in place to safeguard
the investors from the malpractices in
shares, the stock market, Mutual Fund, etc.
The two broad objectives of SEBI are given
below:
i. Conducive environment: SEBI aims at
creating a proper and conducive
environment for raising money from
capital market through the rules,
regulation, trade practices and guidelines.
SEBI regulates stock exchanges and other
intermediaries in securities market such
as brokers, sub-brokers, merchant
bankers, venture funds, mutual funds, FII
etc.
ii. Investor protection and Education: SEBI
aims at protecting investors from
fraudulent practices and educating
investors so as to make them aware of their
rights as well as duties
 Measures taken by SEBI for Investor
Protection

SEBI has given out various methods and

measures to ensure the investor protection
from time to time.

It has published various directives, driven

many investor awareness programmes, set up
investor protection Fund (IPF) to compensate
the investors. We will look into the investor
protection measures by SEBI in detail.

i. Issue of regulation and guidelines : Build

the capacity of investors through
education and awareness to enable an
investor to take informed investment
decisions.
• SEBI endeavours to ensure that the
investor learns investing, that is, he
obtains and uses information required for
investing, evaluates various investment
options to suit his specific goals,
ascertains his rights and obligations in a
particular investment, deals through
registered intermediaries, takes necessary
precautions, seeks help in case of any
grievance, etc. SEBI has been organizing
investor education and awareness
workshops directly, and through investor
associations and market participants, and
been encouraging market participants to
organize similar programmes.
 It maintains an updated, comprehensive web site
for education of investors.
It publishes various kinds of cautions through
media. It responds to the queries of investors
through telephone, e-mails, letters, and in person
for those who visit SEBI office.

ii. Investor education:

Make available every detail relevant for investment in
public domain. SEBI has adopted disclosure based
regulatory regime.
Under this framework, issuers and intermediaries
disclose relevant details about themselves, the
products, the market and the regulations so that the
investor can take informed investment decisions
based on such disclosures.
SEBI has prescribed and monitors various initial
and continuous disclosures.
Safe transactions:
• Ensure that the market has systems and
practices which make transactions safe.
SEBI has taken various measures such as
screen based trading system,
dematerialization of securities, T+2
rolling settlement, and framed various
regulations to regulate intermediaries,
issue and trading of securities, corporate
restructuring, etc. to protect the interests of
investors in securities.
• It also ensures that only the fit and
proper persons are allowed to operate in
the market, every participant has
incentive to comply with the prescribed
standards.
iv. Grievance redressal system: Facilitate redressal
of investor grievances.
SEBI has a comprehensive mechanism to facilitate
redressal of investor grievances against
intermediaries and listed companies. It follows up
with the companies and intermediaries who do
not redress investors' grievances, by sending
reminders to them and having meetings with
them. It takes appropriate enforcement actions as
provided under the law (including launch of
adjudication, prosecution proceedings, directions)
where progress in redressal of investor grievances
is not satisfactory. It has set up a comprehensive
arbitration mechanism in stock exchanges and
depositories for resolution disputes of the
investors. The stock exchanges have investor
protection funds to compensate investors when a
broker is declared a defaulter.
Other measures:

• SEBI conducts inspection,

inquiries and audits of stock
exchanges, intermediaries and
self-regulating organisations and
takes suitable remedial measures
whenever necessary.
• Further it penalises those who
undertake fraudulent and unfair
tradepractices.
 INVESTOR’S GREIVANCES AND REDRESSAL
SYSTEM OF SEBI

In India investment risks are very high

due to
dishonest practices, frauds and unethical
investment culture. Investors experience
a
sense of helplessness and insecurity, they
have
hardly any confidence in financial
markets.
Investors are cheated by companies, by
lead
managers, by brokers and by everybody,
who is
capable of cheating them.
The Government, the Company Law
Board and the SEBI, in recent years
have made efforts to protect the
investors.
“
Investors protection is a wide term,
it encompasses all the measures
designed to protect investors from
malpractices of brokers, companies
managers to issue, merchant bankers,
registrar to issues etc.
The main complaints are against
brokers of stock exchanges, against
listed companies and mutual funds.

USUAL GRIEVANCES OF
INVESTORS
 Against Companies.
 Against Brokers.

 Against depositories.
 USUAL GRIEVANCES AGAINST COMPANIES

Delay in registering transfer of

securities.
1. Registration of transfers should be
done
by thecompanies within 30 days of
receipt
of share transfer instrument but
usually it
takes many months.
2. Non-payment or delay in payment
of dividend.
3. Dividends should be distributed
within 30 days from the date of
declaration but by manipulation of
procedures dividends may not be
received for months.
1.Non-repayment or delayed repayment of
public deposits. Thousands of depositors are
involved in litigation to get back their deposits
from companies.

2.Non-receipt of rights issue offer. The letter

of offer of rights shares should be sent to all
eligible shareholders by registered post and
this fact should be prominently advertised in at
least two all India newspapers. Shareholders
quite often are not informed of rights issue.

3.Non-receipt of duplicate share certificate.

A company is bound to issue duplicate share
certificates if the shares are lost or misplaced
by the shareholder, after receiving a request
along with the requisite fee and on completion
of formalities.
1.Transmission of shares. After the
death of a shareholder the ownership of
shares passes to his legal heirs which is
called transmission of shares. The
company is bound to transfer the shares
in the name of legal heir of the
deceased.

2.Non-receipt of notice of meeting.

Every shareholder whose name appears
in the register of members is entitled to
receive 21 days advance notice of
meeting of shareholders. Non-dispatch
of notice of meeting to shareholder is
common but serious lapse.
USUAL GRIEVANCES AGAINST
BROKERS

1. Delay or default in payment of

securities sold. A broker has to
make payment to client who has
sold securities through him within
in 48 hours of payout of funds by
clearing house of stock exchange or
the Clearing Corporation. but
brokers, as a rule, retain the sale
proceed as long as they can.
2.Delay or default in delivery of purchased security
to the client. A broker has to deliver the purchased
securities to his client within 48 hours of payout of
securities by the stock exchange. It never happens so,
in practice.

3.Non-Issue of contract note. Brokers have to issue a

contract note in in prescribed form to all their clients
within 24 hours of the transaction but they avoid
doing so to earn secret profits.
4. Charging excess brokerage from clients.
5.Non-passing of corporate benefits. A broker is duty
bound to pass all the corporate benefits like rights
shares, bonus shares, dividends etc. to the client he is
dealing with but, many a times brokers play tricks in
this regard.

6.Overcharging. The broker should charge or pay

only that amount for of sale or purchase of securities
at He should not overcharge for purchases or pay less
for the sales. In practice, most brokers play tricks
GRIEVANCES AGAINST DEPOSITORY
PARTICIPANT
Depository Participant is an institution which holds

securities either in certificated or

uncertificated form, help in dematerialization
of securities etc. of the holder. Various
banks and other institutions are doing this
work. Every depository participant must
forward all the dematerialization or
materialization requests of his clients to the
concerned company within 7 days of the
receipt of the request but delays are quite
common.
Main Depositories are:

• NSDL: National Securities Depositories

Limited (1996)
• CDSL: Central Depositories Services
Limited (1999)
An investor can seek redressal of his grievances from,
the following agencies:

1.Grievance cells in stock exchanges

2.SEBI
3.Company Law Board
4.Courts
GRIEVANCE CELLS IN STOCK
EXCHANGES
All the recognised stock exchanges have
established Investors services cells to redress
the grievances of investors.
These cells have played an important role
in settlement of grievances and have infused
confidence among investor.
Investors approach these investors grievance
cells to lodge complaints against companies
and
Members of the stock exchange acting as
brokers.
Both BSE and NSE too have their grievance
cells.
 METHOD OF REDRESSAL OF GRIEVANCE AGAINST
COMPANIES IN INVESTOR SERVICE CELL
1.If, in spite of reminder, the company fails to resolve
the complaints and the total number of pending
complaints against the company exceeds 25 and if
these complaints are pending for more than 45 days,
the cell issues a show cause notice of 7 days to the
company.
2.If the company still fails to resolve the complaint
within 7 days of issue of show cause notice the scrip
of the company is suspended from trading.
3.Investors grievance cell can also transfer scrips of
defaulting company to Z category for non-resolution
of investors complaints
1.Companies which have a long
history of not resolving investors
grievances and have a large number
of pending complaints are instructed
to employ special personnel to clear
pending complaints on a priority
basis.

2.After receiving the complaint from

investors, these are forwarded to the
concerned company which is
directed to solve the matter within
15 days, progress is monitored.
 METHOD OF REDRESSAL INVESTORS GRIEVANCES
AGAINST STOCK BROKER BY INVESTOR SERVICE CELL

1. When a complaint is lodged with the stock exchange authorities, they forward
it to the investor service cell which refers the complaint to the concerned
broker and asks him to settle the complaint and send a reply within 7 days.
2. If no reply is received or the received reply is not satisfactory the matter is
placed before the Investors Grievance Redressal Committee (IGRC) of the
stock exchange.
3. This committee hears both, the complainant, the broker and efforts are made
the solve the matter failing which, it is referred for arbitration which is a
quasi-judicial process.
4. A sole arbitrator is appointed if the sum is for less than 25 lakhs, for claims
above Rs. 25 lakhs, a penal of 3 arbitrators is appointed.
An aggrieved party can file an appeal against the award given by the arbitrator
in appropriate court.
OTHER MEASURES TAKEN BY
INVESTOR SERVICE CELL
Other measures taken for Investor protection by stock
exchanges and resolve the grievances of the investors
and members of the exchange are

1. Calling company representatives to the stock

exchange to interaction.
2. Calling registrars and transfer agents to the stock
exchange to interact.

3.Issuing monthly press releases,

4.Listing top 25 companies against whom maximum

complaints are pending for resolution, this is also
released on the website of the exchange.
5.In the case of Bombay Stock Exchange, it can pursue
Mumbai based companies to depute their
representatives to the exchange to take up the
pending list of complaints and resolve them without
delay.
REDRESSAL OF GRIEVANCES THROUGH SEBI

 Complaints arising out of activities that are covered

under SEBI
Act, 1992; Securities Contract Regulation Act, 1956;
Depositories Act, 1996 and Rules and Regulations
made thereunder and provisions that are covered
under Section 55A of Companies Act, 1956 are
handled by SEBI.

SEBI SEBI has a dedicated department viz., Office of

Investor Assistance and Education (OIAE) to receive
investor grievances Grievances pertaining to stock
brokers and depository participants are taken up with
respective stock exchange and depository for redressal
and monitored by SEBI through periodic reports
obtained from them.
 Grievances pertaining to other intermediaries
are
taken up with them directly for redressal and
are
continuously monitored by SEBI.
 Grievances against listed company are taken
up with the respective listed company and are
continuously monitored. The company is
required to respond in prescribed format in the
form of Action Taken Report (ATR). Upon
the receipt of ATR, the status of grievances is
updated.
SCORES (SEBI online complaint redressal system)

 SCORES is a web-based centralized grievance

redressal system of SEBI. (http://gov.in )
 SCORES is web-enabled and provides online access
24 x 7.
 Complaints and reminders thereon can be lodged
online at the above website at anytime from
anywhere.
 An email is generated instantaneously
acknowledging the receipt of complaint and
allotting a unique complaint registration number to
the complainant for future reference and tracking
 The complaint forwarded online to the entity
concerned for its redressal
 The entity concerned uploads an Action Taken
Report (ATR) on the complaint.
 SEBI peruses the ATR and closes the complaint if it
is satisfied that the complaint has been redressed
adequately.
 Guidline protection related to investors
 SEBI (Disclosure and Investor Protection) Guidelines, 2000.

 SEBI (Investor Protection and Education Fund) Regulations 2009

REDRESSAL BY COMPANY LAW BOARD

 Company law Board which was constituted in May
1991 has
been entrusted with many powers which were
previously exercised by high courts. Every bench of
company Law Board is deemed to be a civil court
and every proceeding before it is deemed as judicial
proceeding.
 To protect the interests of investors it has the power
of inspection of records and documents and
enforcing attendance of witnesses.
 An aggrieved investor can apply to the Company
Law Board
 (i) To investigate the affairs of the company
 (ii) For relief in case of oppression of management
and/or mismanagement
 investors can also lodge complaints about delay and non-
payment of fixed deposits and interest thereon with the
Company Law Board.
 Representations about desired changes in the Companies Act
for investors protection can also be made to the Company
Law Board

REDRESSAL OF INVESTORS GRIEVANCES

THROUGH COURTS

 When an investor has tried all other ways of getting his

grievance settled there is no other way left with him except to
proceed against the company or the intermediary by way of
civil and criminal proceedings.
 Suits against companies can be filed in the high courts of the
states. Every high court has special designated benches about
company affairs and all complaints against companies in
breach of Companies Act are heard there.
 An aggrieved party can file cases in high courts against the
companies to get justice but the process of law is quite time-
consuming and costly and hence beyond the reach of small
investors and to provide assistance to investors by way of
education.
SECURITIES OMBUDSMAN

It is one of the duties of SEBI to protect the interests of

investors in securities market by taking necessary steps
as it deems fit. SEBI had been receiving complaints
form the investors against listed companies particularly
with respect to non receipt of refund orders, non
receipt of shares certificates / unit certificates, non
receipt of dividend and many more matters. The
complaints against intermediaries regarding deficiency
of service have been in a large number. For redressal of
the investor grievance SEBI has been advising the
companies or the intermediaries to redress the same.
The investors have also been claiming damages /
compensation / interest etc. The other course of action
against the listed company is prosecution or imposition
of monetary penalty of the erring companies.
The available action against intermediaries is the
suspension and cancellation of registration or
imposition of monetary penalty. The above does not
redress the grievance of investors or give any
compensation to the investors. Therefore, issue of an
alternative redressal mechanism which is cheap, fast,
informal and efficient has been engaging the attention
of SEBI.
The draft of the SEBI (Ombudsman) Regulations,
2003 has been prepared taking into consideration the
suggestions of the Committee. The proposal of
Ombudsman for Securities Market was discussed in
the meetings of the Legal Advisory Committee
constituted by the SEBI which is headed by Mr.
Justice M. N. Venkatachaliah, Former Chief Justice of
India.
The Committee has suggested the
framing of the SEBI (Ombudsman)
Regulations by SEBI pursuant to its
functions under section 11 of the
Securities and Exchange Board of India,
Act, 1992.
“Ombudsman” means any person
appointed under section 3 of these
regulations and, includes Stipendiary
Ombudsman;
“Stipendiary Ombudsman” means a
person appointed under regulation 9 for
the purpose of acting as ombudsman in
respect of a specific matter.
Appointment of Ombudsman :

1.The Ombudsman for Securities market will

be appointed by the Chairman, SEBI on the
recommendation of a Selection Committee
consisting of three members namely a retired
High Court Judge, an expert of financial
market and an Officer of SEBI not below the
rank of Executive Director.

2.In the initial stages the Ombudsman may be

appointed at the Head Office of the Board
and depending on the number of the
complaints in a particular area, the
Stipendiary Ombudsman may be appointed
and the infrastructure available at the
Regional Offices of SEBI or the local stock
With a view to make the concept easily
accessible to investors, inexpensive, quick
and informal it is proposed that the
Stipendiary Ombudsman may be appointed
by the Chairman, SEBI as requisition by
SEBI or the Ombudsman for a number of
cases in specific areas depending upon the
number of complaints received.

4.The Stipendiary Ombudsman shall exercise

all powers and functions as are vested in the
office of the Ombudsman.

5.The Stipendiary Ombudsman shall be paid

such fees and allowances for the services
rendered by him as may be determined by the
Board from time to time. Such fees shall be
honorary fees or sitting fees.
Qualification, Tenure etc. of Ombudsman:

1.The person of high moral integrity having atleast 40

years of age, having atleast 10 years experience of
service in any regulatory body or having special
knowledge and experience in law, finance, economics,
management and administration or either a retired
District Judge are qualified to be a District Judge may
be appointed as an Ombudsman.

2.The person to be appointed as a Stipendiary

Ombudsman has to be a person of good social standing
having served as a judicial or executive officer or
having experience of at least 10 years in matters
relating to consumer or investor protection or having
legal practice or served for a minimum period of 10
years in any financial institution or a regulatory body.
The different qualifications for both types of
Ombudsman is contemplated in view of the distinct
status of the two. The Ombudsman has to be
established as a permanent authority with monthly
salary and has to deal with the matters on continuous
basis. The stipendiary Ombudsman shall be appointed
for the specific disputes and may be paid sitting fees
depending upon the nature of the complaints.

Fees and Allowances -

1.The remuneration and other perquisites payable to the

Ombudsman shall be determined by the Board from
time to time and shall be borne by the issuer company
and the intermediaries in such proportion and in such
manner as may be specified by the Board from time to
time.

2.In terms of section 11 (2) (k) SEBI may for the

purposes of protection of the interests of the investors
may take measures by levying fees or other charges.
1.Therefore, it is proposed that the fees and other
expenses of the Ombudsman may be charged from
the listed companies and intermediaries and the
establishment costs, infrastructure costs may be
provided by the stock exchanges.

Nature of Complaints:

1. The Ombudsman will be empowered to receive

complaints against the listed public companies,
public companies which intend to get their
securities listed in a recognised stock exchange,
Mutual Funds, Collective Investment Scheme and
the intermediaries in securities market relating to
redressal of grievances of investors in securities,
claims of any money in respect of issue or dealing
in securities, deficiency in services.
2. The complaints may be filed either with the Board or
Ombudsman on any one or more of the grounds as mentioned
the draft Regulations. Such grounds inter alia include non-
receipt of refund orders / allotment letters , non-receipt of
dividend by shareholders or unit holders non-receipt share
certificates / unit certificates, debenture certificates and bonus
shares. etc. or any other matter as may be specified by the Board.

Manner of Resolution of Dispute

The Ombudsman is empowered to consider such complaints and

facilitate resolution through mutual agreement, or mediation and
on failure of these to adjudicate any claim against the listed
company or intermediary in respect of buying or selling of or
dealing in securities.

Annual Budget

The Ombudsman shall be responsible to draw up an annual

budget for its office in consultation with the Board and shall
incur expenditure within the approved budget. It shall submit an
annual report to the Chairman and furnish any information to the
Board as may be called for.
Power to call for information

For the purpose of carrying out his duties

the Ombudsman may call for information or
any document relating to the subject matter of
the complaint from the listed company /
intermediary or any other person institution
or authority which is in / his possession. The
Ombudsman shall maintain confidentially of
any information and document.

Procedure for filing complaint

1.The draft regulations contemplate a

simplified procedure.

2.The aggrieved person may file the

complaint in the specified form either
himself or through his authorised agent. The
complaints may be filed directly with the
Ombudsman or to the Board.
1. The draft regulations require that before making the
complaint to the Board / Ombudsman shall ensure that
he had made a representation to the company or
intermediary and the same has been rejected or no reply
has been received within one month and the complaint
is not in respect of the same matter which has been
settled through the Ombudsman and the complaint is
made within one year of the cause of action.

Re-examination of the award on adjudication

An aggrieved party to an award on adjudication may

make an application to the Board for re-examination of
the award. The Board may pass appropriate order on
such application within 45 days.

Costs and Interests

The Ombudsman may determine an award reasonable

compensation , costs of the proceedings and stipulate
interest to be paid by the party against whom the award
has been made till the award is implemented.
Implementation of the award

The award on consent, agreement or the arbitral award

by the Ombudsman or by the Arbitral Committee shall
be binding on the parties. If any party fails to implement
the award he shall be liable for action under section 15C
of the SEBI Act, suspension of trading or delisting of
securities, suspension or cancellation of registration etc.

Disclosure of the system by the listed companies and

the intermediaries

1. As a matter of disclosure to investor and investor

awareness it has been provided that the listed
companies and the intermediaries shall be required to
display the name and address of the Ombudsman to
whom the complaints are to be made by the aggrieved
party in their office premises in such a manner that the
visiting shareholders and investors can take notice. The
listed companies and the intermediaries are also
required to disclose in their offer documents or clients’
agreement the grievance
2. The failure to display the information as
above or furnishing information to the
Ombudsman as required under the regulations
shall attract penalty under section 15A of the
SEBI Act

REFORMS BROUGHT UP BY SEBI

In a recent study by world bank(2015), India has been

ranked 7th in the terms of protecting minority investors
which is much ahead of many developed countries.
The ranking improved due to reforms brought up by
the new Companies Act and SEBI amendments
thereafter.
The Securities and Exchange Board of India (Sebi)
announced several reforms to make the markets more
efficient and transparent. These include lower costs for
mutual fund investors and relief for foreign portfolio
investors (FPIs).
IPO share allotments:
Investors are classified into different categories.
Each category has to follow its own set of rules
while investing in Initial Public Offerings (IPOs).
Non-banking financial institutions (NBFCs) will
now be classified as ‘Qualified Institutional Buyers’
(QIBs). Until now, banks and insurance companies
were classified as QIBs. Not all NBFCs will be
classified as QIBs, though. Only those registered
with the RBI and with a net worth of over Rs 500
crore can be classified as QIBs.
Why this matters?

When a company issues shares in an IPO, half of

them are reserved for QIBs. If you are not qualified
as a QIB, you would take up shares available to the
general public. The non-institutional (i.e HNI and
Retail) category gets 50% of the shares. With NBFCs
now part of the QIB category, retail and HNI
investors stand to get more shares allotted in IPOs.
Usage of IPO proceeds
The market regulator will now regulate how
companies use the money they raise through
IPO over Rs 100 crore. Earlier, it used to
regulate any proceeds over Rs 500 crore.

Why this matters?

When companies list shares in the stock

market, they issue shares through the IPO.
After selling these shares to the public, the
company raises money. It then uses this
money for business purposes. However,
companies may not use the money for the
purpose stated in the documents. This could
be problematic for investors. This is why
SEBI wants to regulate companies more.
Instant redemption:
You can now buy and sell Liquid Funds
instantly. However, this is only for amounts up
to Rs 50,000 on a per- day basis. You can use e-
wallets to buy Liquid Funds up to Rs 50,000
per year.

Why this matters?

Liquid Funds just got more liquid. Earlier, it

could take about two- three working days for
the money to get credited to your account.
Now, instant buying and selling of such funds
could make them more like savings bank
accounts and thus, more appealing.
Commodity options trading:

SEBI finally allowed commodity markets to

start trading 'options' contracts. This was first
announced in the 2016 budget.

Why this matters?

‘Options’ are contracts where you agree to

buy or sell at a fixed price in the future date.
However, it is not compulsory to execute
these contracts. You can opt to not ‘buy’ at
that date. This makes Options a good tool to
hedge prices. This could help farmers and
other participants cut down losses due to
changes in prices.
A single license regime:

SEBI announced it will soon give exchanges

and brokers a single license to trade in both
equity and commodities. Until now, the SEBI
allotted separate licenses for equity trading
and commodity trading.

Why this matters?

Exchanges and brokers could only participate

in one market—either Equity or
commodities. With a single license, the stock
exchanges NSE and BSE could allow
commodity trading. The commodity
exchange MCX too could get into stock
trading. The same could apply to brokers too.