GROUP 1

List the types of primary issues which requires SEBI

approval prior to issuance. Also list the various
Group 1 Capital Market entities which SEBI regulates.
  Public issue – IPO and FPO
Primary issues  Rights issue
requiring SEBI  Bonus issue
Approval.  Private placement – Preferential allotment, Qualified
institutional placement, Institutional placement program.
  Merchant bankers
Capital market  Stock brokers
entities  Bankers to issues
regulated by  Debenture trustees
SEBI  Share transfer agents etc
1. Set out the objectives behind the SEBI Act
2. Explain the functions of SEBI and its obligations for
maintaining an orderly primary and secondary
market in securities.
 The fundamental objective of SEBI is to safeguard the interest
of all the parties involved in trading. It also regulates the
functioning of the stock market.
 To monitor the activities of the stock exchange.
Objectives of  To safeguard the rights of the investors
SEBI  To curb fraudulent practices by maintaining a balance
between statutory regulations and self-regulation.
 To define the code of conduct for the brokers, underwriters,
and other intermediaries. 
 SEBI primarily has three functions-
 Protective Functions - to protect the interest of investors
and other financial participants.
Functions of  Regulatory Functions - to keep a check on the functioning
SEBI of the business in the financial markets.

 Development Functions