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The Securities and Exchange Board of India Act, ' is an Act of the Parliament of India enacted for regulation and development of securities market in India. It was amended in the years , and to meet the requirements of changing.
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It attempts to protect the interest of investors and aims at developing the capital markets by enforcing various rules and regulations.

SECURITIES AND EXCHANGE BOARD OF INDIA ACT, [SEBI Act]

SEBI is a statutory regulatory body established on the 12th of April, It monitors and regulates the Indian capital and securities market while ensuring to protect the interests of the investors formulating regulations and guidelines to be adhered to. SEBI has a corporate framework comprising various departments each managed by a department head. Some of these departments are corporation finance, economic and policy analysis, debt and hybrid securities, enforcement, human resources, investment management, commodity derivatives market regulation, legal affairs, and more. Quasi-Judicial: SEBI has the authority to deliver judgements related to fraud and other unethical practices in terms of the securities market.

This helps to ensure fairness, transparency, and accountability in the securities market. Quasi-Executive: SEBI is empowered to implement the regulations and judgements made and to take legal action against the violators. It is also authorised to inspect Books of accounts and other documents if it comes across any violation of the regulations. SEBI helped the market participants by consolidating their settlement functions at a single clearing meeting and by reducing the effective trading cost for investors. The board improved the market by allowing the contributions of the foreign participants through certain background checks before entering the Indian Market.

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A well functioning securities market can stabilize economic growth. India needs investment for growth, so they need to improve market efficiency and protect the interests of investors to attract them to invest in our market. So, the capital market needs to improve investment opportunities for investors and take care of their interests and security. Depositories registered under SEBI are:. NSE introduced the rolling system which helped the investors to receive their payment within 5 days of the sale as it was days, before NSE.

Depository Systems play an important role as they help in eliminating the risks of holding physical securities. Initially, the buyers had to keep an eye on the transfer of shares but now the depository systems have reduced the risks by involving technology in the process. This helped in improving the chances of foreign investments in the Indian Capital Market. The advantages of Depository Institutions are:. The agents which provide services related to depositories to investors is known as a depository participant. For example stockbrokers, financial corporations, foreign banks, etc.

Chapter 2 (SEBI Act, 1992) Securities Law New syllabus

Free transferability of securities with security, accuracy, and speed is given by the Depositories Act, It was achieved by:. The rights of transferee are:. Staggered Delivery Period in Commodity futures contracts. Guidelines for Data Sharing. Guidelines for public issue of units of InvITs — Amendments.


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The company bagged roughly Rs. So, as a result, the Whole Time Member of SEBI passed an order on 23rd June to refund the money which was collected from the investors and restrained the companies promoters including Mr. Subrata Roy from reaching the securities market. The issues were:. The powers given to SEBI can not supersede other regulations provided under different laws which means SEBI must respect the provisions of other laws and must not conflict with the Ministry of Corporate Affairs where the interests of investors are at stake.

Quick Overview

So, the Supreme Court advised that SEBI has the jurisdiction to administer the listed public companies in matters related to the transfer of securities and also in those public companies where there is intended to obtain the securities which are listed under the Stock Exchange of India. Section 67 3 states that any security which is offered and subscribed by more than 50 persons will be considered as a public offer which gives the jurisdiction to SEBI and the companies have to comply with all the legal provisions related to this matter.

Sahara argued that the Companies Act is not applicable as it is applied to only listed companies and no company can be forced to get listed on the stock exchange. The Supreme Court rejected this argument and stated that the law is clear and impartial.


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The Supreme Court also observed that Section 73 1 of the Act provides a restriction on every company intending to offer shares and debentures to the public. So, SEBI strongly believes that the investors are the soul of the securities market and they need to protect the interests of investors for the development of the capital market.

SEBI deals with all the policies and regulations of the market. SEBI also signed a contract with the International Organization of Securities Commission and allowed its members to maintain a regular check for cross border misconduct in their respective jurisdictions. Sign in Join. Sign in. Log into your account.

FORMATION OF SEBI & ITS POWERS (SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992)

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