General Awareness About SEBI (Stock Exchange Board of India) for Upcoming Competitive Exams
The aims of SEBI are:
SEBI:
The Stock Exchange Board of India (SEBI), set up in 1988, was according statutory status in March 1992, following recommendations of the Narasimhan Committee.
SEBI is vested with wide-ranging powers, which are:
- To oversee constitution as well as operations of mutual funds
- All Stock
- Exchanges in the country have been brought under the annual inspection regime of SEBI for ensuring orderly and healthy growth of stock markets and investor protection
- With the repealing of Capital Issues Control Act in May, 1992, SEBI has been made the regulatory authority in regard to new issues of companies
- Merchant Banking has also been statutorily brought under the regulatory framework of the SEBI.
An amendment to the SEBI Act (1992) in 1995 has empowered SEBI to register and regulate new intermediaries in the capital market.
The aims of SEBI are:- Regulating business in stock markets and other securities markets.
- Registering and regulating of intermediaries such as stock brokers and sub-brokers associated with securities markets.
- Registering and regulating collective investment schemes including the mutual funds.
- Promoting and regulating self-regulatory organisations
- Prohibiting fraudulent and unfair trade practices relating to securities markets
- Curbing practice of insider trading.
The Securities and Exchange Board of the India (SEBI) has carried further the process of capital market reforms with the objective of moving towards a market which is modern in terms of infrastructure as well as internationally recognised best practices with investor friendly, efficient, safe and globally connective qualities.
The major reforms undertaken in the capital market in course of the year include the following:
- Tightening of entry norms for IPOs through modification of SEBI (Disclose and Investor Protection) guidelines.
- Relaxation of the IPO norms for companies in all sector by reducing the minimum level of public offering from 25 % to 10 % of post equity issue.
- Compulsory look building in respect of the IPOs companies without proper track record, including with stipulation that 60 % of the offer he allotted qualified institutional buyer.
- Permission for 100 % one-stage look building with bidding centres at all cities with stock exchange and liberalisation of investment norms for mutual funds by allowing open-ended schemes to invest up to 10 5 of their Net Assets Value (NAV) equality shares as in equity related instruments unlisted companies.
- Relaxation of permissible level of funds of commercial banks for investment in capital market by replacing the earlier celling of 5 % of previous years incremental deposits by 5 % of outstanding credit.
- Also setting up of the Investor Grievance Redressal Cell in Department of Economic Affairs to coordinate the efforts of regulatory agencies, Viz., RBI, SEBI and the department of company affairs.
- Introduction of derivative trading based on stock index futures.
- An important measures designed to further enhance the efficiency of the money related to the transitional full-fledged Liquidity Adjustment Facility (LAP) involving injection and absorption of liquidity.
- Regulatory powers have been given to the RBI under amendment to the Securities Contracts (Regulation) Act, 1956 to regulate dealing in the government and money market securities. The measures for further deepening and widening the government securities market included permission to entries who have allotted securities in primary auctions to sell them, on the allotment date itself and permission to all entire hearing the SGL and current account with RBI's Mumbai Office to undertake report in treasury Bills and Central State Government dated securities.
Important Links:
- Important Topic Money & Banking
- General Awareness about United Nations for Upcoming Competitive Exams
- Current Affairs of June Month 2014
0 comments: