Thursday, 12 December 2019

Unit 14: Securities and Exchange Board of India


                         Unit 14: Securities and Exchange Board of India

In this unit, we have discussed two segments of Indian securities market namely, primary market on issues market and secondary market or stock market.

We have highlighted recent trends in the primary, discussed various types of securities traded, market players and trading arrangements which exits in the can stock market.

Different aspects of the Indian stock market viz. its origin and growth, role and functions, membership, organization and management, trading systems, stock market information system, principal weakness of directions of reform have been explained so that you, as a student of this course, are able to clearly visualize the environment in which investment and portfolio management decisions are made.

A major development of the 1992 scenario of Indian stock exchanges namely, the promotion of Over The Counter Exchanges of India (OTCEI), its true features, trading mechanism and expected benefits to companies, investors and general environment of finance is also discussed. In the following unit we shall focus on the legal frame of Indian securities market.

Companies with an issued equity capital of more than ` 300 lakhs seeking listing on the OTCEI will have to comply with the listing requirements and guidelines as are applicable to such companies for enlistment on other organized stock exchanges; for venture capital companies, a minimum of 20% of capital has to be issued for listing in OTCEI.

Companies, which are engaged in investments, leasing, finance, hire-purchase, amusement parks, etc. will not be eligible for listing on the OTCEI.

DEA: Department of Economic Affairs MCA: Ministry of Company Affairs Merchant bankers: are authorized to act in the capacity of lead management co-market advisor or consultant to an issue, portfolio manager and underwriter to an issue as mandatory required.

Money market: The market for short-term debt securities with maturities of less than one year.

RBI: Reserve Bank of India SCR Act: The Securities Contracts (Regulation) Act, 1956, which provides for regulation of transactions in securities through control over stock exchanges SEBI: Securities and Exchange Board of India   

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