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over capital issues has been dismantled and pricing of capital issues is now essentially market determined. Regulation of the capital markets and protection of investor's interest is now primarily the responsibility of the Securities and Exchange Board of India(SEBI), which is located in Bombay. Accordingly, SEBI's functions include:
The main features of the amendment to the Securities Contract (Regulation) Act, 1956, are: The ban on the system of options in trading has been lifted. The time limit of six months, by which stock exchanges could amend their bye-laws, has been reduced to two months. Additional trading floors on the stock exchanges can be established only with prior permission from SEBI. Any company seeking listing on stock exchanges would have to comply with the listing agreements of stock exchanges, and the failure to comply with these, or their violation, is punishable. Fraudulent and Unfair Trade Practices SEBI is vested with powers to take action against these practices relating to securities market manipulation and misleading statements to induce sale/purchase of securities. Inspection and Enforcement SEBI has the powers of a civil court in respect of discovery and production of books, documents, records, accounts, summoning and enforcing attendance of company/person and examining them under oath. SEBI can levy fines for violations related to failure to submit information to SEBI / to enter into agreements with clients / to redress investor grievances, violations by mutual funds/stock brokers and violations related to insider trading, takeovers etc.