SEBI 14pgp043 IIMRaiur
The role of SEBI in Indian regulatory Environment
And comparision with US and China
Submitted by Somal Kant 14pgp043 IIM Raipur
Introduction
Securities & Exchange Board of India (SEBI) formed under the SEBI Act, 1992 with the prime objective of Protecting the interests of investors in securities, Promoting the development and Regulating the securities market and matters connected with it. The act empowered sebi with necessary power to regulate the activities connected with marketing of securities and investment of stock exchange, merchant banking, port folio management, stock brokers and others in India.
The Securities and Exchange Board of India is perhaps the most important regulatory body similar to the Securities Exchange Commission in the US, it is the authority that has to always be active, moreover when the markets are doing well and there are a spate of IPOs (initial public offerings) or FPOs (follow-on public offerings).
Why SEBI is Required
Stock market indices reflects the economic conditions and the strength of a country’s economy. The indices increases when there is a export surplus, So it becomes crucial for every country that the indices figures show a true and clear picture about growth and strength of the economy. SEBI has a great responsibility in this scenario, therefore all modern economies recognized the need for sound regulation of securities markets. This is needed not just for proper functioning of these markets, but also for their survival. It is a regulation that will ensure that markets are safe and perceived to be safe by the public at large. It is good regulation that will ensure that necessary information is available to the public so that they can take informed decisions about investments. Today securities market regulation has evolved to include three principal objectives: (a) Fair, efficient and transparent markets; (b) Investor protection; (c) Reduction of systemic risk
FUNCTIONS AND POWERS OF SEBI
And comparision with US and China
Submitted by Somal Kant 14pgp043 IIM Raipur
Introduction
Securities & Exchange Board of India (SEBI) formed under the SEBI Act, 1992 with the prime objective of Protecting the interests of investors in securities, Promoting the development and Regulating the securities market and matters connected with it. The act empowered sebi with necessary power to regulate the activities connected with marketing of securities and investment of stock exchange, merchant banking, port folio management, stock brokers and others in India.
The Securities and Exchange Board of India is perhaps the most important regulatory body similar to the Securities Exchange Commission in the US, it is the authority that has to always be active, moreover when the markets are doing well and there are a spate of IPOs (initial public offerings) or FPOs (follow-on public offerings).
Why SEBI is Required
Stock market indices reflects the economic conditions and the strength of a country’s economy. The indices increases when there is a export surplus, So it becomes crucial for every country that the indices figures show a true and clear picture about growth and strength of the economy. SEBI has a great responsibility in this scenario, therefore all modern economies recognized the need for sound regulation of securities markets. This is needed not just for proper functioning of these markets, but also for their survival. It is a regulation that will ensure that markets are safe and perceived to be safe by the public at large. It is good regulation that will ensure that necessary information is available to the public so that they can take informed decisions about investments. Today securities market regulation has evolved to include three principal objectives: (a) Fair, efficient and transparent markets; (b) Investor protection; (c) Reduction of systemic risk
FUNCTIONS AND POWERS OF SEBI
References: 1. http://www.business-standard.com/article/international/india-scores-above-us-china-for-financial-market-regulation-114060100138_1.html 2. http://www.yourarticlelibrary.com/education/sebi-the-purpose-objective-and-functions-of-sebi/8762/ 3. http://www.indexmundi.com/factbook/compare/china.india/economy