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Regulator Securities Government of India Sebi Act 1992 Bandra-Kurla Complex Mumbai New Delhi Kolkata Chennai Ahmedabad
Regulator Securities Government of India Sebi Act 1992 Bandra-Kurla Complex Mumbai New Delhi Kolkata Chennai Ahmedabad
Regulator Securities Government of India Sebi Act 1992 Bandra-Kurla Complex Mumbai New Delhi Kolkata Chennai Ahmedabad
U.K. Sinha is the eighth chairman of the Securities Market Regulator. Prior to taking charge as
Chairman SEBI, he was chairman and managing director UTI AMC . He is a former Indian
Administrative Service officer of the 1976 batch...
If SEBI thinks that it will be against its rules and regulations, SEBI can ban on any
stock exchange to trade in shares and stocks.
Now, we explain role of SEBI in regulating Indian Capital Market more deeply with
following points:
SEBI has power to make new rules for controlling stock exchange in India. For
example, SEBI fixed the time of trading 9 AM and 5 PM in stock market.
SEBI has power to provide license to dealers and brokers of capital market. If
SEBI sees that any financial product is of capital nature, then SEBI can also
control to that product and its dealers. One of main example is ULIPs case. SEBI
said, " It is just like mutual fundsand all banks and financial and insurance
companies who want to issue it, must take permission from SEBI."
It can ban on the trading of those brokers who are involved in fraudulent and
unfair trade practices relating to stock market.
It can impose the penalties on capital market intermediaries if they involve in
insider trading.
Many big companies in India want to create monopoly in capital market. So, these
companies buy all other companies or deal of merging. SEBI sees whether this
merge or acquisition is for development of business or to harm capital market.
SEBI uses his powers to audit the performance of different Indian stock exchange
for bringing transparency in the working of stock exchanges.
Share trading transactions carry forward can not exceed 25% of broker's total
transactions.
ICAI is the authority for making new auditors of companies. SEBI creates good
relationship with ICAI for bringing more transparency in the auditing work of
company accounts because audited financial statements are mirror to see the real
face of company and after this investors can decide to invest or not to invest.
Moreover, investors of India can easily trust on audited financial reports. After
Satyam Scam, SEBI is investigating with ICAI, whether CAs are doing their duty by
ethical way or not.
a. The underlying Volatility Index has a track record of at least one year.
b. The Exchange has in place the appropriate risk management framework for
such derivative contracts.
2. Before introduction of such contracts, the Stock Exchanges shall submit the
following:
i. Contract specifications
iii. Margins
vi. The safeguards and the risk protection mechanism adopted by the exchange to
ensure market integrity, protection of investors and smooth and orderly trading.
vii. The infrastructure of the exchange and the surveillance system to effectively
monitor trading in such contracts, and
ix. Details of back testing of the margin calculation for a period of one year
considering a call and a put option on the underlying with a delta of 0.25 & -0.25
respectively and actual value of the underlying. Link
SEBI has also power to require report of portfolio management to check the
capital market performance. Recently, SEBI sent the letter to all Registered
Portfolio Managers of India for demanding report.