Securities

Under Securities Contracts Regulation Act (SCRA) .,1956 . Any instrument such as
shares , bonds, scrip , stocks or other marketable securities.

Functions of Securities Market

Place where buyers and sellers can transact in securities. Transfer of resources
from those having idle resources to others who have a need for them (company).

Which are the securities one can invest in?

1. Shares
2. Bonds and debentures
3. Government securities
4. Derivative products
5. Units of mutual funds

Why does securities market need regulator?

To ensure the desired behaviour of market participants. To protect the interest of

investors.

Who regulate the securities market?

Department of Economic Affairs (DEA)

Department of Company Affairs (DCA)
Reserve Bank of India (RBI)
Securities and Exchange Board of India (SEBI)

What is SEBI and what is its role?

Securities and Exchange Board of India - Regulatory authority in India.

Role of SEBI

To protect the interest of investors.

To promote the development of securities market.

To regulate the securities market.

Powers of SEBI

Regulate the business in stock exchange.

Register and regulate to promote and regulate self-regulatory organisation

Promote and regulate self regulatory organisation.

Prohibit fraudulent and unfair trade practices.

Participants

Issuer, Investor and intermediaries

Segments of securities market?

Primary market

Secondary market