PATEL

KRUNAL
- 35

PATEL
KAUSHA
L- 34

SEBI
The SEBI of India was established by the government

in 1988.
It was given statutory recognition in 1992.
It mainly required to create a conducive environment
to mobilise sources due to various measure the
performance of capital market has improved.
Venture capital fund and private equity fund play an
active role in supporting and nurturing the start up
firm .
The global financial crisis in 2008 affected the capital
market. The number of initial public offering and the
amount mobilised in 2009.

AIMS OF SEBI
Regulating the working of mutual fund.
Preventing insider trading in securities
Preventing unfair practices in capital market.
Regulating takeover

of company and acquisition

of shares.
Regulating the work of stock broker and other.
Regulating the business in stock market and other
securities market.
Regulating and promoting the self regulatory
organisation.

FUNCTIONS OF SEBI
Regulating the business in stock exchanges and

other securities markets.

Registering and regulating the working of stock
broker, sub broker , share transfer agent,merchant
bankers.
Prohibiting fraudulent and unfair practices relating to
securities market.
Boards have some power as issuing commission for
the examination of witnesses and document.
The duty of board is to protect the interest of
investors in securities and to regulate the securities
market

STEPS TAKEN BY SEBI FOR CAPITAL

MARKET
Proper guidelines for companies to access the

capital market have also been issued.

SEBI advised all stock exchange in 1977 to setup
clearing house or corporation to generate
confidence among the investors.
Merchant banking has been brought under the
control of SEBI.
A detailed programme has been drawn by sebi to
inspect stock exchange and mutual fund.
Proper guidelines for the registration of stock
broker and sub broker.

To prevent insider trading ,detailed guidelines

have been issued this is done to protect the

interest of the investor and retain their
confidence in the market
It also facilitates the companies to buy back of
shares subject to certain regulations.
A number of measures have been taken to
strength the investor confidence.

STEPS TAKEN TO STRENGTH

GOVERNMENT SECURITIES
The auction system for the sale of government

securities was introduced

Stci was established to develop a secondary
market in government securities .In 1995 a
system of primary dealers was constituted
The nse was established in 1992 and it started
its operation in 1994 it is a limited liability
company it features are,
Computerised training
Use to satellite communication
Strict weekly settlement without badla

Over the counter exchange of India was setup

to facilitate multi tired market for securities
and ensure liquidity.
Establishment of various credit rating
agencies , mutual fund ,venture capital fund
and introduction of derivatives trading have
further strengthened the capital market.
the clearing corporation of India ltd was
established in 2001. It clear all transaction in
government securities and repos reported on
the negotiated dealing system of RBI.