Thursday, 3 December 2015

Securities & Exchange Board Of India (SEBI) : Bank Exam PO & Clerk Study


SEBI was constituted by Govt. Of India during 1988 and accorded statuary powers under SEBI Act, 1992
The objectives are
(a) to protect interest of investors,
(b) to promote the development of security market,
(c) to regulate the security market. The SEBI Act was amended on Jan 25,1995 to give additional powers for ensuring orderly development of the capital market and to the investors.
SEBI ability to protect the interests of the investors.
SEBI can file complaints in courts and notify its regulations without the prior approval of Central Govt.

SEBI is managed by its Chairman and 5 members and has departments such as primary Market Deptt, Issue Management Deptt., Secondary Market Deptt, Institutional Investment Deptt. It has 2 advisory committees, one each for primary and secondary market to provide and regulations.

SEBI has been able to introduce certain measure such as
a) allotment of shares only if minimum 90% subscription is received from the public.
b) to refund the application money in case of non-allotment within 90 days.
c) payment of interest on refund amount after 30 days from date of closure of issue.
d) adequate disclosure of all material and specific risk factors associated with project in the prospects and the same to be attached with share application form.
e) Publication of quarterly results.
f) Introduction of stock-invests for subscription.
g) Free pricing of equity issues by companies
h) Completion of allotment within 30 days.

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