Introduction:
Let me introduce a few characters Ajit and Vishnu, in our scenario. Ajit is continuously focused on investing his money in the stock market and securities. Vishnu is mostly worried about how his hard-earned money goes wrong if he puts his money in the stock market and securities.
Once Ajit and Vishnu came to meet each other and started talking about some of the best ways of investing money. Ajit was confident that his money would be increased if he puts his money in the stock market at one point in time or the other. Vishnu always warned Ajit that might be a potential fraud that might happen in the stock market as there is no proper regulation in the stock market. Then Ajit started telling about the SEBI, which got introduced in the Indian market.
Let’s see more about it..
Details:
In continuation with the article having 1991 Economic Reforms, we’ve got specific policy decision changes in economic history. In the year 1992, SEBI (Securities and Exchange Board of India) has got statutory powers with the SEBI act 1992.
Alright, first let’s try to understand about SEBI. SEBI was formed in the year 1988 by having the supremacy of statutory powers in the year 1992. Some of the major statutory needs which SEBI takes care are the following:
- Issuers of securities
- Investors
- Market intermediaries
So what does this mean to our Indian Economy and companies?
With the market situation, there might be a possibility to have any kind of malpractices to happen which might hinder the confidence of the general public. With this, SEBI has the power to approve and amend the laws of Securities and Exchanges. They also can inspect the books of accounts of financial intermediaries and call for periodical returns from recognized securities exchanges. Registration of brokers and sub-brokers and compel the companies to list their shares in one or more securities exchanges.
Having said that Vishnu came to know about some of the key functionalities of SEBI and had got a better picture of what’s happening in the market!!
Reference Articles:
https://en.wikipedia.org/wiki/Securities_and_Exchange_Board_of_India
