1.1 SEBI and Regional Securities Exchanges
1.2 Functions and Responsibilities
2.1 Key Regulation of RBI
SEBI was supported on April twelve, 1992, beneath the SEBI Act, 1992. Headquartered in Mumbai, India, SEBI has regional offices in the Indian capital, Chennai, urban center, and Ahmedabad together with alternative native regional offices across distinguished cities in India. The objective of SEBI is to confirm that the capital of the Indian market works in a systematic manner and supply investors with a clear setting for his or her investment. To place it merely, the first reason for fixing SEBI was to stop malpractices within the capital market of India and promote the event of the capital markets.
SEBI and Regional Securities Exchanges
SEBI in its circular dated could thirty, 2012 gave exit tips for Securities exchanges. This was primarily thanks to the liquid nature of trade on several of 20+ regional Securities exchanges. It had asked several of those exchanges to either meet the desired criteria or take a sleek exit. SEBI’s new norms for Securities exchanges mandates that it ought to have a minimum net-worth of Rs. one billion associated with annual commerce of Rs. 10 billion. The Indian stock exchange regulator SEBI had given the recognized Securities exchanges 2 years to follow or exit the business
Functions and Responsibilities
The Preamble of the Securities and Exchange Board of India describes the essential functions of the Securities and Exchange Board of India as “to protect the interests of investors in securities and to market the event of, and to control the stock exchange and for matters connected therewith or incidental thereto”.
SEBI needs to be awake to the wants of 3 teams that represent the market:
- Issuers of securities
- Market intermediaries
SEBI has 3 powers rolled into one body: Quasi-legislative, quasi-judicial and quasi-executive. It drafts laws in its legislative capacity, it conducts an investigation and social control action in its government performs and it passes rulings and orders in its judicial capacity. Though’ this makes it terribly powerful, there’s associate charm method to form responsibility. There’s a Securities legal proceeding court that may be a three-member court and is presently headed by Justice Tarun Agarwala, a former jurist of the Meghalaya Supreme Court. A second charm lies on to the Supreme Court. SEBI has taken a really proactive role in streamlining speech act necessities to international standards. For the discharge of its functions expeditiously, SEBI has been unconditional with the subsequent powers:
- To approve by−laws of Securities exchanges.
- To need the Securities exchange to amend their by−laws.
- Inspect the books of accounts and require periodical returns from recognized Securities exchanges.
- Inspect the books of accounts of monetary intermediaries.
- Compel sure corporations to list their shares in one or additional Securities exchanges.
- Registration of Brokers and sub-brokers
The banking company of India is India’s financial institution and regulative body beneath the jurisdiction of Ministry of Finance, Government of India and is chargeable for the difficulty and provide of the Indian monetary unit and also the regulation of the Indian industry.
Key Regulation of RBI
An entity aiming to perform banking business in India should acquire a license from the tally. The tally has wide go powers to control the money sector including Prescribing norms for fixing and licensing banks (including branches of foreign banks in India, and whether or not a far off bank ought to be got wind of in India beneath the branch model or a WOS model); company governance; prudent norms; and conditions for structuring product and services. India has many alternative money sector regulators, including:
- The securities and exchange board of India, that is that the regulatory agency for the stock exchange in India; and
- The insurance regulative and development authority of India that regulates the insurance sector
The key statutes and laws that govern the industry in India are: the banking company of India Act, 1934; the banking regulation act, 1949; and also the interchange management Act, 1999 and also the rules and laws issued their beneath
- RBI Act: the tally Act was enacted to determine and began the functions of the RBI. The tally Act empowers the tally to issue.
- BR Act: the BR Act provides a framework for the oversight and regulation of all banks. It conjointly provides the tally the ability to grant licenses to banks and regulate their business operation. The BR Act conjointly sets out details of the varied businesses that a bank in India is permissible to have interaction in.
- FEMA: the FEMA is that the primary legislation in India that regulates cross-border transactions and connected activities. FEMA and also the rules created under that square measure administered by the tally.
In addition, the subsequent laws conjointly govern banking in India: the bankers’ books proof Act 1891; the recovery of Debts thanks to banks and money establishments Act 1993; the securitization and Reconstruction of monetary assets and social control of stake Act 2002; the payment and settlement systems Act 2007; and also the varied tips, directions and laws issued by the tally and NHB from time to time.