It has to be responsive to the needs of three particular parties in the capital market.Firstly there are the investors who invest their savings in the market in the hope for a return. the companies and institutions that issue securities in exchange for investment.Tags: Sales Force Automation ThesisSt Agnes Stand EssayCreative Intros For EssaysSocial Syntax ThesisA Christmas Carol Essay PromptsThesis On Protein PurificationStages Development Erik Erikson Essays
This was followed by the establishment of the SEBI Act on 30th January 1992, which gave SEBI their powers and functions.
The main aim of the SEBI was to control and regulate the capital markets.
Please take advise of certified financial advisers before trading or investing.
The Indian capital market is one of the biggest capital markets in the world.
Due to these malpractices, people started losing confidence in the stock market.
The government felt a sudden need to set up an authority to regulate the working and reduce these malpractices.It builds trust among the investors that their investment is safe within its guidelines.So ultimately the companies wanting to do business now have access to the capital they require.At the end of the 1970s and during 1980s, capital markets were emerging as the new sensation among the individuals of India.Many malpractices started taking place such as unofficial self- styled merchant bankers, unofficial private placements, rigging of prices, non-adherence of provisions of the Companies Act, violation of rules and regulations of stock exchanges, delay in delivery of shares, price rigging, etc.Over the years this leads to a building of trust and reputation of the capital market and the stock exchange.The SEBI Act lists out the powers of the Securities and Exchange Board of India.To make this happen, it ensures that the three main participants of the financial market are taken care of, i.e.issuers of securities, investor, and financial intermediaries.As a result, the Government came up with the establishment of SEBI.SEBI acts as a watchdog for all the capital market participants and its main purpose is to provide such an environment for the financial market enthusiasts that facilitate efficient and smooth working of the securities market.