Institute of Business Management
C.S.J.M. University, Kalyanpur
(Security market operations)
New Issues: SEBI guidelines for public issues- pricing of issue, promoters contribution, appointment and role of merchant bankers, underwriters, brokers, registrars and managers, bankers etc; underwriting of issues; allotment of shares; procedures for new issues; e-trading.
SUBMITTED TO: SUBMITTED BY:
O.P. MAURYA Sir SHUBHAM MISHRA (GL)
IBM, CSJM UNIVERSITY PRIYANKA SINGH
MANISH Kr. SINGH
MASTER OF FINANCE & CONTROL
The establishment of the securities and exchange board of India (SEBI) was a land mark government measure to monitor and regulate capital market activities and to promote healthy development of the market. The SEBI was constituted in 1988 by a resolution of government of India and it was made a statuary body by the securities and exchange board of India Act, 1992. SEBI’s regulatory reach has been extended to more areas and there is a considerable change in the capital market. SEBI’s annual report for 1997-1998 has stated that throughout its six year existence as a statuary body it has sought to balance the twin objectives of investor’s protection and market development. It has formulated new rules and crafted regulations to foster development. Monitoring and surveillance was put in place in the stock exchange in 1996-97 and strengthened in 1997-98. Management:
Sec. 4 of the Act lays down the constitution of the management of SEBI. The board of members of SEBI shall consist of a chairman, two members from amongst the official of the ministers of the central government dealings with finance and law, one member from amongst the officials of the RBI, two other members to be appointed by the central government, who shall be professionals or have special knowledge of securities market. The Act empowers the central government to supersede SEBI, if on account of grave emergency, SEBI is unable to discharge the functions and duties under any provisions of the at SEBI persistently defaults in complying with any directions issued by the central government under the Act, or in the discharge of its functions and duties under the Act and as a result of such default the financial position of SEBI or its administration has deteriorated or in public interest. Capital Issues (control) Act, 1947:
The capital issues (control) Act; CICA is only of historical interest now as it was repealed by the capital issues (control) Repeal Act, 1992. But we should know about it because it played an important part in the functioning of the Indian capital market for as many as 45 years since 1947, and its provisions have now become the powers and functions of the SEBI. It was administered by the controller of capital issue (CCI) in the ministry of finance, department of economic affairs, GOI. While the SCRA mainly regulates the secondary market, the CICA mostly regulated the primary or new issue market for securities. The objectives of the Act were:
* To protect the investing public,
* To ensure that investments by the corporate sector were in accordance with the plans and that they were not wasteful and in...
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