Page 99 - DCOM304_INDIAN_FINANCIAL_SYSTEM

Indian Financial System

Notes (h) Ensure full and adequate disclosures to the debenture holders so as to enable them
to make a balanced and informed decision;
(i) Not to make untrue statement or suppress any material fact in any documents,
reports, or information furnished to the SEBI; and
(j) Ensure that good corporate policies and corporate governance is in place.

Did u know? The Role of the SEBI in Primary Market
The SEBI plays a crucial role in the effective functioning of the primary market in the
country. This it seeks to do in following ways:
1. Prescribing detailed guidelines with respect to various methods that can be adopted
by a company to sell its securities;
2. Laying down comprehensive rules with respect to duties and responsibilities of
various players of the primary market;

3. Prescribing exhaustive codes of conduct for different players of the primary market
for protecting interests of the investors;
4. Conducting the inspection of the working of different intermediaries of the primary
market so as to ensure that the relevant books of accounts, other records and
documents are maintained properly as per the rules;
5. Suspending the certificate of registration granted to the intermediary in case of
violation of the provisions of the SEBI Act, and rules, not observing the prescribed
codes of conduct, failure to furnish information relating to his business as required
by the Board, non-submission of reports as required by the Board, indulging in
manipulating or price rigging or cornering activities, guilty of misconduct or
improper or unbusinesslike or unprofessional conduct, failure to pay the fees and
violation of the conditions subject to which the certificate of registration granted to
the intermediary.

Self Assessment

Fill in the blanks:

8. …………………….means a process by which a demand for the securities proposed to be
issued by a body corporate is elicited and built-up and the price for such securities is
assessed for the determination of the quantum of such securities to be issued by means of
a notice/circular/advertisement/document or information memoranda or offer document.
9. Merchant bankers must have a minimum net worth of `…………………
10. In …………………underwriting, a number of underwriters enter into an agreement among
themselves to underwrite an issue particularly the one which is quite large and/or
potentially risky
11. ………………………..represent intermediaries who are concerned with procuring the
subscription to the issue from prospective investors across the country.

12. A company contemplating to issue debentures to raise …………………from the market
has to appoint a trustee to safeguard the interests of the debenture holders.
13. A ……………………..trustee must get certificate of registration from the SEBI for acting as
trustee.

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