Page 221 - DCOM510_FINANCIAL_DERIVATIVES

Financial Derivatives Anand Thakur, Lovely Professional University

Notes Unit 14: Regulation and Securities Markets in India

CONTENTS

Objectives
Introduction
14.1 Securities Markets in India
14.1.1 Primary Market
14.1.2 Secondary Market
14.2 Securities Market Regulation in India

14.2.1 Components of Security Market
14.2.2 Cooperation in Regulation
14.2.3 Self-Regulation
14.3 Securities and Exchange Board of India Act, 1992

14.3.1 Constitution of Securities and Exchange Board of India (SEBI)
14.3.2 Functions of SEBI
14.4 Summary
14.5 Keywords
14.6 Review Questions

14.7 Further Readings

Objectives

After studying this unit, you should be able to:
Discuss the securities markets in India;

Describe the securities market regulation in India;
Identify the components of security market;
Explain the Securities and Exchange Board of India Act, 1992;
Discuss the constitution of SEBI;

State the functions of SEBI.
Introduction

In the previous unit, you have studied about the rules and regulations in derivatives trading and
five main Acts governing the securities markets. We also discussed about the important
recommendations made by the Dr. L.C. Gupta Committee on the introduction of derivatives
markets in India and recommendations covered by J.R. Varma committee report. Also, we
learned the Securities Contracts (Regulation) Act, 1956 [SC(R) A] that was enacted to prevent
undesirable transactions in securities.
This unit will help you to understand about and regulations on securities markets in India. We
will also learn about the Securities and Exchange Board of India Act, 1992. Further, we will end

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