Page 77 - DMGT512_FINANCIAL_INSTITUTIONS_AND_SERVICES

Financial Institutions and Services

Notes SEBI has three functions rolled into one body quasi-legislative, quasi-judicial and quasi-
executive.
It drafts regulations in its legislative capacity, it conducts investigation and enforcement
action in its executive function and it passes rulings and orders in its judicial capacity.
Though this makes it very powerful, there is an appeals process to create accountability.
There is a Securities Appellate Tribunal which is a three member tribunal.

A second appeal lies directly to the Supreme Court.
SEBI has enjoyed success as a regulator by pushing systemic reforms aggressively and
successively.

SEBI has been active in setting up the regulations as required under law.

5.8 Keywords

Initial Public Offering (IPO): The first sale of stock by a company to the public.
Sensex: Sensitivity Index
Stock Exchange: An exchange on which shares of stock and common stock equivalents are
bought and sold.

5.9 Self Assessment

Fill in the blanks:
1. A new share trading platform called the ................, inaugurated recently, might at best
provide a lifeline to regional stock exchanges.
2. The two national level stock exchanges in India are ................ and ................ of India.
3. .................... is mutually-owned by a set of leading financial institutions, banks, insurance
companies and other financial intermediaries in India.
4. SEBI has three functions rolled into one body .............., .................... and ...................
5. SEBI is the .................. for the Securities Market in India.

6. ........................ is considered the first de-mutualised, online exchange dealing in numerous
commodities.
7. ........................ is regulated by the Forward Market Commission with reference to futures
trading in commodities.
8. .................. is the third largest bullion exchange and fourth largest energy exchange in the
world.
9. ..................... are people who are prepared to bear risks in anticipation of earning profits.
10. ..................... lessens risk since it involves the purchase or sale of a commodity with the
intention of counterbalancing the profit or loss of another investment.
11. A ..................... contract requires a buyer and a seller to take and make a delivery of a
definite quantity of a particular commodity at a future specified date.
12. ..................... Index consists of major Public Sector Undertakings listed on BSE.
13. All the ..................... indices of BSE are calculated and disseminated on BOLT.

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