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Stock Exchanges of India
Stock Exchange or share market plays a dominant role in mobilizing resources for corporate sector. It is a market for dealing in shares, debentures and financial securities. In the stock exchange, shares and debentures are bought and sold for investment as well as for speculative purposes.
There are 24 Stock Exchanges in the country :
- UP Stock Exchange, Kanpur.
- Vadodara Stock Exchange, Vadodara.
- Koyambtour Stock Exchange, Coimbatore.
- Meerat Stock Exchange, Meerat.
- Bombay StockExchange, Mumbai.
- Over the Counter Exchange of India, Mumbai.
- National Stock Exchange, Mumbai.
- Ahmedabad Stock Exchange, Ahmedabad.
- Bangalore Stock Exchange, Bangalore.
- Bhubhaneshwar Stock Exchange, Bhubhaneshwar.
- Calcutta Stock Exchange, Kolkata.
- Cochin Stock Exchange, Cochin.
- Delhi Stock Exchange, Delhi.
- Guwahati Stock Exchange, Guwahati.
- Hyderabad Stock Exchange, Hyderabad.
- Jaipur Stock Exchange, Jaipur.
- Canara Stock Exchange, Mangalore.
- Ludhiana Stock Exchange, Ludhiana.
- Chennai Stock Exchange, Chennai.
- MP Stock Exchange, Indore.
- Magadh Stock Exchange, Patna.
- Pune Stock Exchange, Pune.
- Saurashtra Stock Exchange, Rajkot.
- Capital Stock Exchange Kerala Ltd. Thiruvananthapuram.
- Bombay Stock Exchange ( BSE ) is one of the oldest stock exchanges in the world ( since 1875 ) and the oldest of Asia. The share sensex of BSE includes 30 shares.
- National Stock Exchanges ( NSE ) share sensex includes 50 shares.
Securities and Exchange Board of India ( SEBI )
- SEBI ( Securities and Exchange Board of India ) was initially constituted on April 12, 1988 as a non statutory body through a resolution of the Government for dealing with all matters relating to development and regulation of securities market and investor protection and to advise the Government on all these matters. SEBI was given statutory status and powers through an ordinance promulgated on January 30, 1992.
- The statutory powers and functions of SEBI were strengthened through the promulgation of the Securities Laws ( Amendment ) ordinance on January 25, 1995 which was subsequently replaced by an act of Parliament.
- In terms of this act, SEBI has been vested with regulatory powers over corporates in the issuance of capital, the transfer of securities and other related matters. Besides, SEBI has also been empowered to impose monetary penalties on capital market intermediaries and other participants for a range of violations.
- SEBI is managed by six members – one chairman ( nominated by Central Government ), two members ( officers of central ministries ), one member ( from RBI ) and remaining two members nominated by Central Government.
- The office of SEBI is situated at Mumbai with its regional offices at Calcutta, Delhi and Chennai. In 1988, the initial capital of SEBI was 7.5 crore which was provided by its promoters ( IDBI, ICICI, IFCI ). This amount was invested and with its interest amount day – to – day expenses of SEBI are met.
- All statutory powers for regulating Indian capital market are vested with SEBI itself.
Functions of SEBI in India :
- To safeguard the interests of investors and to regulate capital market with suitable measures.
- To regulate the business of stock exchanges and other securities market.
- To regulate the working of Stock Brokers, Sub-brokers, Share Transfer Agents, Trustees, Merchant Bankers, Underwriters, Portfolio Managers etc. and also to make their registration.
- To register and regulate collective investment plans of mutual funds.
- To encourage self – regulatory organizations.
- To eliminate malpractices of security markets.
- To train the person associated with security markets and also to encourage investor’s education.
- To check insider trading of securities
- To supervise the working of various organizations trading in security market and also to ensure systematic dealings.
- To promote research and investigations for ensuring the attainment of above objectives.