The Securities and Exchange Board of India Act, 1992 is an
act that was enacted for regulation and development of
securities
A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some countries and languages people commonly use the term "security" to refer to any for ...
market in India. It was amended in the years 1995, 1999, and 2002 to meet the requirements of changing needs of the securities market.
It was the 15th Act of 1992. The Act provides for the establishment of
Securities and Exchange Board of India
The Securities and Exchange Board of India (SEBI) is the regulatory body for securities and commodity market in India under the ownership of Ministry of Finance within the Government of India. It was established on 12 April 1988 as an executive ...
following the
Harshad Mehta scam
A confidence trick is an attempt to defraud a person or group after first gaining their trust. Confidence tricks exploit victims using their credulity, naïveté, compassion, vanity, confidence, irresponsibility, and greed. Researchers have ...
.
The Act contains 10 Chapters and 91 Sections.
Preamble
The Securities and Exchange Board of India is the sole regulator of the Indian Securities Market. Its Preamble describes its basic function as "...to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incid thereto"
Management of the Board
The management of Board is run by its members appointed by the central Government:
::(a) Chairman
::(b) Two members from the Ministry of Finance of the Union.
::(c) One member from the Reserve Bank
::(d) five other members.
Functions of Board
(1) Protect the interest of investors in securities market, regulate the securities market in India.
(2) Registering the depositories, investment schemes, mutual funds.
(3) Promoting fundamental education needed to invest in securities markets.
See also
*
Securities and Exchange Board of India
The Securities and Exchange Board of India (SEBI) is the regulatory body for securities and commodity market in India under the ownership of Ministry of Finance within the Government of India. It was established on 12 April 1988 as an executive ...
References
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Acts of the Parliament of India 1992
Securities and Exchange Board of India
Rao administration
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