Home       Top Rated       Submit Article     Advanced Search     FAQ       Contact Us       Lawyers in India       Law Forum     RSS Feeds     

Register your Copyright Online

We offer copyright registration right from your desktop click here for details.

Latest Articles | Articles 2014 | Articles 2013 | Articles 2012 | Articles 2011 | Articles 2010 | Articles 2009 | Articles 2008 | Articles 2007 | Articles 2006 | Articles 2000-05

Search On:Laws in IndiaLawyers Search

Mutual Consent Divorce in Delhi
We provide fast, cost effective and Hassle free solution.
Contact us at Ph no: 9650499965 (Divorce Law Firm Delhi)

E-mail login                       Password
     

Free Email Sign Up

Main Categories
 Accident Law
 Arbitration
 Aviation Law
 Banking and Finance laws
 Case Laws
 Civil Laws
 Company Law
 Constitutional Law
 Consumer laws
 Contracts laws
 Criminal law
 Drug laws
 Dubai laws
 Educational laws
 Employment / Labour laws
 Environmental Law
 family law
 Gay laws and Third Gender
 Human Rights laws
 Immigration laws
 Insurance / Accident Claim
 Intellectual Property
 International Law
 Juvenile Laws
 Law - lawyers & legal Profession
 Legal Aid and Lok Adalat
 Legal outsourcing
 Media laws
 Medico legal
 Miscellaneous
 Real estate laws
 Right To Information
 Tax Laws
 Torts Law
 Woman Issues
 Workplace Equality & Non-Discrimination
 Yet Another Category

More Options
 Most read articles
 Most rated articles

Subscription
Subscribe now and receive free articles and updates instantly.

Name
Email



Copyright Registration

To Copyright Your Books, Videos, Songs, Scripts etc
Call us at: 9891244487 / or email at: admin@legalserviceindia.com
Top Law Colleges

Law Updates:

# Income-Tax
# Family law
# Company Law
# Constitutional Law
# Partnership firms
# Immigration Law
# Cyber Law
# Lok Adalat, legal Aid & PIL
# Forms
# Trademarks
# Woman issues
# Medico Legal
# Consumer laws
# Criminal laws
# Supreme Court Judgments


Published : January 07, 2016 | Author : sneha suman
Category : Company Law | Total Views : 1689 | Rating :

  
sneha suman
LL.M ( National Law University, Odisha)
 

Analysis of the role of  Securities Exchange Board of India

Abstract
The economy of India is based on sound financial system that helps in accelerating production, capital and economic growth of the country. The main objectives of every financial system of modern economy is to accumulate savings and to develop saving habits among the people. It also helps the saving to allocate into productive usage such as trade and commerce. The optimum and efficient use and allocation of the savings helps in increasing the economic growth of the country. Investment is the indicator of the economy level of the country and it is imperative to protect the interest of the investors.

Role of SEBI in Protecting The Investors

Securities Exchange Board of India is mainly concerned with protecting the right of investors and for this purpose there has been several amendments to the SEBI Act to comply with the changing need of the capital market. Investors are considered to be the significant component of the financial market and thus it is the duty of the board to ensure that their rights are protected. In general parlance investor is the person who invests in business or projects with an intention to make profit out of the capital incurred by him.

Grievances of The Investors

Being an integral component of capital market there are numerous problems faced by the investors. The general complaints that are submitted by the investors against the companies are:

v Furnishing of inadequate information or false representation made by the companies in its prospects, application forms, advertisements and rights offer document.

v Delay in receipt of share certificates, debenture certificates and allotment letters.

v Investors are also aggrieved by causing delay in the issuance of bonus or right shares.

v Investors also faces problem in regard to the listing of securities with stock exchanges.

v Failure to receive notices pertaining to meetings and annual reports also causes grievances to the investors.

Iinitatives Taken by SEBI for Protecting the Interest of Investors

Investors are considered to be the backbone of the securities market. They play vital role in determining the intensity of activity in the economy. SEBI works in the direction of the welfare of the investors. There are foremost steps taken by SEBI in order to protect the interest of the investors:

v Issue of Various Guidelines- It has issued various guidelines to Companies introducing new issues in the market related to merchant bankers, portfolio managers, mutual funds and underwriters. It acts a watchdog and keeps vigilance on all the intermediaries.

v Public Interest Advertisements- The reason behind issuance of public interest advertisement is to enlighten the investors and to make them aware about the precautions that should be taken by them in order to safeguard their interest. It has introduced several awareness programs and is working extensively in the area of investor protection.

v Addressing grievances of investors- One of the essential roles of SEBI is to redress the grievances of the investors. Non-receipt of refund, allotment letters, non-receipt of dividend are some major problems faced by the investors.

v Investor education- Investors education is of prime importance to make investors aware about their rights and how they can be secured. The two monthly publications are also introduced by SEBI like market review and newsletter for disseminating information to the investors regarding their rights and measures that should be taken by them in order to safeguard their interests.

v Disclosures- Disclosure of the affairs of the Companies operation is vital in order to assess the investment decision by the investors. It has made some significant changes in those fields so that they can ensure much protection to the investors and their investment is not futile.

Role of SEBI in Curbing Ponzi schemes

The biggest fear that constantly lingers in the mind of investors is the expose to financial fraud. The designated ‘Watchdog’ of Securities Market in India, the Securities Exchange Board of India has failed many a times to protect the interest of investors. New measures are implemented after the revelation of financial scandal’s but fraudsters seems to be one step ahead in this cat and mice game. This scandal that took place recently is considered to be the most highlighted scandal in the recent memory. This incident raised question mark on the functioning of SEBI as it intervened too late in protecting the interest of the investors. The incident is marked as a failure of SEBI in discharging its functions as the collective investment schemes were run in the name of chit funds which indicated the grave failure of the state machinery that are considered to be the regulators of the chit funds as per the law of the country.

Conclusion
Investment is considered crucial for the development of the capital market. Investment is the indicator of economy level of the country. It is vital to protect the interest of the investors so that they can be encouraged to make more investments. SEBI was established with the purpose of regulating the capital market and protecting the interest of the investors. Several regulations are made by the board for ensuring efficient functioning of the market. It would not be justified if the effort made by SEBI in improving its position as a regulator of market is not appreciated. It is extra ordinarily difficult for the market regulators to keep a check on each activities of the financial market and prevent the scams that take place. But, SEBI by revising its regulations and by making them more stringent and investors friendly has taken a commendable step. One of the major steps taken by the government in improving the condition of the capital market and protecting the interest of the investors was the amendment of the securities laws of the country. This amendment was most awaited and we can expect from the board to act vigilantly and to ensure that no such scams like Saradha and Sahara takes place in near future.

Endnotes
# Functions of SEBI, available at http://universalteacher.com/1/functions-of-SEBI (Last visited on December 31, 2015).
# Dr.Kvsn Jawahar Babu, Investor Protection measures by SEBI, available at http://prj.co/in/setup/business/paper61.pdf (Last visited on December 27, 2015)
# Shipra Bansal, Role of SEBI in investor protection, available at http://www.i-scholar.in/index.php/sajmmr/article/view/45204 (Last visited on December 28, 2015)
# Ravi Singhania, SEBI v. Investor Protection, available at http://www.icsi.edu/docs/webmodules/programmes/33NC/33souvearticlepsvenkitaraman.pdf (Last visited on December 28, 2015)
# Protection of Investors by SEBI, available at http://www.legalserviceindia.com/article/1334-Protection of the Investors-By-SEBI.html (Last visited on December 31, 2015)
# TAXMANN’S SEBI MANUAL VOLUME 1 (July 2014, 24th Edition)

Writing award This article has been Awarded Certificate of Excellence for Original Legal Research work by our Penal of Judges

 




1 2 3 4 5
Rate this article!     Poor
Excellent    

Most viewed articles in Company Law category
Globalization & its impact on Indian Economy: Developments and Challenges
Winding Up of a Company
Retrenchment under Industrial Dispute Act, 1947
Dissolution of partnership firm
Articles of Association & Alteration of Articles
ADR Mechanism in India
Demerger under Company Law
Which employees do not fall under the ambit of Industrial Dispute Act, 1947
Directors & Their Liabilities
Corporate Personality
Remuneration of Directors
Prevention of oppression & mismanagement
Appointment, Disqualification And Liabilities Of Directors of A Company: A Legal Perspective
Minority Rights on Oppression and Mismanagement Under Companies Act, 1956 And Companies Bill, 2011
Position of a promoter in establishing a Company
The Employees Deposit-linked Insurance Fund Scheme
Most recent articles in Company Law category
Incorporation of A Private limited Company Under Companies Act 2013
One Person Company
Corporate Criminal Liability: A Jurisprudential and Comparative Approach
Distribution arrangement, whether it creates a permanent establishment
Doctrine of Alter Ego and Attribution
Fast Track Exit
Voluntary winding-up of the Company by Members
Corporate Renaissance
Trade, Commerce and Intercourse
The Corporate as a Criminal
Need For Corporate Social Responsibility
Role of Securities Exchange Board of India
Establishment of Foreign Entity in India
Obligations under GATT and GATS
The Role of Securities and Exchange Board of India in Regulating the Primary Market for Securities
Corporate Social Responsibility

Article Comments

Posted by Saurav on January 13, 2016
Good Work. Very thorough.

Post Your Comments
Name

Email

Your comments

Note : Your email address is only visible to admin, other members / users cannot see it.

You can use following FXCodes


BOLD : [b]
Italic : [i]

[b] Legal Services India [/b] is a [i]nice website[/i].
[url= http://www.legalservicesindia.com/article/ ]click here to visit.[/url]

Legal Services India is a nice website.
Click here to visit

 

Note : Currently, user comments are moderated and will be posted only after approval.



Welcome!
Please login or register a new free account.

Random Pick
Pragmatism is a philosophical tradition that began in the United States around 1870. Pragmatism rejects the idea that the function of thought is to describe, represent, or mirror reality.

Statistics
» Total Articles
1373
» Total Authors
3986
» Total Views
15518506
» Total categories
40

Law Forum


Legal Articles

Lawyers in India- Click on a link below for legal Services

lawyers in Chennai
lawyers in Bangalore
lawyers in Hyderabad
lawyers in Cochin
lawyers in Pondicherry
lawyers in Guwahati
lawyers in Nashik

lawyers in Jaipur
lawyers in New Delhi
lawyers in Dimapur
lawyers in Agra
Noida lawyers
lawyers in Siliguri

For Mutual consent Divorce in Delhi

Ph no: 9650499965
For online Copyright Registration

Ph no: 9891244487
Law Articles

lawyers in Delhi
lawyers in Chandigarh
lawyers in Allahabad
lawyers in Lucknow
lawyers in Jodhpur
Faridabad lawyers

lawyers in Mumbai
lawyers in Pune
lawyers in Nagpur
lawyers in Ahmedabad
lawyers in Surat
Ghaziabad lawyers

lawyers in Kolkata
lawyers in Janjgir
lawyers in Rajkot
lawyers in Indore
lawyers in Ludhiana
Gurgaon lawyers

TOP

India's Most Trusted Online law library
Legal Services India is Copyrighted under the Registrar of Copyright Act ( Govt of India) 2000-2016
 ISBN No: 978-81-928510-1-3