Beruflich Dokumente
Kultur Dokumente
EXCHANGE BOARD
OF INDIA (SEBI)
Objectives of SEBI
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SAPM
Functions of SEBI
Regulating the business in stock exchange and any
other securities market
Registering and regulating the workings of
intermediaries associated with securities market
Registering and regulating the working of collective
investment schemes including mutual funds
Promoting and regulating self-regulatory organizations
Prohibiting fraudulent and unfair trade practices in the
securities market
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Functions of SEBI
Promoting investors education and training of
intermediaries in securities market
Prohibiting insiders trading in securities
Regulating substantial acquisition of shares and
take-over of companies
Calling for information, undertaking inspection,
conducting enquiries and audits of the stock
exchanges, intermediaries and self-regulatory
organizations in the securities market
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Organization of SEBI
Primary Mkt. dept.
Advisory
Committees
Institutional Invt.
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SEBI Regulates.
SEBI
regulates
Primary
Market
Secondary
Market
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Mutual
Funds
Foreign
Institutional
Investment
SAPM
07/24/15
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Conti..
1. Entry norms
a) Track record of dividend payment for minimum 3 yrs
preceding the issue.
b) Already listed companies - when post-issue networth
becomes more than 5 times the pre-issue networth
c) For Manufacturing company not having such track
record appraise project by a public financial
institution or a scheduled commercial bank.
d) For corporate body 5 public shareholders for every
Rs.1 lakh of the net capital offer made to the public
e) Banks 2 yrs of profitability for issues above par.
Offer documents to companies.
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Conti..
2. Promoters contribution
3. Disclosure
draft prospectus
Un audited financial results
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Conti..
4. Book building
SEBI recommends two-tier under writing system
One of the mode of public issue thru prospectus.
Role of syndicate members and book runners.
Minimum 30 centers.
5. Allocation of shares
Minimum application of shares
Reservation for small investors
Allotment of securities
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Conti..
6. Market intermediaries
Licensing of merchant bankers
Licensing of underwriters, registrars, transfer agents,
etc.,
Merchant bankers net worth Rs.5 crores
Segregate fund based from fee based activities.
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Conti..
1. Governing board
Brokers and non-brokers representation made 50:50
60% of brokers in arbitration, disciplinary & default
committees
For trading members 40% representation
2. Infrastructure
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3.
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4.
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5. Price stabilization
Division to monitor the unusual movements in prices.
Monitor prices of newly listed scrip from the first day
of trading.
Circuit breaker system and other monitoring restrictions
could be applied
Imposing of special margins of 25% on purchase in
addition to regular margin.
Price filters
Price bands
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6. Delisting
On voluntary de-listing from regional stock exchanges
buy offer to all share holders
Promoters to buy or arrange buyers for the securities
3 yrs listing fees from companies and be kept in Escrow
A/c with the stock exchange.
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The ceiling for overall investment for FIIs:of the paid up capital of the Indian company
10% for NRIs/PIOs.
20% of the paid up capital in the case of public sector banks, including the
State Bank of India.
Modifications in ceilings:The ceiling of 24 % for FII investment can be raised up to sectoral
cap/statutory ceiling, subject to the approval of the board and the general
body of the company passing a special resolution to that effect.
The ceiling of 10 % for NRIs/PIOs can be raised to 24% subject to the
approval of the general body of the company passing a resolution to that
effect.
SEBI guidelines for FIIs:According to the 1995 regulations, FIIs should hold certificate granted
by SEBI to trade in Indian stock market.
To grant the certificate the applicant should
1. Have track record, professional & competence record, financial
soundness, general reputation of fairness and integrity.
2. Regulated by an appropriate foreign regulatory authority.
3. Permission under the provisions of FERA Act 1973.(FEMA - 2006)
Valid up to 5 yrs.
Custodians
Is an agency
Appointment of the custodian
Maintenance of accounts
Submission of semi-annual reports (SEBI & RBI)
Inspection of accounts
SEBI Guidelines:-
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Regulation:-
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Disclosures
Dissemination process
Settlement
Badla trade
Special watch
Capital adequacy
Single authority
Stricter registration of brokers
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