O SlideShare utiliza cookies para otimizar a funcionalidade e o desempenho do site, assim como para apresentar publicidade mais relevante aos nossos usuários. Se você continuar a navegar o site, você aceita o uso de cookies. Leia nosso Contrato do Usuário e nossa Política de Privacidade.
O SlideShare utiliza cookies para otimizar a funcionalidade e o desempenho do site, assim como para apresentar publicidade mais relevante aos nossos usuários. Se você continuar a utilizar o site, você aceita o uso de cookies. Leia nossa Política de Privacidade e nosso Contrato do Usuário para obter mais detalhes.
Control and Regulation of Stock Exchanges in India were regulated directly by the
Government of India under powers conferred in terms of the Securities Contract
(Regulations) Act 1956 up to the late Eighties. In the year 1988, the Government of India
constituted the Securities and Exchange Board of India (Popularly referred as 'SEBI') With
headoffice at Mumbaithrough anexecutive resolution to act astheindependent regulator
of stock exchanges, the primary market, mutual funds etc. Later SEBI was made into a
statutory corporate body in the year 1992 with the passing of the Securities and Exchange
The Stock Exchange in India are regulated by the securities contracts (regulation) Act of
5. Setting up directorate of stock exchange for administration and control of stock
2. That it will act in accordance with the condition laid down by the Central
Control by Central Government: under the act, the Central Government has the right to
control the stock exchange in the following ways:
1. By requiring stock exchange to furnish periodical returns about their affairs.
2. By requiring stock exchanges to provide any explanation and information.
3. By requiring the submission of the annual report.
4. By exerting its right, the Central Government may make an inquiry into the working
of any recognise stock exchange.
5. The Central Government may also order suspension of business and supersede
governing board of stock exchange if business is conducted in violation of rules.
6. The Central Government may appoint its own nominees on any stock exchange
subject to minimum limit of three.
7. It may also compel companies to themselves listed and also to comply with listing
Curbsonspeculation:the act asmade variouscurbson speculation.These are
1. Making option dealing illegal. Since july2001, ‘call’ and ‘put’ options have started in
2. Makingoptiondealingsbeforetheact void and
Directorate of stock exchanges: A Directorate of stock exchanges was set up in 1959. It
administers and implements the bye –laws contained in the securities regulation act. It is
both in and advisory position as well as in a position of implementing laws. It controls the
activities of the stock exchange and maintains a close watch over operations and other
illegal dealings.It also gives license to dealersonunrecognised stockexchanges.It maintains
a liaisonbetweenthe Government andstockmarketsin India.
Security Exchange Board of India: the securities and exchange board of India was
The controller of capital issue regulated the private sector companies in their activities
of securities to be issued, interest and dividend rates to be offered on debentures and
preferenceshares,issuesrelating topriceissuesandpremium securities.Thecontrollerof
issues was considered to be an in effective dormant institution and not responsive to
been formed. The primary objective of an ‘OTC’ market is to help small or medium
semi urban and rural areas. They would be decentralised and extend their operations