STOCK EXCHANGE.docx - STOCK EXCHANGE What is a Stock...

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STOCK EXCHANGE What is a Stock Exchange? A stock exchange is a form of exchange which provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and dividends. Securities traded on a stock exchange include stock issued by companies, unit trusts, derivatives, pooled investment products and bonds. SEBI (Securities Exchange Board of India): The Securities and Exchange Board of India (frequently abbreviated SEBI) is the regulator for the securities market in India. It was officially established by The Government of India in the year 1988.Statutory powers were given to SEBI in 1992 after SEBI Act 1992 was passed by the Indian Parliament.
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SEBI has its Headquarters in Mumbai, and has Northern, Eastern, Southern and Western Regional Offices in New Delhi, Kolkata, Chennai and Ahmedabad respectively. Purpose and Role of SEBI: SEBI was set up with the main purpose of keeping a check on malpractices and protect the interest of investors. It was set up to meet the needs of three groups: Issuers, Investors and Intermediaries. Objectives of SEBI: The overall objectives of SEBI are to protect the interest of investors, to promote the development of stock exchange and to regulate the activities of stock market. It also helps prevent fraudulent malpractices.
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