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Investor protection - Copy - Copy

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Tanishq Anand
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8 views7 pages

Investor protection - Copy - Copy

Uploaded by

Tanishq Anand
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Investor protection

Full concept
Investor
An investor is a person that allocates capital with the
expectation of a future financial return or to gain an
advantage.

Types of investments include:


equity, debt securities, real estate, currency, commodity,
token, derivatives such as put and call options, futures,
forwards, etc.

Types of investors
Individual investors are not experienced
Experienced investors
Occasional investors
Investor protection

 The term investor protection is a wide term


including various measures designed to protect the
investors from malpractices of companies, merchant
bankers, depositary participants and other
intermediaries.
 Investors are heterogeneous group and they all need
equal degree of protection for their invested amount
from the corporate securities.
SEBI & role of stock exchanges in investor protection

The Securities and Exchange Board of India is the regulator of the


securities and commodity market in India owned by the Government of
India.
❑ It was established on 12 April 1988 and given Statutory Powers on
30 January 1992 through the SEBI Act, 1992.
❑ SEBI acts as a watchdog for all the capital market participants and
its main purpose is to provide such an environment for the
financial market enthusiasts that facilitate efficient and smooth
working of the securities market.
❑ The Indian capital market were regulated and resolved by capital
issues (control) act 1947
❑ Principles and policies under the control act were regulated by
controller of capital issues (CCI).according to Narasimha committee
observations; financial market needs a single regulatory authority
which should be able to regulate all the activities in the securities
market. Later on the CCI was closed and SEBI was established in year
1992.
Functions of SEBI

 A) A review of the market operations, organizational structure


and administrative control of the exchange
 B) Registration and Regulation of the Working of Intermediaries
 C) Registration and Regulation of Mutual Funds, Venture Capital
Funds &Collective Investment Scheme
 D) Promoting & Regulating Self-Regulatory Organizations
 E) Prohibiting fraudulent and unfair trade practices in the
Securities Market
 F) Prohibition of Insider Trading
 G) Investor Education and the training of Intermediaries
Objectives of SEBI

 Maintaining a conductive environment


 Encourage education among investors
 Development of infrastructure
 Fair and proper functioning.
SEBI Investor protection strategy

 SEBI’sinvestor protection strategy has


four elements
 Building capacity of investors
 Make proper disclosure
 Make transaction safe
 Redressal of investor grievances

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