The Stock Stethoscope

SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI)

Securities and Exchange Board of India (SEBI) is the regulatory body for the stock market of India. It was established in 1992, under section 3 of SEBI Act. SEBI has power to regulate all market intermediaries and also to penalize them in case of fraudulent activities and unfair trade
practices. SEBI has the authority to regulate and develop the stock market.

OBJECTIVES OF SEBI:

▪ To regulate the activities of the stock exchange.
▪ Protecting the rights of investors.
▪ Preventing fraudulent and unfair activities.
▪ Develop a code of conduct for intermediaries.

PURPOSE OF THE SEBI

The main purpose for which SEBI was setup was to keep a check on malpractices and protect the interests of investors. It was set up in order to meet the needs of three groups:
A) Issuers: To provide a marketplace in which they can raise capital easily.
B) Investors: To provide protection and supply of information.
C) Intermediaries: To provide a competitive professional market.

DEPOSITORY

What is a Depositary?
A depository is a facility such as a building, office or warehouse in which something is deposited
for storage or safeguarding. It can refer to an organization, bank or institution that holds securities and assists in the trading of securities. The term can also refer to a depository institution that accepts currency deposits from customers.

There are two depositaries in India and those are NSDL and CDSL.

NATIONAL SECURITIES DEPOSITORY LIMITED (NSDL)

National Securities Depository Limited (NSDL) is an Indian central securities depository based in Mumbai. It was established on 8th November 1996 as the first electronic securities depository in India with national coverage. It was established based on a suggestion by a national institution responsible for the economic development of India.

CENTRAL DEPOSITORY SERVICES LIMITED (CDSL)

Central Depository Services Limited (CDSL) is the second Indian central securities depository based in Mumbai. Its main function is the holding of securities either in certificated or dematerialized form, to enable book entry transfer of securities.