3. Learning Objectives
• To understand the trading procedure
• To understand and know about demat account
• To know about depositories
• To know about the objectives of SEBI
• To understand the functions of SEBI
4.
5.
6. ➢ Marketability and liquidity to
existing securities
➢ Pricing of Securities
➢ Safety of Transaction
➢ Contribution to economic
growth
➢ Spreading equity cult
Functions of Stock Exchanges
7. Selection of a broker
Opening D-mat account
Placing order
Execution of order
Settlement
8.
9. Dematerialisation
Buying and selling of securities
are settled through an electronic
book entry form. This is a process
where securities held by the
investor in the physical form are
cancelled and the investor is
given an electronic entry or
number so that she/he can hold
it as an electronic balance in an
account. This process of holding
securities in an electronic form is
called dematerialisation.
Rematerialisation
Reconverting electronic holdings
into physical certificates is known
as rematerialisation.
10. Depository
A depository is like a bank and keeps securities in electronic form on
behalf of the investor.
A securities account can be opened, all shares can be deposited, they
can be withdrawn/ sold at any time and instruction to deliver or
receive shares on behalf of the investor can be given.
It is a technology driven electronic storage system.
It has no paper work relating to share certificates, transfer, forms, etc.
All transactions of the investors are entered in a book entry mode.
11. Security and exchange Board of India was
setup in1992 to regain the trust of all
investors, to protect their interests and to
regulate business of stock exchanges.
12. ▪ To provide a fair, efficient and
transparent security market
▪ To enable shorter settlement cycle
▪ To meet modern global
standards of securities market.
▪ To introduce various reforms for
proper working of Indian
Securities market
14. Regulatory Functions
(i) Registration of brokers, sub-brokers and other players in the
market
(ii) Registration of collective investment schemes and mutual funds.
(iii) Regulation of stock brokers, portfolio exchanges, underwriters
and merchant bankers and the business in stock exchanges and any
other securities market
(iv) Regulation of takeover bids by companies
(v) Calling for information by undertaking inspection, conducting
enquiries and audits of stock exchanges and intermediaries
(vi) Levying fee or other charges for carrying out the purposes of the
Act
(vii) Performing and exercising such power under Securities Contracts
Act, 1956, as may be delegated by the Government
15. Development Functions
(i) Training of intermediaries of the securities market
(ii) Conducting research and publishing information
useful to all market segments
(iii) Undertaking measures to develop the capital
markets by adopting a flexible approach
16. Protective Functions
(i) Prohibition of fraudulent and unfair trade practice
like making misleading statements, manipulations,
price rigging etc.
(ii) Controlling insider trading and imposing penalties
for such practices.
(iii) Undertaking steps for investor protection.
(iv) Promotion of fair practices and code of conduct in
securities market
17. Review
• What are the objectives of SEBI?
• What are the functions of SEBI?
• Explain the trading procedure.
• Explain the working of demat system.
• What is a depository?
18. Recapitulation
• Securities and Exchange Board of India was established in 1988 and
was given statutory status through an Act in 1992.
• The SEBI was set-up to protect the interests of investors,
development and regulation of securities market.