The document discusses corporate governance and stock exchanges. It defines corporate governance as the rules, processes, and laws by which businesses are operated, regulated, and controlled. It also discusses how stock exchanges help companies raise additional funds through trading and provide a marketplace for investors. An effective corporate governance regime includes provisions for prosecuting unethical or illegal acts.

1. By
Saurabh Nehete
Vivek TV
Sagar Edke
Harsh Bakore
Ashish Barapatre

2.  Corporate governance, in plain terms, refers to the rules, processes, or laws
by which businesses are operated, regulated, and controlled.
 In recent times, corporate governance has received increased
attention because of high-profile scandals involving abuse of
corporate power and, in some cases, alleged criminal activity by
corporate officers.
 An integral part of an effective corporate governance regime
includes provisions for civil or criminal prosecution of individuals
who conduct unethical or illegal acts in the name of the enterprise.

3.  Objective of corporate governance is maximization of
shareholders wealth
 The rules, process or laws by which business are operated,
regulated and controlled
 Internal factors defined by the officers, stockholders or
constitution as well as external forces such as consumer
groups, clients and government regulations

4.  Section 2(j) Securities Contract (Regulation) Act,1956, “stock
exchange” means—
 (a) any body of individuals, whether incorporated or not,
constituted before corporatization and demutualization under
sections 4A and 4B, or
 (b) a body corporate incorporated under the Companies Act, 1956
(1 of 1956)
 whether under a scheme of corporatization and demutualization
or
 Otherwise, for the purpose of assisting, regulating or controlling
the business of buying,
 Selling or dealing in securities.

5.  Platform to the companies for raising additional funds.
 Trading floor.
 Trading using Network.
 The purpose of a stock market is to facilitate the exchange of
securities between buyers and sellers, reducing the risks of
investing.

6.  Helps to increase goodwill of company.
 New market for securities.
 Ready market for the purchase and rate of securities.
 Helps to gain confidence among investors.
 Get information to corporate sector regarding trends of
investment, investors, choice and priorities.
 Helps in creating the habit of savings.
 Invest their savings in corporate and government securities.

7.  Demutualization means restructuring the stock exchange and changing it
from a nonprofit organization mutually owned organization by its
members into a profitable company owned by various entities including
the public.
 Corporatization means stock exchange should be organized as a company.

8.  National Stock Exchange (NSE)
 Over the Counter Exchange of India (OTCEI)

9.  Right of appeal against refusal of stock exchanges to list
securities of public companies.
 Applications in Respect of New Issues or Offers for Sale or
Book-Building

10. Stock exchange can delist companies for a number of reasons
including :-
• Merger with another company
• Solvency problems
• Name change company asked to be removed
• Failure to comply with exchange rules

11.  For the discharge of its functions efficiently, SEBI has been vested with the
following powers:
 To approve by−laws of stock exchange .sebi
 To require the stock exchange to amend their by−laws.
 Inspect the books of accounts and call for periodical returns from recognized stock
exchanges.
 Inspect the books of accounts of a financial intermediaries.
 Compel certain companies to list their shares in one or more stock exchanges.
 Registration brokers.

12.  Primary Market
 Opportunity to issuers of securities; Government as well as corporates
 At Face Value, Discount or Premium value
 Secondary Market
 Traded after being initially offered to the public in the primary market

13. Thank You