SAY-(will)-BE With the SEBI

Posted in Finance Articles, Total Reads: 1727 , Published on 06 January 2013

This Sanskrit Subhashit explicates that ‘Stuti is a young girl who bares maidenhood all her life because good people do not like her and she does not like the bad ones.’ This “Stuti” very well personifies the condition of our Indian stock market!  Good people keep themselves away from the stock market considering it as a mere gambling, while the candor and strict reforms of SEBI does not allow the bad people to fool around with it.

SEBI (Securities Exchange Board of India) is a statutory body of government to regularize and authorize the working of Indian capital markets. SEBI is held responsible for the issue relating to the investors, listed companies and market intermediaries. SEBI enjoys the rights of approval, denial, inspection and prosecution.

To safeguard the interests of investors and to boost the equity tradition not only in the metros but all over India, SEBI has recently generated few more reforms for the coming year. The first step is towards rejecting those IPOs regarding whom the board has any doubt of their intentions. The ultimate goal is to increase prolonged liquidity in the market. When FDIs and FIIs can, why cannot the domestic ones?

To encourage small investors, SEBI has allowed cash transactions of up to Rs.20000/- for those who do not hold bank accounts. For those who have bank accounts and demat account, SEBI has introduced Application Supported Blocked Amount (ABAS) facility wherein the unused amount is not idle and investors can fetch interest like any other savings bank account.

SEBI has recently posed Government to introduce monetary penalties to those who practice manipulations which are against the set rules and regulations. For this Government is likely to amend the regulations to strengthen the recovery policy.

The positive upshots are; SEBIs timely legal action against the defaulting members. SEBI issue public notices regarding the defaulting investors, fraudulent financial service companies and websites, actions against companies for non-compliance with its clients’ grievances etc.

Recently Government has put forth a possibility of merging all the financial service sector agencies viz; SEBI, IRDA, PFRDA and FMC with a view to bring more transparency in the overall working of the finance sector. This agency would be called as Unified Financial Agency. By unifying these 4 agencies now the country will have 7 agencies for the finance sector including RBI and FSDC (Financial Sector Development Council).

Stock market is definitely not a gambling but one of the wealth achievement platforms. It’s risky but surely outperforms other sources of income once you get hold of it. If stock market is learnt like any other faculty, it can give you exuberant results. Do not let the markets regulate you; instead you regulate the markets by just understanding the fundamentals & technicals of it. Many analysts are sincerely striving to systematize its study.

“Hopefully some good people will step forward and ask for Stuti’s hand”

This article has been authored by Bhagyashree R K Vivarekar from Decizonsoft Infotech Pvt Ltd.


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