Regulation of

in Stock trading

Welcome to All…

SHANSON SHAJI15-PEC-25

AN OVER VIEW….

B.S.E (Bombay stock exchange) N.S.E (National stock exchange)

ESTABLISHMENT OF SEBIThe Securities and Exchange Board of India was established on April 12, 1992 in accordance with the provisions of the Securities and Exchange Board of India Act, 1992.

PREAMBLEThe Preamble of the Securities and Exchange Board of India describes the basic functions of the Securities and Exchange Board of India as"...to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto"

4 main Legislation governing the security market are the following…..S.E.B.I Act 1992;Which establishes S.E.B.I to protect investors and develop and

regulate security market.The companies Act 1956;Which set out the code of conduct for the corporate

sector in relation to issue; allotment and transfer of securities and disclosures to be made in public issues.

The securities contract (regulation) Act 1956;Which provides for regulation of transfer in securities through control over stock exchanges.

The Depositories Act 1996;Which provides for electronic maintance and transfer of ownership of demat securities.

Statutory powers of S.E.B.I.Protecting the interest of investor in securities.Promoting the development of the securities market.

Regulating the security market.Under this Act , S.E.B.I has full Autonomy and authority to regulate and develop an orderly security market.The responsible for the regulation of the security market is shared byI. Department of economic affairs(DEA)II. Reserve bank of India(R.B.I)III. Security exchange board of

India(S.E.B.I)

Providing Licence to dealers and brokers.

Auditing the performance of various stock exchange.

Controlling merge, acquisitions and take –overs of the company.

Prohibiting unfair trade practices in the market.

Rules and Regulations During trading B.S.E. and N.S.E. stock market opens at 9:00 am. The pre-open market start at 9:00-9:07am. During trading B.S.E. and N.S.E. stock market close at 3:30 pm. The closing market start at 3:30-4:00pm. The duration of the offer for sale shall be as trading hours of the

secondary market and shall not exceed one trading day. The placing of order on the exchange system shall take place only

during trading hours.

• Each client is given information regarding the market through telephone and via e-mail.

• After trading hours each client is given information regarding the stock they have brought and sold/holding.

• If research team given proper analysis regarding the market information to the clients so that he /she can Buy/Sell/Hold according to their ability.

BySHANSONSHAJI