regulatory institutes sebi and rbi

8/13/2019 Regulatory Institutes Sebi and Rbi

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REGULATORY INSTITUTES

SEBI AND RBI

UTKARSH GUPTA

B.B.A. VI SEM.

A700410019


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SEBI-SECURITIES AND

EXCHANGE BOARD OF INDIA

The Securities and Exchange Board ofIndia (frequently abbreviated SEBI) isthe regulator for the securities market in India.

It was formed officially by the Government ofIndia in 1992 with SEBI Act 1992being passedby the Indian Parliament.

Controller of Capital Issues was the regulatory

authority before SEBI came into existence itderived authority from the Capital Issues(Control) Act, 1947


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PURPOSE AND ROLE OF SEBI

To the issuers it aims to provide a market place inwhich they can confidently look forward to raisingfinances they need in an easy fair and efficient manner.

To the investors it provides protection of their rightsand interests through adequate accurate and authenticinformation and disclosure of information on acontinuous basis.

To the intermediaries it offers a competitive ,professionalized and expanding market with adequateand efficient infrastructure so as to render betterservice to investors and issuers.


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OBJECTIVES OF SEBI

To regulate stock exchanges and the securitiesindustry and to promote their orderly functioning.

To guide , educate and protect the rights andinterests of individual investors.

To prevent trading malpractices and achieve abalance between self regulation by the securitiesindustry and its statutory regulation.

To regulate and develop a code of conduct andfair practices by brokers , merchant bankers witha view to make them competitive andprofessional.


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FUNCTIONS OF SEBI

REGULATORY FUNCTIONS:

Registration of brokers and sub brokers andother players in the market

Registration of collective investment schemesand Mutual Funds

Prohibition of fraudulent and unfair trade

practices Controlling insider trading and takeover bids

and imposing penalties for such practices


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FUNCTIONS OF SEBI

DEVELOPMENT FUNCTIONS:

Investor education

Training of intermediaries Promotion of fair practices and code of conduct of

all SROs

Conducting research and publishing informationuseful to all market participants


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RBI-RESERVE BANK OF INDIA

Central bank is the apex bank in a country. It iscalled by different names in different countries.

RBI was established in the year 1935 under the

reserve bank of India act, 1934. The Central Office of the Reserve Bank was

initially established in Calcutta but waspermanently moved to Mumbai in 1937.

Indiasmonetary authority.

Supervisor of financial system .

Managed by Central Board of Directors.


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PREAMBLE..

The Preamble of the Reserve Bank of India

describes the basic objectives of the Reserve

Bank as "...to regulate the issue of Bank Notesand keeping of reserves with a view to

securing monetary stability in India and

generally to operate the currency and creditsystem of the country to its advantage."


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ROLE OF RBI IN INDIAN

ECONOMY

The Reserve Bank is the umbrella network for numerous activities,

all related to the nations financial sector, encompassing and

extending beyond the functions of a typical central bank. This

section provides an overview of our primary activities:

Provision of finance Promotional activities

Issuer of Currency

Banker and Debt Manager to Government

Banker to Banks Regulator of the Banking System

Manager of Foreign Exchange

Regulator and Supervisor of the Payment and Settlement Systems


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REGULATORY FUNCTIONS OF

RBI

CREDIT CONTROL:

It refers to the regulation by monetary

authority[RBI] of the volume & direction ofcredit of the banking system.

In times of inflation -contraction of credit.

During deflation-expansion of credit.

For price & exchange stability.


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OBJECTIVES OF CREDIT

CONTROL

To stabilize the internal price level.

To stabilize the rate of foreign exchange.

To protect the outflow of gold.

To control business cycles.

To meet business needs. To have growth with stability.


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INSTRUMENTS OF CREDIT

CONTROL

DIRECT INSTRUMENTS:

Cash Reserve Ratio (CRR).

Statutory Liquidity Ratio (SLR).

Refinance facilities.

INDIRECT INSTRUMENTS:

Repo/reverse repo rate.

Bank rate.


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THANK YOU

regulatory institutes sebi and rbi

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