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BGyan - Role of regulators and SEBI in Capital Markets |
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On 25th July 2007, the management students at NITIE were proud to have Mr. Piyoosh Gupta, General Manager of SEBI enlightening on the regulatory functions of SEBI. Mr. Gupta was delivering the lecture as a part of BGyan lecture series. BGyan is a corporate lecture series organised at NITIE with a vision to provide practical insight of corporate environment to management students.
SEBI, Securities Exchange Board Of India, the word itself reminds you of one of the most stringent regulatory body accepted worldwide. Truly, SEBI has maintained its charisma not only among large corporations but also small investors. And imagine the impact one would have listening about the overall functioning details of this regulatory body from the horse’s mouth.
Mr. Gupta began with the need for the regulatory body and the Genesis of SEBI. He also threw some light on the control legislations prior to SEBI and the current enhanced powers of SEBI after SEBI Act, 1992. According to him, SEBI regulates the capital market in a number of ways. It starts with company registrations by adhering to certain eligibility norms, issues operational guidelines/ code of conduct, circulars to be followed, etc. At the same time, it also expects the company to submit its detailed information, inspects the records and undertakes some disciplinary actions if the rules are not strictly adhered to.
Mr. Gupta then focussed on the major initiatives taken by SEBI which had made it one of the largest regulatory body having an average turnover of more than 55,000 crore rupees. These include introduction of Demat accounts in the Indian capital market unlike USA which still follows immobilisation model, simplification of issue procedures to reduce issue costs and time and others. Mr. Gupta also spoke about the advantages of Demat account which involves elimination of risks of bad delivery and signature mismatch.
Mr. Gupta then spoke on the major developments in the Secondary markets due to the efforts taken by SEBI. He elaborated on the acronym SECTOR development which stands for developments in Safety, Efficiency, Capacity/ Cost, Trading time, Organisation, Research. He finally touched on clearing corporations in India and concepts like Straight Through Processing and reduction of trade time from t+20/30 to t+2 days which is better than America by one day.
Finally Mr. Gupta satisfied the students inquisitiveness by addressing all their queries in sufficient depth. Thus it was indeed an enriching experience for the management students at NITIE who thanked Mr. Gupta for enlightening them and adding to their financial knowledge.
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