Tamilnadu Samacheer Kalvi 12th Commerce Notes Chapter 8 Securities Exchange Board of India (SEBI) Notes
→ Securities and exchange board of India (SEBI) is an apex body that maintains and regulates our capital market.
→ SEBI was first established in the year 1988.
→ It was made as an autonomous body by The Government of India on 12 May 1992.
→ SEBI has its headquarters at the business district of BandraKurla Complex in Mumbai, and has Northern, Eastern, Southern and Western Regional Offices in New Delhi, Kolkata, Chennai and Ahmedabad respectively.
→ Regulation of Stock Exchange, protection to the investors, checking the insider trading, ahd control over brokers are the objectives of SEBI.
→ Safeguarding the interests of investors, Regulating and controlling the stock markets, Inspection and inquiries of stock exchanges, registering and controlling of stock brokers are the important functions of SEBI.
→ SEBI has wide powers regarding the stock exchanges and intermediaries dealing in securities.
→ For effective regulation of stock exchange, the Ministry of Finance issued a Notification on 13 September, 1994 delegating several of its powers under the Securities Contracts (Regulations) Act to SEBI.
→ Dematerialisation is the process by which physical share certificates of an investor are taken back by the company.
→ Purchases made by an investor are credited to his account and sales are debited.
→ Trading in dematerialized shares commenced on the NSE in December 1996 where Reliance Industries was the first company to trade its 100 shares in demat form.
→ Like the bank account, a demat account holds the certificates of financial instruments like shares, bonds, government securities, mutual funds and exchange traded funds (ETFs).
→ PAN, or permanent account number, is a unique 10-digit alphanumeric identity allotted to each taxpayer by the Income Tax Department.