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SEBI Reforms in Indian Capital Markets

The document summarizes reforms to India's secondary markets and capital markets. It discusses how SEBI began regulating intermediaries like merchant bankers and mutual funds after being granted legal powers in 1992. It also outlines reforms to India's insurance sector including the establishment of IRDA in 2000 which opened the sector to private companies. Additionally, it notes the establishment of the Multi Commodity Exchange and Investor Education and Protection Fund to encourage commodity trading and protect small investors.

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Abilash Suresan
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5 views1 page

SEBI Reforms in Indian Capital Markets

The document summarizes reforms to India's secondary markets and capital markets. It discusses how SEBI began regulating intermediaries like merchant bankers and mutual funds after being granted legal powers in 1992. It also outlines reforms to India's insurance sector including the establishment of IRDA in 2000 which opened the sector to private companies. Additionally, it notes the establishment of the Multi Commodity Exchange and Investor Education and Protection Fund to encourage commodity trading and protect small investors.

Uploaded by

Abilash Suresan
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd

SEBI Reforms of the Secondary Markets As soon as the SEBI Act was passed in April 1992, the SEBI

has swung into action for regulating the intermediaries in the stock market. Before the legal powders were given to the SEBI, it had already started regulating the merchant bankers and mutual funds by registering and licensing them and later through a code of conduct to be observed by them. With the legal powders bestowed on it, later on it had asked all the exiting stockbrokers and sub-brokers of exchange to register with the SEBI. Despite initial opposition, this task of registration was completed in 1992 only.

Recent Development of Capital Markets


Insurance Sector Reforms: Indian insurance sector has also witnessed massive reforms in last few years. The Insurance Regulatory and Development Authority (IRDA) was setup in [Link] paved the entry of the private insurance firms in India. As many insurance companies invest their money in the capital market, it has expanded.

Commodity Trading: Along with the trading of ordinary securities, the trading in commodities is also recently encouraged. The Multi Commodity Exchange (MCX) is set [Link] Indias No 1 commodity exchange, is a state-of-the-art electronic commodity futures exchange. The Exchange has permanent recognition from the Government of India to facilitate online trading, and clearing and settlement operations for commodity futures across the country. Investor's Protection: Under the purview of the SEBI the Central Government of India has set up the Investors Education and Protection Fund (IEPF) in [Link] works in educating and guiding investors. It tries to protect the interest of the small investors from frauds and malpractices in the capital market. CONCLUSION Different trends have led the growth of capital market and would continue to play their part. There are significant opportunities for productive and prudent financial innovation in India for capital market There remains scope for development of insurance exchanges, credit reinsurance market, freight derivatives, inflation derivatives etc yet like other emerging market, Indian market is also evolving and maturing.

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