SECURITY EXCHANGE
BOARD OF INDIA
(SEBI)
CERTIFICATE
This is to certify that robin student of class XI B
(commerce) has succesfully completed the
project of financial market management under
the guidence of aarti sharma mam
AKNOWLEDGEMENT
I extend my sincere appreciation to everyone who contributed to the
successful completion of my school fmm project . I am particularly grateful
to my fmm teacher, [AARTI SHARMA ], for their guidance throughout the
project. The completion of this project on the topic of [ SEBI ] was made
possible through the collaboration and support of various individuals.
I sincerely thank our school principal, [NARESH KUMAR], for allowing
me to use the well-equipped and providing all the necessary facilities.
I am thankful to my parents for their unwavering support and guidance
throughout the course of this project. Their encouragement has been the
driving force behind the successful completion of this project.
INDEX
HISTORY
WHAT IS SEBI
OBJECTIVE OF SEBI
FUNCTION OF SEBI
PURPOSE OF SEBI
STRUCTURE OF SEBI
ROLE OF SEBI IN PRIMARY AND SECONDARY MARKET
CONCLUSION
BIBLIOGRAPHY
Controller of Capital Issues was the regulatory authority before
SEBI came into existence;lal it derived authority from the Capital
issues (Control) Act, 1947.
Initially SEBI was a non statutory body without any statutory
power. However in 1995, the SEBI was given additional statutory
power by the Government of India througli an amendment to the
securities and Exchange Board of India Act 1992. In April, 1998
the SEBI was constituted as the regulator of capital market in
India under a resolution of the Government of India
WHAT IS SEBI
SEBI stands for the Securities and Exchange Board of India.
It is a statutory regulatory body established by the Government of India in 1992 to
protect the interests of Investors investing in securities, along with regulating the
securities market.
SEBI's regulatory authority extends to various segments of the financial market,
including stock exchanges, mutual funds, portfolio managers, investment advisers, and
other intermediaries. It plays a pivotal role in monitoring and regulating market
actuensuring compliance with regulations, and taking corrective measures in case of
any violations.
OBJECTIVE OF SEBI
Following are some of the objectives of the SEBI:
1. Investor Protection: This is one of the most important objectives of
setting up SEBI. It involves protecting the interests of investors by
providing guidance and ensuring that the investment done is safe.
2. Preventing the fraudulent practices and malpractices which are related
to trading and regulation of the activities of the stock exchange
3. To develop a code of conduct for the financial intermediaries such as
underwriters, brokers, etc.
4. To maintain a balance between statutory regulations and self
regulation.
FUNCTIONS OF SEBI
SEBI has the following functions
1. Protective Function
2. Regulatory Function
3. Development Function
The following functions will be discussed in detail
Protective Function: The protective function implies the role that SEBI
plays in protecting the investor interest and also that of other financial
participants. The protective function includes the following activities.
a. Prohibits insider trading: Insider trading is the act of buying or selling of the
securities by the insiders of a company, which includes the directors, employees and
promoters. To prevent such trading SEBI has barred the companies to purchase their
own shares from the secondary market.
b. Check price rigging: Price rigging is the act of causing unnatural fluctuations in the
price of securities by either increasing or decreasing the market price of the stocks that
leads to unexpected losses for the investors. SEBI maintains strict watch in order to
prevent such malpractices.
c. Promoting fair practices: SEBI promotes fair trade practice and works towards
prohibiting fraudulent activities related to trading of securities.
d. Financial education provider: SEBI educates the investors by conducting online and
offline sessions that provide information related to market insights and also on money
management.
Regulatory Function: Regulatory functions involve establishment
of rules and regulations for the financial intermediaries along with
corporates that helps in efficient management of the market.
The following are some of the regulatory functions.
a. SEBI has defined the rules and regulations and formed guidelines
and code of conduct that should be followed by the corporates as
well as the financial intermediaries.
b. Regulating the process of taking over of a company.
c. Conducting inquiries and audit of stock exchanges.
d. Regulates the working of stock brokers, merchant brokers.
PURPOSE OF SEBI
The purpose for which SEBI was setup was to provide an environment
that paves the way for mobilsation and allocation of resources.It provides
practices, framework and infrastructure to meet the growing demand.
It meets the needs of the following groups:
1. Issuer: For issuers, SEBI provides a marketplace that can utilised for
raising funds.
2. Investors: It provides protection and supply of accurate information
that is maintained on a regular basis.
3. Intermediaries: It provides a competitive market for the
intermediaries by arranging for proper infrastructure.
ROLE OF SEBI IN PRIMARY AND
SECONDARY MARKET
Primary Market
The primary market is that part of the capital markets that deals with the
issuance of new securities. Companies, governments or public sector
institutions can obtain funding throughthe sale of a new stock or bond
issue. This is typically done through a syndicate of securitiesdealers. The
process of selling new issues to investors is called underwriting. In the case
of anew stock issue, this sale is an initial public offering (IPO). Dealers earn
a commission that is built into the price of the security offering, though it
can be found in the prospectus. Featuresof primary markets are
Secondary Market
Secondary Market refers to a market where securities are traded after
being initially offered tothe public in the primary market and/or listed on the
Stock Exchange. Majority of the tradingis done in the secondary market.
Secondary market comprises of equity markets and the debtmarkets.For the
general investor, the secondary market provides an efficient platform
for trading of hissecurities. For the management of the company, Secondary
equity markets serve as amonitoring and control conduit
—
by facilitating value-
enhancing control activities, enablingimplementation of incentive-
based management contracts, and aggregating information (viaprice
discovery) that guides management decisions.
What Is The Difference Between The Primary Market And Th
eSecondary Market?
Primarily there are two types of stock markets
the primary market and the secondary market. This is true for the Indian stock
markets as well. Basically the primary market is theplace where the shares are
issued for the first time. So when a company is getting listed for thefirst time at the
stock exchange and issuing shares
–
this process is undertaken at the primary market. That means the process of the
Initial Public Offering or IPO and the debentures arecontrolled at the primary stock
market. On the other hand the secondary market is the stock market where existing
stocks are brought and sold by the retail investors
through the brokers.It is the secondary market that controls the
price of the stocks. Generally when we speak aboutinvesting or
trading at the stock market we mean trading at the secondary stock
market. It isthe secondary market where we can invest and trade in
the stocks to get the profit from ourstock market investment.Now
these are the broadest classification of the stock markets that is true
for any country as well as India. But the Indian stock markets can be
divided into further categories depending on various
aspects like the mode of operation and the diversification in services.
First of the twolargest stock exchanges in India can be divided on the
basis of operation. While the Bombay stock exchange or BSE is a
conventional stock exchange with a trading floor and operating
CONCLUSION
I would like to conclude that the themes of this project confirm the
new syllabus of CBSE (2024-2025). So I would like to extend my
gratitude to CBSE board for giving me an opportunity to gain
knowledge from this project as well as to present my creativity. I would
like to give special thanks to our subject teacher as they gave me
minch information about this project. I would also like to thanks my
family members who helped me and encouraged me to submit this
project perfectly. I hope that this would be appreciated by all its
readers and meet all your expectations.
BIBLIOGRAPHY
Wikipedia.com
Youtube.com
Unacademy.com
Google.com
Ncert.com
