Q. 1 : What is Capital Market ?

Explain the structure and constituents of Capita

l Market in India.
Ans. A) CAPITAL MARKET :-
Capital market deals with medium term and long term funds. It refers to all faci
lities and the institutional arrangements for borrowing and lending term funds (
medium term and long term). The demand for long term funds comes from private bu
siness corporations, public corporations and the government. The supply of funds
comes largely from individual and institutional investors, banks and special in
dustrial financial institutions and Government.
B) STRUCTURE I CONSTITUENTS I CLASSIFICATION OF CAPITAL MARKET :-
Capital market is classified in two ways
1) CAPITAL MARKET IN INDIA

Gild Edged Industrial Development Fi
nancial
Market Securities Financial
intermediaries
Market Institutions (DFIs)

a) Gilt - Edged Market :-
Gilt - Edged market refers to the market for government and semi-government secu
rities, which carry fixed rates of interest. RBI plays an important role in this
market.
b) Industrial Securities Market :-
It deals with equities and debentures in which shares and debentures of existing
companies are traded and shares and debentures of new companies are bought and
sold.
c) Development Financial Institutions :-
Development financial institutions were set up to meet the medium and long-term
requirements of industry, trade and agriculture. These are IFCI, ICICI, IDBI, SI
DBI, IRBI, UTI, LIC, GIC etc. All These institutions have been called Public Sec
tor Financial Institutions.
d) Financial Intermediaries :-
Financial Intermediaries include merchant banks, Mutual Fund, Leasing companies
etc. they help in mobilizing savings and supplying funds to capital market.
2) The Second way in which capital market is classified is as follows :-
CAPITAL MARKET IN INDIA
Primary market
Secondary market
a) Primary Market :-
Primary market is the new issue market of shares, preference shares and debentur
es of non-government public limited companies and issue of public sector bonds
.
b) Secondary Market
This refers to old or already issued securities. It is composed of industrial se
curity market or stock exchange market and gilt-edged market.
Q. 2: Explain the role and importance of capital market in India. (Mar. 11) OR
Write note on Importance I Significance of Capital Market in Economic Developmen
t.
Ans. A) ROLE AND IMPORTANCE OF CAPITAL MARKET IN INDIA :-
Capital market has a crucial significance to capital formation. For a speedy eco
nomic development adequate capital formation is necessary. The significance of c
apital market in economic development is explained below :-
Mobilisation Of Savings And Acceleration Of Capital Formation :-
In developing countries like India the importance of capital market is self evid
ent. In this market, various types of securities helps to mobilise savings from
various sectors of population. The twin features of reasonable return and liquid
ity in stock exchange are definite incentives to the people to invest in securit
ies. This accelerates the capital formation in the country.
Raising Long - Term Capital :-
The existence of a stock exchange enables companies to raise permanent capital.
The investors cannot commit their funds for a permanent period but companies req
uire funds permanently. The stock exchange resolves this dash of interests by of
fering an opportunity to investors to buy or sell their securities, while perman
ent capital with the company remains unaffected.
Promotion Of Industrial Growth :-
The stock exchange is a central market through which resources are transferred t
o the industrial sector of the economy. The existence of such an institution enc
ourages people to invest in productive channels. Thus it stimulates industrial g
rowth and economic development of the country by mobilising funds for investment
in the corporate securities.
Ready And Continuous Market :-
The stock exchange provides a central convenient place where buyers and sellers
can easily purchase and sell securities. Easy marketability makes investment in
securities more liquid as compared to other assets.
Technical Assistance :-
An important shortage faced by entrepreneurs in developing countries is technica
l assistance. By offering advisory services relating to preparation of feasibili
ty reports, identifying growth potential and training entrepreneurs in project m
anagement, the financial intermediaries in capital market play an important role
.
Reliable Guide To Performance :-
The capital market serves as a reliable guide to the performance and financial p
osition of corporates, and thereby promotes efficiency.
Proper Channelisation Of Funds :-
The prevailing market price of a security and relative yield are the guiding fac
tors for the people to channelise their funds in a particular company. This ensu
res effective utilisation of funds in the public interest.
Provision Of Variety Of Services :-
The financial institutions functioning in the capital market provide a variety o
f services such as grant of long term and medium term loans to entrepreneurs, pr
ovision of underwriting facilities, assistance in promotion of companies, partic
ipation in equity capital, giving expert advice etc.
Development Of Backward Areas :-
Capital Markets provide funds for projects in backward areas. This facilitates e
conomic development of backward areas. Long term funds are also provided for dev
elopment projects in backward and rural areas.
Foreign Capital :-
Capital markets makes possible to generate foreign capital. Indian firms are abl
e to generate capital funds from overseas markets by way of bonds and other secu
rities. Government has liberalised Foreign Direct Investment (FDI) in the countr
y. This not only brings in foreign capital but also foreign technology which is
important for economic development of the country.
Easy Liquidity :-
With the help of secondary market investors can sell off their holdings and conv
ert them into liquid cash. Commercial banks also allow investors to withdraw the
ir deposits, as and when they are in need of funds.
Revival Of Sick Units :-
The Commercial and Financial Institutions provide timely financial assistance to
viable sick units to overcome their industrial sickness. To help the weak units
to overcome their financial industrial sickness banks and FIs may write off a p
art of their loan.
Q. 3: Discuss / Explain the growth of Capital Market in India.
Ans. A) GROWTH OF CAPITAL MARKET IN INDIA:-
GROWTH OF CAPITAL MARKET
End of December
1975-76
2004-05
i) Stock Exchanges (No.)
8
23
ii) Market Value of Capital ( in Crore)
3,273
16,98,428
iii) Capital Issues (Rs. in Crore)
98
60,502
iv) Capital raised as % of gross domestic
saying(%)
0.7
7.0
Source: - Tata Services Ltd., statistiscal outline of India 2005-06.
After Independence capital market has shown a remarkable progress. The first org
anised stock exchange was established in India at Bombay in 1887. When the Secur
ities Contracts (Regulation) Act 1956 was passed, only 7 Stock exchanges Viz. Mu
mbai, Ahmedabad, Kolkata, Chennai, Delhi, Hyderabad and Indore, received recogni
tion. By end of March 2004, the number of stock exchanges increased to 23.
1) Primary I New Issues Market :-
After liberalisation policy of 1991 and the abolition of capital issues control
with effect from May 29,1992, the primary market got a tremendous , boost. This
can be seen from following points :-
a) New Capital Issues by Private Sector :-
The number of new capital issues by private sector was only 364 in 1990-91 and t
he amount raised by them was `.4,312 crore. The number of new capital issues ros
e to 1,678 in 1994-95 and the amount raised by them was `. 26,418 crore. Since 1
995 the capital market was sluggish and the resources raised fell to `.. 10,409
crores in 1996-97. In 2003-04, the amount raised from new capital issues was onl
y `.3,210 crores. In 2004 it increased again to `.33,475 crore and in 2005 `.30,
325 crore of resources were raised on this market. The primary issues of debt se
curities felt a low of around `. 66 crore in 2005.
b)Public Sector Bonds :-
The resources raised by issuing bonds by Public Sector undertakings rose from `.
354 crores in 1985-86 to 7,491 crore in 2004-05.
c) Mutual Funds :-
In 1997-98, the total number of mutual funds in the country was 34.
In 1997-98, the mutual funds were able to mobilise `.4,064 crore. In 1999-2000 m
utual funds mobilised a record of `.22,117 crore. There was a massive resource m
obilisation of `..41,570 crore by private sector mutual funds in 2003-04, pushin
g up the total resource mobilisation by all mutual funds to as high as `.47,873
crore. In 2004-05, resource mobilisation once again declined to `.3,015 crore.
2) Secondary Market :-
a) Industrial Securities Market :-
In 1991-92, there was an huge rise in the share prices. The RBI All India Index
Number of Ordinary Share Prices rose to 1,485.4 in 1991-92 (base year 1980-81),
showing a gain of 181.4%. In 1992-93 due to irregularities the Stock Market decl
ined. The years 1993 and 1994 saw increased activity in stock market due to :- B
etter performance of companies, Improvement in Balance of Payment position, Incr
easing investment by Foreign Institutional investors etc.
India enjoys 2nd.largest investor population in the world next to U.S.A.
b) Bombay Stock Exchange (BSE) :-
The scrip movements In Bombay Stock Exchange reflected the same trend as the RBI
index (BSE sensitive index with base 1978-79 = 100). Market capitalisation of B
ombay Stock Exchange was `.12, 01,207 crore in 2003-04. It rose to `.30, 66,076
crore in 2008-09.
c) National Stock Exchange (NSE) :-
The NSE of India was set up in 1992 and started its operations in 1994. It provi
des facility for trading of equity investments, warrants, debentures, preference
shares etc. The market capitalisation of NSE reached to `.28, 96,194 crore in 2
008-09.
d) Over The Counter Of Exchange Of India :-
It was set in August 1989 and started .operating since 1992.
e) Financial Intermediaries :-
Financial Intermediaries are the latest trend in Indian Capital Market. They hav
e to play an important role in field of venture capital, credit rating etc.

Q. 4: Explain the factors contributing I responsible for the growth and developm
ent of Capital Market in India.
Ans. A) FACTORS CONTRIBUTING TO THE GROWTH AND DEVELOPMENT OF CAPITAL MARKET :-
1) Growth Of Development Banks And Financial Institutions :-
For providing long term funds to industry, the government set up Industrial Fina
nce Corporation in India (IFCI) in 1948. This was followed by a number of other
development banks and institutions like the Industrial Credit and Investment Cor
poration of India (ICICI) in 1955, Industrial Development Bank of India (IDBI) i
n 1964, Industrial Reconstruction Corporation of India (IRCI) in 1971, Foreign I
nvestment Promotion Board in 1991, Over the Counter Exchange of India (OTCEI) in
1992 etc. In 1969, 14 major commercial banks were nationalised. Another 6 banks
were nationalised in 1980. These financial institutions and banks have contribu
ted in widening and strengthening of capital market in India.
2) Setting Up Of SEBI :-
The Securities Exchange Board of India (SEBI) was set up in 1988 and was given s
tatutory recognition in 1992.
3) Credit Rating Agencies :-
Credit rating agencies provide guidance to investors / creditors for determining
the credit risk. The Credit Rating Information Services of India Limited (CRISI
L) was set up in 1988 and Investment Information and Credit Rating Agency of Ind
ia Ltd. (ICRA) was set up in 1991. These agencies are likely to help the develop
ment of capital market in future.
4) Growth Of Mutual Funds :-
The mutual funds collects funds from public and other investors and channelise t
hem into corporate investment in the primary and secondary markets. The first mu
tual fund to be set up in India was Unit Trust of India in 1964. In 2007-08 reso
urces mobilised by mutual funds were Rs. 1,53,802 crores.
5) Increasing Awareness :-
During the last few years there have been increasing awareness of investment opp
ortunities among the public. Business newspapers and financial journals (The Eco
nomic Times, The Financial Express, Business India, Money etc.) have made the pe
ople aware of new long-term investment opportunities in the security market.
6) Growing Public Confidence
A large number of big corporations have shown impressive growth. This has helped
in building up the confidence of the public. The small investors who were not i
nterested to buy securities from the market are now showing preference in favour
of shares and debentures. As a result, public issues of most of the good compan
ies are now over-subscribed many times.
7) Legislative Measures :-
The government passed the companies Act in 1956. The Act gave powers to governme
nt to control and direct the development of the corporate enterprises in the cou
ntry. The capital Issues (control) Act was passed in 1947 to regulate investment
in different enterprises, prevent diversion of funds to non-essential activitie
s and to protect the interest of investors. The Act was replaced in 1992.
8) Growth Of Underwriting Business :-
The growing underwriting business has contributed significantly to the developme
nt of capital market.
9) Development Of Venture Capital Funds :-
Venture capital represents financial investment in highly risky projects with a
hope of earning high returns After 1991, economic liberalisation has made possib
le to provide medium and long term funds to those firms, which find it difficult
to raise funds from primary markets and by way of loans from FIs and banks.
10) Growth Of Multinationals (MNCs) :-
The MNCs require medium and long term funds for setting up new projects or for e
xpansion and modernisation. For this purpose, MNCs raise funds through loans fro
m banks and FIs. Due to the presence of MNCs, the capital market get a boost.
11) Growth Of Entrepreneurs :-
Since 1980s, there has been a remarkable growth in the number of entrepreneurs.
This created more demand for short term and long term funds. FIs, banks and stoc
k markets enable the entrepreneurs to raise the required funds. This has led to
the growth of capital market in India.
12) Growth Of Merchant Banking :-
The credit for initiating merchant banking services in India goes to Grindlays B
ank in 1967,followed by Citibank in 1970. Apart from capital issue management, m
erchant banking divisions provide a number of other services including provision
of consultancy services relating to promotion of projects, corporate restructur
ing etc.


Q.5: Explain the recent reforms introduced in Indian Capital Market. o
r
What measures have been initiated by Government of India to
strengthen the capital market ?
Ans. A) REFORMS I DEVELOPMENTS IN CAPITAL MARKET SINCE 1991:-
The government has taken several measures to develop capital market in post-refo
rm period, with which the capital market reached new heights. Some of the import
ant measures are
1) Securities And Exchange Board Of India (SEBI) :-
SEBI became operational since 1992. It was set with necessary powers to regulate
the activities connected with marketing of securities and investments in the st
ock exchanges, merchant banking, portfolio management, stock brokers and others
in India. The objective of SEBI is to protect the interest of investors in prima
ry and secondary stock markets in the country.
2) National Stock Exchange (NSE) :-
The setting up to NSE is a landmark in Indian capital markets. At present, NSE i
s the largest stock market in the country. Trading on NSE can be done throughout
the country through the network of satellite terminals. NSE has introduced inte
r-regional clearing facilities.
3) Dematerialisation Of Shares :-
Demat of shares has been introduced in all the shares traded on the secondary st
ock markets as well as those issued to the public in the primary markets. Even b
onds
and debentures are allowed in demat form. The advantage of demat trade is that i
t involves
Paperless trading.
4) Screen Based Trading :-
The Indian stock exchanges were modernised in 90s, with Computerised Screen Base
d Trading System (SBTS), It cuts down time, cost, risk of error and fraud and th
ere by leads to improved operational efficiency. The trading system also provide
s complete online market information through various inquiry facilities.
5) Investor Protection :-
The Central Government notified the establishment of Investor Education and Prot
ection Fund (IEPF) with effect from 1st Oct. 2001: The IEPF shall be credited wi
th amounts in unpaid dividend accounts of companies, application moneys received
by companies for allotment of any securities and due for refund, matured deposi
ts and debentures with companies and interest accrued there on, if they have rem
ained unclaimed and unpaid for a period of seven years from the due date of paym
ent. The IEPF will be utilised for promotion of awareness amongst investors and
protection of their interests.
6) Rolling Settlement :-
Rolling settlement is an important measure to enhance the efficiency and integri
ty of the securities market. Under rolling settlement all trades executed on a t
rading day (T) are settled after certain days (N). This is called T + N rolling
settlement. Since April 1, 2002 trades are settled' under T + 3 rolling settleme
nt. In April 2003, the trading cycle has been reduced to T + 2 days. The shorten
ing of trading cycle has reduced undue speculation on stock markets.
?
7) The Clearing Corporation Of India Limited (CCIL) :-
The CCIL was registered in 2001, under the Companies Act, 1956 with the State Ba
nk of India as the Chief Promoter. The CCIL clears all transactions in governmen
t securities and repos and also Rupee / US $ forex spot and forward deals All tr
ades in government securities below Rs. 20 crores would be mandatorily settled t
hrough CCIL, white those above Rs. 20 crores would have the option for settlemen
t through the RBI or CCIL.
8) The National Securities Clearing Corporation Limited (NSCL) :-
The NSCL was set up in 1996. It has started guaranteeing all trades in NSE since
July 1996. The NSCL is responsible for post-trade activities of NSE. It has put
in place a comprehensive risk management system, which is constantly monitored
and upgraded to pre-expect market failures.
9) Trading In Central Government Securities :-
In order to encourage wider participation of all classes of investors, Including
retail investors, across the country, trading in government securities has been
introduced from January 2003. Trading in government securities can be carried o
ut through a nation wide, anonymous, order-driver, screen-based trading system o
f stock exchanges in the same way in which trading takes place in equities.
10) Credit Rating Agencies :-
Various credit rating agencies such as Credit Rating Information services of Ind
ia Ltd. (CRISIL 1988), Investment Information and credit Rating Agency of India
Ltd. (ICRA 1991), etc. were set up to meet the emerging needs of capital market.
They also help merchant bankers, brokers, regulatory authorities, etc. in disch
arging their functions related to debt issues.
11) Accessing Global Funds Market :-
Indian companies are allowed to access global finance market and benefit from th
e lower cost of funds. They have been permitted to raise resources through issue
of American Depository Receipts (ADRs), Global Depository Receipts (GDRs), Fore
ign Currency Convertible Bonds (FCCBs) and External Commercial Borrowings (ECBs)
. Further Indian financial system is opened up for investments of foreign funds
through Non-Resident Indians (NRIs), Foreign Institutional investors (FIls), and
Overseas Corporate Bodies (OCBs).
12) Mutual Funds :-
Mutual Funds are an important avenue through which households participate in the
securities market. As an investment intermediary, mutual funds offer a variety
of services / advantages to small investors. SEBI has the authority to lay down
guidelines and supervise and regulate the working of mutual funds.
13) Internet Trading :-
Trading on stock exchanges is allowed through internet, investors can place orde
rs with registered stock brokers through internet. This enables the stock broker
s to execute the orders at a greater pace.
14) Buy Back Of Shares :-
Since 1999, companies are allowed to buy back of shares. Through buy back, promo
ters reduce the floating equity stock in market. Buy back of shares help compani
es to overcome the problem of hostile takeover by rival firms and others.
15) Derivatives Trading :-
Derivatives trading in equities started in June 2000. At present, there are four
equity derivative products in India Stock Futures, Stock Options, Index Futures
, Index Options.
Derivative trading is permitted on two stock exchanges in India i.e. NSE and BSE
. At present in India, derivatives market turnover is more than cash market.
16) PAN Made Mandatory :-
In order to strengthen the Know your client" norms and to have sound audit trail
of transactions in securities market, PAN has been made mandatory with effect fr
om January 1, 2007.
Q.6: Explain the role of SEBI in developing capital market. OR
Evaluate the role and performance of SEBI. OR
Write note on SEBI. (Mar. 11).
Ans. A. SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI) :-
SEBI was established as a non-statutory board in 1988 and in January 1992 it was
made a Statutory body. The main objectives of SEBI are
1) To protect the interest of investors.
2) To bring professionalism in the working of intermediaries in capital marke
ts (brokers, mutual funds, stock exchanges, demat depositories etc.).
3) To create a good financial climate, so that companies can raise long term
funds through issue of securities (shares and debentures).
In 2002, SEBI is further empowered to do the following:-
1. To file complaints in courts and to notify its regulations without prior a
pproval of government.
2. To regulate issue of capital and transfer of securities.
3. To impose monetary penalties on various intermediaries and other participa
nts for a specified range of violations.
4. To issue direction to and to call for documents from all intermediaries.
B.
ROLE I POWERS AND FUNCTIONS OF SEBI :-
1. Protection Of Investor's Interest :-
SEBI frames rules and regulations to protect the interest of investors.
It monitors whether the rules and regulations are being followed by the concerne
d parties i.e., issuing companies, mutual funds, brokers and others. It handles
investor grievances or complaints against brokers, securities issuing companies
and others.
2. Restriction On Insider Trading :-
SEBI restricts insider trading activity. It prohibits dealing, communication or
counselling on matters relating to insider trading. SEBIs regulation states that
no insider (connected with the company) shall - either on his own behalf or on b
ehalf of any other person, deal in securities of a company listed on any stock e
xchange on the basis of any unpublished price sensitive information.
3. Regulates Stock Brokers Activities :-
SEBI has also laid down regulations in respect of brokers and sub-broker. No bro
kers or sub-broker can buy, sell or deal in securities without being a registere
d member of SEBI. It has also made compulsory for brokers to maintain separate a
ccounts for their clients and for themselves. They must also have their books au
dited and audit reports filed with SEBI.
4. Regulates Merchant Banking :-
SEBI has laid down regulations in respect of merchant banking activities in Indi
a. The regulations are in respect of registration, code of conduct to be followe
d, submission of half-yearly results and so on
5. Dematerialisation Of Shares :-
Demat of shares has been introduced in all the shares traded on secondary stock
markets as well as those issued to public in prirriary markets. Even bonds and d
ebentures are allowed in demat form.
6. Guidelines On Capital Issues :-
SEBI has framed necessary guidelines in connection with capital issues. The guid
elines are applicable to :- First Public Issue of New Companies, First Public Is
sue by Existing Private / Closely held Companies, Public Issue by Existing Liste
d Companies.
7. Regulates Working Of Mutual Funds :-
SEBI regulates the working of mutual funds. SEBI has laid down rules and regulat
ions that are to be followed by mutual funds. SEBI may cancel the registration o
f a mutual fund, if it fails to comply with the regulations.
8. Monitoring Of Stock Exchanges:-
To improve the working of stock markets, SEBI plays an important role in monitor
ing stock exchanges. Every recognised stock exchange has to furnish to SEBI annu
ally with a report about its activities during the previous year.
9. Secondary Market Policy :-
SEBI is responsible for all policy and regulatory issues for secondary market an
d new investments products. It is responsible for registration and monitoring of
members of stock exchanges, administration of some of stock exchanges and monit
oring of price movements and insider trading.
10. Investors Grievances Redressal :-
SEBI has introduced an automated complaints handling system to deal with investo
r complaints. It assist investors who want to make complaints to SEBI against li
sted companies.
11. Institutional Investment Policy :-
SEBI looks after institutional investment policy with respect to domestic mutual
funds and Foreign Institutional Investors (FIIs). It also looks after registrat
ion, regulation and monitoring of FIls and domestic mutual funds.
12. Takeovers And Mergers :-
To protect the interest of investors in case of takeovers and mergers SEBI has i
ssued a set of guidelines. These guidelines are to be followed by corporations a
t the time of takeovers and mergers.
13. Reforms In Capital Market :-
SEBI has introduced many reforms in Capital Market. Some of them are :-
a) Demat of shares
b) PAN made compulsory.
c) Buy back of shares allowed.
d) Corporate Governance introduced
e) Transparency rules in Brokers Transactions.
14. Other Functions :-
a) It promotes investors education, and also training of intermediaries in secur
ities market.
b) It performs functions and exercise powers under provisions of Capital Issues
(Control) Act 1947, Securities Contracts Act 1956 etc.
c) It promotes and regulates self-regulatory organisations.
d) It prohibits fraudulent and unfair trade practices in securities Market
e) It promotes investors education and training in securities market.
B) APPRAISAL OF SEBI'S WORK :-
1) Large Number Of Rules :-
There are large .number of rules prescribed by SEBI. These have also been changi
ng from time to time. This has created a high level of uncertainty and confusion
. It is very difficult to determine what rules are currently in operation.
2) Less Protection To Small Investors :-
SEBI is not really serious about reforming the system and protecting the individ
ual and small investors. It has failed to penalise the people responsible for ca
using abnormal price fluctuations on stock market.
3) False Claim On High Success Rate :-
SEBIs Annual Report, in 1995-96 claims, a very high success rale in resolving inv
estor complaints. But in reality it is not so.
4) Insufficient Power :-
SEBI has often complained of having insufficient authority and power. It should
become more effective, efficient, socially-accountable and small - investor - fr
iendly.
working is quite good. Liquidity in market has improved various segments have al
so become interlinked. It provides a world class trading and settlement system.
5) Corporate Friendly regulation :-
The regulatory ineffectiveness of SEBI in certain areas has been due to its conc
entration on symptoms rather than the root causes.
Q. 7 : Explain policy measures introduced by SEBI?
Ans. A) POLICY MEASURES BY SEBI :-
1) Entry Norms :-
SEBI has issued various guidelines for tightening the entry norms for companies
accessing capital market.
2) Norms For Share Transfer :-
SEBI has tightened the norms for transfer of shares among group companies and ta
keover of companies.
3) Penal Margins :-
SEBI has introduced imposition of penal margin on net undelivered portion at the
end of settlement.
4) Screen Based Trading :-
SEBI allowed stock exchanges to expand their online screen based trading termina
ls to-locations outside their jurisdiction subject to conditions.
5) Intermediaries :-
SEBI registers and regulates the working of stock brokers, sub-brokers, share tr
ansfer agents, trustee of trust funds, registrars to an issue, merchant banks, u
nderwriters and other intermediaries who may be associated with securities marke
t.
6) Prohibition Of Fraudulent And Unfair Practices :-
SEBI regulates prohibition of Fraudulent and unfair trade practices which have i
mposed prohibition against market manipulators and unfair practices relating to
securities.
7) Steps To Improve Corporate Governance :-
Sufficient disclosures are made mandatory for companies at the stage of public i
ssue. Listed companies are required to make disclosures on continuing basis on d
ividend, bonus etc.
8) Comprehensive Risk Management And Improvement In Disclosure :-
In July 2002, SEB| set up a system EDIFAR (Electronic Data Information Filing An
d Retrieval) through which firms would electronically file mandatory disclosures
to SEBI and these documents would be available to individuals across the countr
y over the Internet, with a near-zero delay.
9) Raising Funds From Abroad :-
Indian companies are allowed to raise funds from abroad, through American / Glob
al Depository Receipts, Foreign Currency Convertible Bonds.and External Commerci
al Borrowings.
10) Norms For Custodian Of Securities And Depositories :-
SEBI notified two regulations namely, Custodian of Securities Regulation, and De
positories and Participant Regulations.