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Chronology of Major Policy Initiatives by Sebi

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Chronology of Major Policy Initiatives by Sebi This Report is in conformity with the format as per the Securities and Exchange Board of India (Annual Report) Rules, 1994, notified in Official Gazette on April 7, 1994. 1 3 MEMBERS OF THE BOARD (As on March 31, 2010) C B BHAVE CHAIRMAN Members appointed under Section 4(1)(d) of the SEBI Act, 1992 (15 of 1992) M S SAHOO WHOLE TIME MEMBER K M ABRAHAM WHOLE TIME MEMBER PRASHANT SARAN WHOLE TIME MEMBER G MOHAN GOPAL Director National Judicial Academy Bhopal T V MOHANDAS PAI Director Infosys Technologies Limited Bangalore Members nominated under Section 4(1)(b) of the SEBI Act, 1992 (15 of 1992) R BANDYOPADHYAY Secretary Ministry of Corporate Affairs Government of India K P KRISHNAN Joint Secretary Ministry of Finance Department of Economic Affairs Government of India Member nominated under Section 4(1)(c) of the SEBI Act, 1992 (15 of 1992) USHA THORAT Deputy Governor Reserve Bank of India 5 MEMBERS OF THE SEBI BOARD (As on March 31, 2010) C B BHAVE Chairman M S SAHOO K M ABRAHAM PRASHANT SARAN G MOHAN GOPAL Whole Time Whole Time Whole Time Director Member Member Member National Judicial Academy Bhopal T V MOHANDAS PAI R BANDYOPADHYAY K P KRISHNAN USHA THORAT Director Secretary Joint Secretary Deputy Governor Infosys Technologies Ministry of Corporate Ministry of Finance Reserve Bank of India Limited Affairs Department of Economic Bangalore Government of India Affairs 7 Government of India CHAIRMAN, WHOLE TIME MEMBERS AND EXECUTIVE DIRECTORS Left to Right : Sitting : Dr. K.M. Abraham, Whole Time Member, Shri C.B. Bhave, Chairman, Shri M.S. Sahoo, Whole Time Member, Shri Prashant Saran, Whole Time Member. Standing : Dr. K.N. Vaidyanathan, Executive Director, Shri Ananta Barua, Executive Director, Dr. Pradnya Saravade, Executive Director, Smt. Usha Narayanan, Executive Director, Shri J. Ranganayakulu, Executive Director, Shri J.N. Gupta, Executive Director, Shri P.K. Nagpal, Executive Director. 9 CONTENTS Page No. List of Tables ..................................................................................................................................... vi List of Charts .................................................................................................................................... x List of Boxes ...................................................................................................................................... xi List of Abbreviations ....................................................................................................................... xii PART ONE: POLICIES AND PROGRAMMES 1. GENERAL MACRO-ECONOMIC ENVIRONMENT .................................................... 1 2. REVIEW OF POLICIES AND PROGRAMMES ............................................................. 6 I. Primary Securities Market .......................................................................................... 7 II. Secondary Securities Market ...................................................................................... 12 III. Corporate Debt Market ............................................................................................... 21 IV. Mutual Funds................................................................................................................ 21 V. Portfolio Managers ....................................................................................................... 26 VI. Foreign Institutional Investors ................................................................................... 27 VII. Takeovers ....................................................................................................................... 28 VIII. Delisting ......................................................................................................................... 29 IX. Investor Assistance and Education ........................................................................... 29 X. Retrospect and Prospects ............................................................................................ 36 PART TWO: REVIEW OF TRENDS AND OPERATIONS 1. PRIMARY SECURITIES MARKET .................................................................................... 38 I. Resource Mobilisation ................................................................................................. 38 II. Sector-wise Resource Mobilisation ............................................................................ 40 III. Size-wise Resource Mobilisation ............................................................................... 41 IV. Industry-wise Resource Mobilisation ....................................................................... 43 2. SECONDARY SECURITIES MARKET .................................................................. 44 I. Equity Market in India ................................................................................................ 44 II. Performance of Sectoral Indices ................................................................................. 46 III. Turnover in the Indian Stock Market ....................................................................... 49 i CONTENTS Page No. IV. Market Capitalisation .................................................................................................. 50 V. Stock Market Indicators .............................................................................................. 51 VI. Volatility in Stock Markets ......................................................................................... 54 VII. Trading Frequency ....................................................................................................... 56 VIII. Activities of Stock Exchanges ..................................................................................... 59 IX. Dematerialisation ......................................................................................................... 60 X. Derivatives Market in India........................................................................................ 62 3. TRENDS IN THE BOND MARKET .................................................................................. 73 I. Corporate Bond Market .............................................................................................. 73 II. Wholesale Debt Market ............................................................................................... 75 4. MUTUAL FUNDS .................................................................................................................. 76 5. FOREIGN INSTITUTIONAL INVESTMENT ................................................................. 81 PART THREE: REGULATION OF SECURITIES MARKET 1. INTERMEDIARIES ............................................................................................................... 86 I. Streamlining the Registration Process of Intermediaries ...................................... 86 II. Registered Intermediaries other than Stock Brokers and Sub-brokers ............... 86 III. Registration of Stock Brokers ..................................................................................... 86 IV. Registration of Sub-brokers ........................................................................................ 90 V. Recognition of Stock Exchanges ................................................................................ 90 VI. Registration of Foreign Institutional Investors and Custodians of Securities ... 92 VII. Registration of Collective Investment Schemes ...................................................... 93 VIII. Registration of Mutual Funds .................................................................................... 93 IX. Registration of Venture Capital Funds ..................................................................... 93 X. Fees and Other Charges .............................................................................................. 94 2. CORPORATE RESTRUCTURING ..................................................................................... 95 I. Substantial Acquisition of Shares and Takeovers ................................................... 95 II. Buyback .......................................................................................................................... 95 ii CONTENTS Page No. 3. SUPERVISION ....................................................................................................................... 96 I. Inspection of Market Intermediaries ........................................................................ 96 II. Inspection of Stock Exchanges ................................................................................... 97 III. Follow-up Inspection Reports.................................................................................... 98 4. SURVEILLANCE .................................................................................................................... 98 I. Mechanism of Market Surveillance .......................................................................... 98 II. Surveillance Actions .................................................................................................... 99 III. Surveillance Measures ................................................................................................. 99 IV. Significant Market Movements during 2009-10 ...................................................... 99 V. Integrated Market Surveillance System ................................................................... 100 VI. Data Warehousing and Business Intelligence System
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