DOCSLIB.ORG

Industry Overview

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Industry Overview INDUSTRY OVERVIEW Stock exchanges to some extent play an important role as indicators, reflecting the performance of the country‟s economic state of health. Stock market is a place where securities are bought and sold. It is exposed to a high degree of volatility; prices fluctuate within minutes and are determined by the demand and supply of stocks at a given time. Stock brokers are the ones who buy and sell securities on behalf of individuals and institutions for some commission. The Securities and Exchange Board of India (SEBI) is the authorized body, which regulates the operations of stock exchanges, banks and other financial institutions. The past performances in the capital markets especially the securities scam by „Harshad Mehta‟ has led to tightening of the operations by SEBI. In addition the international trading and investment exposure has made it imperative to better operational efficiency. With the view to improve, discipline and bring greater transparency in this sector, constant efforts are being made and to a certain extent improvements have been made. Sharekhan Limited Page 1 HISTORY HISTORY OF THE STOCK BROKING INDUSTRY Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 years ago. The earliest records of security dealings in India are meager and obscure. By 1830's business on corporate stocks and shares in Bank and Cotton presses took place in Bombay. Though the trading list was broader in 1839, there were only half a dozen brokers recognized by banks and merchants during 1840 and 1850. The 1850's witnessed a rapid development of commercial enterprise and brokerage business attracted many men into the field and by 1860 the number of brokers increased into 60. In 1860-61 the American Civil War broke out and cotton supply from United States of Europe was stopped; thus, the 'Share Mania' in India begun. The number of brokers increased to about 200 to 250. However, at the end of the American Civil War, in 1865, a disastrous slump began (for example, Bank of Bombay Share which had touched Rs 2850 could only be sold at Rs. 87). At the end of the American Civil War, the brokers who thrived out of Civil War in 1874, found a place in a street (now appropriately called as Dalal Street) where they would conveniently assemble and transact business. In 1887, they formally established in Bombay, the "Native Share and Stock Brokers' Association" (which is alternatively known as "The Stock Exchange"). In 1895, the Stock Exchange acquired a premise in the same street and it was inaugurated in 1899. Thus, the Stock Exchange at Bombay was consolidated. Sharekhan Limited Page 2 ABOUT SHAREKHAN COMPANY INTRODUCTION Sharekhan is stock broking company. Share Khan comes under retail arm of SSKI (Shripal Sevantilal Kantilal Ishwarlal) investors Services Pvt. Ltd. offers World-class facilities for buying and selling Shares on BSE and NSE, Demate Services (DP) Derivatives (F&O). SSKI group also comprises of Institutional broking and Corporate Finance. Sharekhan does not claim expertise in too many things. Sharekhan's expertise lies in stocks and that's what he talks about with authority. So when he says that investing in stocks should not be confused with trading in stocks or a portfolio-based strategy is better than betting on a single horse, it is something that is spoken with years of focused learning and experience in the stock markets. And these beliefs are reflected in everything Sharekhan does for you! Those of you who feel comfortable dealing with a human being and would rather visit a brick-and-mortar outlet than talk to a PC, you'd be glad to know that Sharekhan offers you the facility to visit (or talk to) any of our share shops across the country. In fact Sharekhan runs India's largest chain of share shops with over hundred outlets in more than 80 cities! What's a share shop? How do you locate a share shop in your city? Sharekhan is 80 years old company which is started online in the year 2000 & it is the first company who started online in 1984 they ventured into institutional broking& corporate finance. They have 14 branches, 400 franchises also having 466 shops in 210 cities. In Rajkot branch daily dealing Rs.16 crore & 400 crore daily dealing all over India. Almost 4000 employees and 100000 trading customers SSKI named its online division as SHARE KHAN and it is into retail Broking Sharekhan Limited Page 3 The business of the company overhauled 4 years ago on February 8, 2000. It acts as a discount brokerage house to a full service investment solutions provider It has a 150 member strong team. It has specialized research product for the small investors and day traders Largest chain of share shops, 103 Franchisees & 17 Branches across India. It has $25m/trades every day. Leading player today with 20% market share Over 8000 online clients The site was also launched on February 8, 2000 and named it as www.sharekhan.com The Speed Trade account of share khan is the next generation technology product launched on April 17, 2002 SpeedTradePlus was launched on October 28, 2002 for trading in Derivatives It offers its customers with the trade execution facilities on the NSE, for cash as well as derivatives, depository services Ensures convenience in trading experience: Share Khan‟s trading services are designed to offer an easy, hassle free trading experience, whether trading is done daily or occasionally. The customer will be entitled to a host of value added services, in the investment process depending on his investing style and frequency. And offers a suite of products and services, providing the customer with a multi-channel access to the stock markets. Sharekhan Limited Page 4 It gives advice based on extensive research to its customers and provides them with relevant and updated information to help him make informed about his investment decisions. Share khan offers its customers the convenience of a broker-DP. It helps the customer meet his pay-in obligations on time thereby reducing the possibility of auctions. The company believes in flexibility and therefore allows accepting late instructions without any extra charge. And execute the instruction immediately on receiving it and thereafter the customer can view his updated account statement on Internet. Sharekhan Depository Services offers demat services to individual and corporate investors. It has a team of professionals and the latest technological expertise dedicated exclusively to their demat department. A customer can avail of Demat \ Remat, Repurchase, Pledge, Transmission facilities at any of the Share khan branches and business partners outlets. Sharekhan Limited Page 5 CURRENT POSITION VISION To empower the investor with quality advice and superior service to help him take better investment decisions. We believe that our growth depends on client satisfaction. MISSION To provide the best customer service and product innovation tuned to diverse needs of clientele Continuous up-gradation with changing technology, while maintaining human values. Respond to progressive globalization and achieving international standard. Efficiency and effectiveness built on ethical practices. CORE VALUE Customer satisfaction through . Providing quality service effectively and efficiently . “Smile, it enhances your face value ” is a service quality stressed on periodic customer service Audits Maximization of stakeholder value Success through Teamwork, integrity and People Sharekhan Limited Page 6 MARKET COVERAGE Ground Network – Largest in India 122 Franchisees and 28 branches • Covers 82 cities in 17 states across India • Trade execution facility on BSE and NSE for Cash as well as Derivatives • Depository/Demat account services • Personalized Sharekhan research advice • Uniform service standards Sharekhan Limited Page 7 SEVEN P‟S OF SHAREKHAN PRODUCT Product Variety Share khan offers 3 types of online trading accounts for its customers specially designed according to their volume in share trading. Those 3 varieties are: Classic- for retail investors Speed Trade: for high net worth investors with large and active equity portfolio who need to monitor and action swiftly Speed trade Plus- for high net worth investors dealing in derivative market. Quality User Friendly, attractive & colorful Website Design The website of Share khan namely www.sharekhan.com has been specially designed to facilitate its users to buy and sell shares in an instant at anytime and from anywhere they like. The site is user friendly allowing even a layman to easily operate without any hassles. Features: Share khan‟s product comes with the following features: Trade execution in a fraction of a second! Single Screen Trading Terminal Real time streaming quotes. Price watch on any number of scripts. Hot keys similar to Brokers Terminal. Customized Alerts based on Multiple Parameters. Back up Facility to place trades on Direct Phone Lines. Sharekhan Limited Page 8 Intraday charts, updated live, tick-by-tick. Instant Order\ Trade Confirmation in the same window Live margin, position, marked to market profit & loss report. Competitive Brokerage Flexibility to customize screen layout and setting Facility to customize any number of portfolios & watch lists Facility to cancel all pending orders at one click Facility to square off all transactions at one click Top Gainers, Top Losers, and Most Active, updated live. Index information; index chart, index stock information live. Market depth, i.e. Best 5 bids and offers, updated live for all scripts Online access to both accounts and DP Live updated Order and Trade Book. Details of pending executed and rejected orders. Online access to Customer Service 128 - Bit super safe encryption. Facility to place after market orders Online fund transfer facility from leading Banks Online intra-day technical calls Exhaustive database of over 2000 companies Historical charts and technical analysis tools Last but not the least, ideas that help you to make money!!! Sharekhan Limited Page 9 Brand Name The company as a whole in its offline business has named itself as SSKI Securities Pvt.
Load more

Recommended publications
  • Role of Corporate Goverance and Sebi : a Critical Analysis
    Journal of Xi'an University of Architecture & Technology Issn No : 1006-7930 ROLE OF CORPORATE GOVERANCE AND SEBI : A CRITICAL ANALYSIS Dr. Neetu Prakash Assistant Professor, Guru Nanak Khalsa College for Women, Model Town, Ludhiana ABSTRACT Corporate frauds or financial crimes or financial frauds can be classified as white-collar crimes, which represent the illegal acts that are characterized by deceit, concealment or violation of trust. The fraudulent exercises practiced by Enron, WorldCom and Martha Steward shook the world. Of these scandals, the Enron accounting scandal was the most infamous one. There were similar allegations against the WorldCom Company, whose CEO Bernard Ebbers hid an expenditure of $11 bn; later this led the company to bankruptcy. Frauds have occurred in almost every country in the world, in almost every sector, including banking, insurance, telecom, automobile industry, health, and the list is endless. The growing focus on cross-border expansion, high levels of growth with internal processes not keeping pace and large number of new employees joining the organization are making most companies vulnerable to greater fraud risk in recent times. The IT hackers and fraudsters can pose a significant threat of a financial crime. Cyber-crimes, economic crimes, ethical crimes, falsification of accounts by showing inflated profits, breach of fiduciary duty, breach of confidential information, non- disclosure of material facts etc. are causing enormous harm to the rights and interests or the society. Every such corporate fraud is a heinous crime against humanity, as it adversely affects and ruins the fortunes of large segments of innocent people. There are several adverse consequences of financial crimes.
    [Show full text]
  • Private Sector Opinion Issue 11
    Private Sector Opinion CRASHES, BAILOUTS, REGULATIONS Issue 11 Foreword With the recent stock market frauds in markets around the world such as the Madoff case in the U.S. and the recent Satyam fraud in India, no nation can hold A Global Corporate its head high and claim to have good corporate governance. The reality is that the problems of fraud, faulty audits, misleading accounts, lack of transparency, Governance Forum conflicts of interest, criminal destruction of records and a long list of other cor- porate governance violations, are not limited to emerging markets but are very Publication much in evidence in developed markets as well. Given recent events then, the importance of sound corporate governance is becoming increasingly apparent. International organizations like the OECD, the World Bank and the International Corporate Governance Network (ICGN), along with major fund managers, are formulating sets of codes and principles that can be applied globally. It is also clear, however, that governments have generally done a poor job of policing the complex world of finance and that the greater part of the task will be left to self- policing on the part of the participants. There is no doubt about it: sound corporate governance pays. Several studies undertaken by various organizations have shown that: there is a direct relation- ship between good corporate governance and investment returns. The oversight that comes from transparency and accountability creates a structure where the managers are discouraged from mismanaging the company, be it though a lack of diligence or care, improper decision-making, or even intentioned unconscio- nable behavior.
    [Show full text]
  • Case License to Bank
    Case License to Bank Raji Ajwain1 Abstract This case study has been modelled upon the recent working paper released by the RBI 2. .. As the Indian economy surges ahead, the requirements of the consumers, the profile of the stakeholders and the complexity of the operations is undergoing a huge change. The interlocking of the financial community worldwide and at the same time the uniqueness of the Indian situation make it a tough balancing act for the regulator(RBI). The need to encourage sound operations, robust regulations keeping in mind the public interest and watching the growth options are some of the issues discussed herein. The case aims at highlighting international practices along with those followed in Indian so as to invite a discussion on topics listed in this important document released by the Indian regulator (RBI) which is bound to impact the future course of the banking industry. Keywords: Reserve Bank of India, License, Non-Banking Financial Company It is a muggy Monday afternoon in Mumbai. The senior officials of the Reserve Bank of India (RBI)2 along with the banking industry representatives have congregated in the board room to decide upon some crucial issues one among which was the granting of new bank licenses to prospective candidates(see Illustration # 1). The list of the applicants is impressive and has a good sprinkling of leading names of NBFC’s, leading real estate players, banking professionals with impeccable qualifications etc. If the weather outside the room is humid, the temperature inside the board room fluctuates rapidly, sometimes soaring very quickly, the atmosphere 1 Faculty, Symbiosis Centre for Management and Human Resource Development, Pune- 411057 Email: [email protected] 134 charged by the discussions between the board members.
    [Show full text]
  • Harshad Mehta and the Billion-Dollar Scam
    HKU904 PREETI GOYAL SANJAY DHAMIJA FINANCIAL SYSTEM SECURITY: HARSHAD MEHTA AND THE BILLION-DOLLAR SCAM Harshad Mehta, the iconic “Big Bull” of the Indian stock markets, unceremoniously departed from this world on 31 December 2001. Mehta, the notorious architect of a billion-dollar Indian stock market scam that was exposed in early 1992, left behind a legacy of criminal cases, legal battles, debts and soured dreams. He had single-handedly both ignited and shattered the dreams of millions of Indians of earning the glamourous returns that stock markets potentially offered. As if right out of a fairy tale, Mehta’s was a classic rags-to-riches story. Spending his early childhood in a small Indian town, he became one of the foremost stockbrokers in India. Mehta died in custody 10 years after the scandal that made him a household name in India. What were the deficiencies in the microstructure of the Indian financial system that Mehta was able to exploit to pull off his billion-dollar scam? Pre-1991 Indian Financial System Long before the formal financial systems came about, Indian traders exchanged promissory notes called “hundis”. Trading in these promissory notes usually took place under a large banyan or neem tree. The hundis were used for both local trade and trade between port towns and inland centres of production. They were used as instruments to provide liquidity to the markets and also to move money across time and space. Formal banking systems evolved with the setting up of the Bank of Bengal in 1809, the Bank of Bombay in 1840 and the Bank of Madras in 1843.
    [Show full text]
  • Harshad Mehta Case: Stock Market and Bank Receipt Scam
    ISSN (Online) : 2455 - 3662 SJIF Impact Factor :4.924 EPRA International Journal of Multidisciplinary Research Monthly Peer Reviewed & Indexed International Online Journal Volume: 4 Issue:7 July 2018 Published By : EPRA Journals CC License Volume: 4 | Issue: 7 | July 2018 SJIF Impact Factor: 4.924 ISSN (Online): 2455-3662 EPRA International Journal of Multidisciplinary Research (IJMR) HARSHAD MEHTA CASE: STOCK MARKET AND BANK RECEIPT SCAM ABSTRACT Kapil Kamdar Researcher in this research paper explains how one of Student, the biggest stock scandal in 1992 had been done by Indore Institute of Law, Indore, Harshad Mehta and how Harshad Mehta deceitfully washed over Rs 24,000 crore in the share trading Madhya Pradesh, system over a three-year time frame. Impact of this India scandal on legal regime of india and regulatory authority like SEBI and RBI. KEYWORDS: stock scandal, stockbroker, Bombay Stock Exchange INTRODUCTION demise at age 47 out of 20012. It was claimed that Georg Hegel, scholar once stated: "We gain from Mehta occupied with a gigantic stock control plot history what we don't gain from history." This financed by useless bank receipts, which his firm statement is fit, particularly in the light of the Rs facilitated in "prepared forward" transactions 13,000-crore Nirav Modi-Punjab National Bank between banks. Mehta was indicted by the Bombay scam. Why? Since back when India had quite High Court and Supreme Court of India as far as recently opened up its business sectors to the world concerns him in a financial scandal esteemed at in 1991, a stock dealer named Harshad Mehta had Rs.4999 Crores which occurred on the Bombay Stock done scam by abusing the loopholes in the Indian Exchange (BSE).
    [Show full text]
  • Fraudulent Financial Practices and Investor Protection in the Indian
    FINAL REPORT OF UGC SPONSORED MAJOR RESEARCH PROJECT ON FRAUDULENT FINANCIAL PRACTICES AND INVESTOR PROTECTION IN THE INDIAN CAPITAL MARKET – ROLE OF SEBI F. No. 5-46/2014 (HRP) Dated 10th October, 2015 MRP-MAJOR-COMM-2013-8437 (GENERAL) Submitted to the UNIVERSITY GRANTS COMMISSION New Delhi By Dr. GADDAM NARESH REDDY PRINCIPAL INVESTIGATOR DEPARTMENT OF COMMERCE UNIVERSITY COLLEGE OF COMMERCE & BUSINESS MANAGEMENT OSMANIA UNIVERSITY HYDERABAD 2018 PREFACE The Indian securities markets have come a long way in the last three decades in terms of both quantitative as well as qualitative transformations. They have also witnessed quite a few ups and downs including a global financial crisis. The relationship between the rate of economic growth and growth in the securities market is two-fold and symbiotic. Strong economic growth helps securities market to develop and developed securities market mobilizes capital to fuel economic growth. In this ever changing global financial landscape, financial markets too are evolving, growing and getting more complex. To effectively regulate these markets, the regulators and policymakers need to be proactive, keep themselves updated and upgraded. Over a period of time, SEBI has strengthened both its regulatory purview and internal capacity to ensure that the interests of the investors are well protected. Efforts are under way to deepen the corporate bonds market, widen the penetration of mutual funds across the country and strengthening the commodities market. The efforts of the government and of policymakers, the Indian financial market will ascend to newer heights. Corporate sectors, stock markets, and the profession of accounting are increasingly gaining importance which calls for a more efficient and transparent working of corporate sectors.
    [Show full text]
  • Top 100 Women in Finance in India
    PremierPremier MembershipMembership NetworkNetwork forfor FinancialFinancial ServicesServices ProfessionalsProfessionals Exqualifi is a premier membership network set up by Association of International Wealth Management of India (AIWMI) for financial services leaders, professionals and aspirants. Exqualifi has been designed as a continuing education platform meant to offer its members opportunities to earn professional designations; to participate in multidisciplinary knowledge initiatives, enable networking at conferences; and offer one single platform for interaction, cross-pollination of ideas and collaboration. Exqualifi provides the opportunity for practitioners and related professionals to connect and advance their focused area of practice. They aim to benefit the practitioner, their area of specialization, the clients they serve, and the industry at large. An exclusive, by-invite membership An exciting membership for Thought Leaders, Entrepreneurs for full time/ part time and Prominent CXOs working in the students of undergraduate Financial Services Sector. and post-graduate courses under 25 years of age. Charter Professional Student Membership Membership Membership A prolific membership for career-oriented professionals working in the financial services and allied sectors. AIWMI, Level 9, Platina, Block G, Plot C-59, Bandra-Kurla Complex, Mumbai - 400051 +91 86574 87782 | memberships@exqualifi.com |www.exqualifi.com Welcome We are extremely excited to present to you the second edition of our Power List- India’s Top 100 Women in Finance- 2020. The world of finance used to be seen as an industry only for men for the longest time. However, that has changed in the last few years. Today, there are a number of successful women professionals in the country who are playing key roles in shaping India's financial sector and inspiring others to follow them.
    [Show full text]
  • A Case Study on Punjab National Bank Scam
    Journal of Xi' an Shiyou University, Natural Science Edition ISSN : 1673-064X A Case Study on Punjab National Bank Scam (Is it only a scam or failure of the combined banking system?) Dr. Meda Srinivasa Rao Dr. B. Kishore Babu Professor, KL Business School, Professor, KL Business School Koneru Lakshmaiah Education Koneru Lakshmaiah Education Foundation, Foundation Vaddeswaram, Vaddeswaram, Andhra Pradesh-522502 Andhra Pradesh-522502 Abstract: The “biggest bank loot scam in 70 years” in independent India happened in one of the largest Public Sector Bank that had trembled entire banking sector. Punjab National Bank (PNB) India’s second largest public sector bank released a disaster on Valentine's Day i.e. 14th February 2018 by revealing a scam of Rs.11,400 crore directed by one of the country's richest businessman of the diamond, Nirav Modi. He ranked 85th on Forbes’s 2017 list of India’s richest people. Nirav Modi had directed and executed the scam with the support of Deputy Manager of PNB Mumbai branch named Gokul Nath Shetty and clerk Manoj Kharat. Modi and his Uncle Mehul Choksi schemed with these two people. They had facilitated the issuance of unauthorized LOU (Letter of Undertaking) to Modi and his company without following an appropriate procedure. The post scam had impacted shares of PNB by evaporating the market capitalization value worth of Rs.8000 crore due to that the entire banking sector was under shocking waves. Whistleblower had transcribed to the Prime Minister’s Office (PMO) at 2016, notifying the government for the “biggest bank loot scam in 70 years” but no prompt action was taken by the government.
    [Show full text]
  • Trent Cover.Pmd
    C M Y K LETTER OF OFFER Dated: April 30, 2007 For Equity Shareholders of the Company only (Incorporated on 5th December, 1952 under the Indian Companies Act, 1913 as Lakme Limited and name changed to Trent Limited with effect from June 15, 1999) Registered Office: Bombay House, 24 Homi Mody Street, Mumbai 400 001, Maharashtra, India Tel. No. + 91-22-6665 8282 Fax No. + 91-22-2204 2081, Contact Person: Mrs. H. R. Wadia, Company Secretary and Compliance Officer, E-mail: [email protected]; Website: www.mywestside.com Corporate Office: Enterprise Center, 2nd Floor, 17/5 C.S.T., Off. Nehru Road, Vile Parle (East), Mumbai - 400 057, Maharashtra, India. Tel. No. +91-22-6676 7575 Fax No. +91-22-2612 7097 FOR PRIVATE CIRCULATION TO THE EQUITY SHAREHOLDERS OF OUR COMPANY ONLY LETTER OF OFFER ISSUE OF 31,52,147 FULLY PAID EQUITY SHARES WITH A FACE VALUE OF RS.10/- EACH AT A PREMIUM OF RS. 490/- PER EQUITY SHARE FOR AN AMOUNT AGGREGATING TO RS. 157,60,73,500 ON RIGHTS BASIS TO THE EXISTING SHAREHOLDERS OF OUR COMPANY IN THE RATIO OF 1 FULLY PAID EQUITY SHARE FOR EVERY 5 EQUITY SHARES HELD BY THE EXISTING SHAREHOLDERS ON THE RECORD DATE, THAT IS ON MAY 15, 2007 GENERAL RISKS Investments in equity and equity related securities involve a degree of risk and investors should not invest any funds in this Issue unless they can afford to take the risk of losing their investment. Investors are advised to read the Risk Factors carefully before taking an investment decision in this Issue.
    [Show full text]
  • IAIP Newsletter June 2019.Cdr
    NEWSLETTER J U N E 2 0 1 9 www.cfasociety.org/india Quotable Quotes If you are born poor, it’s not your fault. But if you die poor, it’s your fault. - Bill Gates NEWSLETTER - June 2019 1 INDEX Message from the CFA Society India Board ........................................................................................ 3 Cover Story Budget - Vision document for 5 years ...................................................................................... 5 RBI's revised debt resolution rules more prudential, less punitive ........................................... 7 Women in Finance ............................................................................................................................... 11 In Conversation with… Sanjiv Singhal - Founder & COO, Scripbox ............................................................................ 13 Gaurav Hinduja - Co-founder and Managing Director, Capital Float .............................. 16 ExPress Where is the Alpha? ................................................................................................................. 20 Modern monetary theory- A resurrection of a failed idea .................................................. 25 Book Review Masterclass with Super Investors ............................................................................................. 31 An Economist walks into a Brothel .......................................................................................... 32 Advocacy Update ...............................................................................................................................
    [Show full text]
  • FINNACLE Newsletter Issue 2
    O C T O B E R 2 0 2 0 : I S S U E # 0 2 N M I M S N a v i M u m b a i ' s m o n t h l y f i n a n c e n e w s l e t t e r TCS OVERSHADOWS ACCENTURE THE NOBEL PRIZE Watch of the month: WINNING REVOLUTION SCAM 1992: A IN THE AUCTION THEORY captivating saga of the Harshad Mehta scam. INVESTMENT GUIDE FOR GRAD SCHOOL STUDENTS AND MUCH MORE.... FOREWORD Dear readers, Thank you for taking time out of your busy day to read the second issue of this e-Newsletter! Welcome to the second issue of Finnacle. I am extremely proud to roll out the second edition of the monthly newsletter written by the students of NMIMS, Navi Mumbai. The entire team at Fincorp would like to thank readers for the overwhelming response to the first issue of Finnacle, released in September 2020. I thank our campus director - Dr. P.N. Mukherjee and our faculty mentor - Dr. Nupur Gupta for their constant support and encouragement. I would also like to thank the students of NMIMS, Navi Mumbai who took time out of their busy schedules to contribute to this newsletter. “Finnacle” endeavors in contributing to the knowledge frontier in the dynamic world of finance with professionally researched articles on contemporary topics. The Fincorp Team consists of a group of young management students that have a keen interest as well as an expansive knowledge base in finance.
    [Show full text]
  • The Growth of Sebi
    THE GROWTH OF SEBI - FROM HARSHAD MEHTA TO SUBRATA ROY By Simran Chandok410 INTRODUCTION The Securities Exchange Board of India popularly known as SEBI is in its 27th year of existence. However, the original architects of SEBI would not recognize what it has become today. From a mere regulatory authority to a statutory authority; from a silent spectator to the market watchdogs; SEBI has come a long way since its inception. SEBI came into existence on 12th April, 1988. It replaced the Controller of Capital Issues Department of the Government. In 1988, SEBI had limited powers with a negligible jurisdiction. In 1992, the SEBI Act bestowed a plethora of responsibilities on the body and gave it a statutory status. Thus after 1992, SEBI was known as a statutory authority and its jurisdiction extended to the whole country except the erstwhile princely states of Jammu & Kashmir. The SEBI Board is headed by a Chairman (nominated by the Union Government of India). The Board consists of 2 Officers from the Union Finance Ministry serving as whole time members, 1 member from the Reserve Bank of India (RBI) and 5 members nominated by the RBI (at least 3 out of 5 RBI nominated members must be whole time members). Currently, U.K. Sinha is the Chairman of the SEBI Board. Since its inception, SEBI has grown steadfastly. Its gradual growth can be analyzed through 3 scams- Harshad Mehta Securities Fraud, Satyam Scandal and Sahara Scam. DEVELOPMENT OF SEBI THROUGH THE 3 DECADES Harshad Mehta Securities Fraud (1988-1995) 410 2nd Year BBA LLB (Hons.), Symbiosis Law School, Pune International Journal For Legal Developments & Allied Issues Volume 1 Issue 2 [ISSN 2454-1273] 205 In 1988, SEBI had limited powers.
    [Show full text]