Shelsheya S L, LLM (Corporate Governance and Industrial Jurisprudence), Department of Law, School of Legal Studies, Central University of Tamilnadu, Thiruvarur
ABSTRACT:
Incorporated companies must secure capital for their day-to-day operations, requiring a deep understanding of the financial market. This market can be categorized into two key segments: the money market, which is overseen by the Reserve Bank of India, and the capital market, further divided into the primary market and secondary market. Securities such as shares, bonds, stocks, and debentures are subject to regulation and are traded in both primary and secondary markets. In the primary market, investors acquire newly issued securities from companies, while in the secondary market, they trade existing securities of those companies. The stock exchanges, also known as the stock market or share market, serve as organized platforms for the buying and selling of securities. These securities are listed on stock exchanges, where stock brokers and sub-brokers play a central role in facilitating these transactions. There were many basic complaints with the broker community like manipulation of securities prices, price rigging, insider trading activities, delays in investor settlement, lack of transparency, reluctant to pass information to small investors, delay or no delivery of contract notes, no guarantee or assurance of share transfer or money of investors. Thus, to eradicate these issues and to regulate stock brokers in India the central government framed the Securities and Exchange Board of India (stock brokers) Regulations 1992. This study is to analyze the provisions of the SEBI Stockbrokers Regulation, 1992, also to highlight the recent developments in the role of stockbrokers in the Indian Stock market, and point out the challenges faced by the stockbrokers and recommendations to overcome those challenges.
Commentaires