Which are the important legislations governing the Capital Markets in India? Explain any four of them.

CS Executive · Capital Markets & Securities Laws · PYQS · December 2020
Which are the important legislations governing the Capital Markets in India? Explain any four of them.

Answer & Explanation:

The important legislations governing the Capital Markets in India are: SEBI Act, 1992 SEBI Act, 1992 establishes SEBI with statutory powers for: protecting the interests of investors in securities promoting the development of the securities market regulating the securities market Conduct enquiries, audits and inspection of all concerned and adjudicate offences under the Act. Securities Contracts (Regulation) Act, 1956 It provides for direct and indirect control of virtually all aspects of securities trading and the running of stock exchanges and aims to prevent undesirable transactions in securities. Depositories Act, 1996 It provides for the establishment of depositories in securities with the objective of ensuring free transferability of securities with speed, accuracy and security by (a) making securities of public limited companies freely transferable subject to certain exceptions, (b) dematerializing the securities in the depository mode, (c) providing for maintenance of ownership records in a book entry form. Companies Act, 2013 It envisages to strengthen the existing regulatory framework on Corporate Governance. It deals with issue, allotment and transfer of securities and various aspects relating to company management. It regulates underwriting, the use of premium and discounts on issues, rights and bonus issues, payment of interest and dividends, supply of annual report and other information.

Topics: Capital Market Regulations

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