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Friday, 13 September 2013

WHAT IS REGULATORY FRAMEWORK IN STOCK MARKET

REGULATORY FRAMEWORK

The five main legislations governing the securities market are:

(a) the SEBI Act, 1992 which established SEBI to protect investors and develop and regulate securities market;

 (b) the Companies Act, 1956, which sets out the code of conduct for the corporate sector in relation to issue, allotment and transfer of securities, and disclosures to be made in public issues;

(c) the Securities Contracts (Regulation) Act, 1956, which provides for regulation of transactions in securities through control over stock exchanges;

(d) the Depositories Act, 1996 which provides for electronic maintenance and transfer of ownership of demat securities; and

(e) the Prevention of Money Laundering Act, 2002 which prevents money laundering and provides for confiscation of property derived from or involved in money laundering. 
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