October 29, 2013

Achievements of SEBI

Tuesday, October 29, 2013 Banking Awareness 3 comments

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Friends, in our previous posts we have discussed about the Introduction and the important roles of SEBI. In this post we shall discuss about the major achievements of SEBI.

The following are the major contributions of SEBI.

Enhancement of Corporate Governance : SEBI has taken steps to enhance the level of corporate governance.
Improving the Accounting Standards : The accounting standards of firms and intermediaries have been improved.
Increase in Number of investigtions : The markets have been placed under surveillance through measures such as stock watch system, on-line surveillance system at stock exchanges, inspection of intermediaries and so on. The number of investigations by SEBI and the persons investigated has been on the rise.
Acceleration of Scripless Trading : The process of dematerialisation and scripless trading has been accelerated.
Trading in Derivatives : Trading in derivatives has been introduced with appropriate infrastructure. Derivatives are those assets whose value is determined from the value of some underlying assets which may be equity, commodity, currency etc. These are used for the purpose of reducing risk. The different forms of derivatives are options, futures, swaps etc.
Reduction of No Delivery Period : 'No delivery' period on the stock exchanges is reduced.
Rolling Settlement System : Rolling Settlement System has been introduced.
Reduction of Transaction Cost : Transaction costs have been gradually reduced through rationalization of margin systems.
Trading of Debt Securities : Trading in debt securities have been introduced.
Streamling the Procedure for Issue : Systems and procedures for issue of capital were streamlined.
Freedom to issue Shares of any Denomination : Granting freedom to companies to issue shares in any denomination but not below Re. 1.
Enhancing the Operational Efficiency : Operational efficiency of the market participants has been enhanced by providing full, relevant, accurate and timely information through computerized screen based trading .