Essay On Securities Regulations

The US Securities and Exchange Commission (SEC) is the US federal agency that holds the primary mandate to enforce federal securities laws and regulations to control the securities industry and the country’s stock exchange and regulation of all activities and organizations including the US electronic securities market. The SEC is committed to promoting a market environment that yields public trust characterized by integrity to attain its mission of protecting investors through maintenance of fair and efficient markets through facilitation of capital information (Basagne, 2010). The SEC financing is a major area of focus since there has been major concern regarding the SEC agency financing and whether they utilize the

The Securities and Exchange Commission has the mission of protecting investors by maintaining fair, orderly and efficient markets. The SEC does this in a number of ways, and firms need to pay attention to these ways in order to ensure SEC compliance. The SEC has enforcement authority over a number of areas related to the nation's capital markets, including insider trading, accounting fraud, and providing false information. The SEC's jurisdiction extends to all securities that are traded publicly. Privately-held companies do not need to register with the SEC (SEC.gov, 2012).

The SEC assists in providing investors with reliable information upon which to make investment decision. The Securities Act of 1933 requires most companies planning to issue new securities to the public to submit a registration statement to the SEC for approval. The Securities Exchange Act of 1934 provides additional protection by requiring public companies and others to file detailed annual reports with the commission. Smackey Dog Food, need to file next forms:

The SEC was created due to the stock market crash of 1929 which led to the great depression. The SEC was created to protect investors in security exchanges such as the stock market. It is responsible for oversight of both private investment and corporate investment dealings.

The Securities Exchange Act of 1934 was passed by congress to strengthen the government’s control of the financial markets. It was preceded by the Securities Exchange Act of 1933 which was enacted during the Great Depression in hopes that the stock market crash of 1929 would not be repeated. The basic difference between the two acts was that the 1933 Act was to govern the original sales of securities by requiring that the issuers, the companies offering the securities, offer up sufficient information about themselves and the securities so that the potential buyers could make informed decisions. The 1934 Act was

The Glass Steagall Act was passed on 1933, which is also known as The Banking Act to tighten regulation on the way banks did their business. This act was written as an emergency measure when about 5,000 banks failed during the Great Depression. Banks mostly failed because of the way they would invest with money. The act prohibits banks from investing money on investments that turn out to be risky. Banks could no longer sell securities or bonds. The act also created Federal Deposit Insurance Corporation (FDIC) to protect the deposits of individuals, which is still used to this date. The FDIC in this era insures your deposits in your bank up to $250,000. This gave the public confidence again to deposit their money in the bank. In 1933

These acts were a violation of the Securities Act of 1933. The objectives of the Securities Act of 1933 are that investors obtain accurate reports of a company's commerce and to prevent misleading securities sales (USSEC, 2007). Although, the USSEC cannot guarantee the information provided by each company; the Securities Act of 1934 grants authority to the USSEC with disciplinary authorization (USSEC, 2007).

The banking and securities industries had regulations since the 1930s or earlier. The laws were there to help regulate and give depositors some security. For one reason or another, the law has been changed, updated or appealed. The Banking Act of 1933, known as the Glass–Steagall Act named after the Congressional sponsors: Senator Carter Glass, a former Treasury Secretary and Senator Henry Steagall (Heakal). The Glass-Steagall Act foresaw problems with banks over lending becoming involved in securities. The Federal Deposit Insurance Corporation (FDIC) came out of The Act of 1933 (Stammers). The Federal Deposit Insurance Corporation (FDIC) wanted banks held accountable to depositors and the federal government for their actions. The major part of this act was to keep banks and securities separate until 1999 Gramm-Leach-Biley Act (GLBA) (Heakal). The GLBA allowed banking and securities to mingle and compete in domestic and international markets.

The Glass-Steagall Act was a law enacted right after the stock market crash of 1929, whose intent was to split commercial and investment banking activities into two different entities. The main objective of the act was to prevent future crises and bank runs. The provision of the act disallowed commercial banks to deal with underwriting and/or dealing in securities, and to have a cap in place on the amount of debt securities being purchased by the bank, after it was approved by the regulatory agencies at the time. The act also stipulated that investment

The stock market crash of 1929, resulted in the enactment of the securities act of 1933 and the Securities Exchange Act of 1934. The SEC was created to restore the public confidence and prevent another financial disaster. As a result, companies are required to explain the risks involved in investing in any securities offered to the public.

The term, “security” is usually defined with a specific focus on the “national security”; therefore the term usually refers to the neo-realist definition of the security that is absence of the military threat to the states. Hence, the neo-realist definition, which is the dominant one in the field, mainly concerns about the security of “states”. However, as one can see in the movie, Buried (2010), the realist definition is only the surface of the security problem because it is sure that there are some other subjects of the security such as “humans”. These two subjects of the security, unfortunately do not always go hand in hand but conflict with each other.

What is the meaning of financial regulation? Specifically, the financial regulation means there are sets of regulation or supervision, which let the financial organizations comply to requirements, restrictions formulated by government or any other institution. The aim for financial regulation is keep the integrity of financial system, and this objective composing four parts ,the first parts is the regulation should maintain the confidence in financial system, the second part is enhancing the stability of financial system ,the third part is it should protect the consumer rights and the last one is reduce or prevent the financial crime( Kushmeider, Rose Marie,2005).

During the Great Depression the Glass-Steagall Act was enacted in 1933. The legislation prevented commercial and investment banks from competing with each other and protected their balance sheets by having each sector focus on certain transactions.

The Securities Act of 1933 and the Securities Exchange Act of 1934 required investment banks to make full disclosures of securities offerings in investment prospectuses and charged the SEC with reviewing them. This legislation also required companies to regularly file financial statements in order to make known changes in their financial position. As a result of these acts, bidding for investment banking projects became competitive as companies began to select the lowest bidders and not rely on major traditional companies such as Morgan Stanley and Kuhn, Loeb.

The purpose of this study is to take stock regulatory infrastructure of the Indian securities market and see whether there exist well formulated laws with well-defined scope and powers of the regulator, capable of presenting all investors in the Indian market with a level of playing field. We summarise some of the regulatory provisions that have evolved for tackling market misconduct and try to see what comes in the way of regulatory action aimed at investor protection in India, as compared with US which is perceived as the world’s most safe and liquid capital market. We also discuss the roles the stock exchanges and electronic databases in aiding the regulator in prevention, detection and conviction of securities frauds. One tends to conclude that the scope of Indian securities laws which gave gradually evolved over time is now quite pervasive and the problem lies mostly in the enforcing compliance particularly for crimes such as price manipulation and illegal insider trading. Our discussion suggests that there remains need to ensure that laws/regulations are rationalised to completely empower SEBI to carry out its functions as the principle regulator, while SEBI in turn needs to drastically upgrade its surveillance process enabling to produce evidence that is credible enough to secure conviction.