INTRODUCTION
The neo-economic liberalization undertaken in India in the 1990s, lead to a new and improved market structure. It redefined the roles of the various agents in the economy and founded a system based on the market forces. It was in the backdrop of these changes that there was a marked shift in the role of the government from an agent that ran businesses to an agent that primarily undertook regulation and supervision to ensure optimization in the running of the businesses in India. This shift in the role of the state ushered in an era of regulators . The regulators embodied the expertise, domain knowledge and the impartiality that the government influenced by the political party in power could not effectively provide.
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The Intermediaries Regulations 2008, were notified in May 2008 and brought about substantial changes in the treatment and compliance requirements of intermediaries in the Indian securities market.
This paper seeks to analysis the functioning of the aforesaid regulations in the context of the Indian securities market. It begins with a brief introduction on the meaning and definition of intermediaries along with the circumstances in which the Intermediaries Regulations, 2008 were enforced. The next section delves deeply into the various provisions of the regulations. The concluding section deals with the success of the regulations and tries to identify lacuna in the implementation to create a more efficient system for regulating the securities markets that the SEBI is trying to achieve.
DEFINITION OF INTERMEDIARIES AND THE NEED FOR THE INTERMEDIARIES REGULATIONS, 2008
Before any progress can be made in determining the exact regulatory structure envisaged by the Intermediaries Regulations of 2008, it is important to discuss the scope of the term intermediaries and the various agents of the market that it seeks to incorporate within its ambit.
In common parlance, intermediaries can be understood as middlemen. With the expanding markets and opening
However, this lack of governance is not just seen as disadvantage for India. India is amongst the top 40 nations to have been involved in the highest number of business regulation reforms in the last five years (Innovasjonnorge, n.d.). Reform has eased business operations in India as the mainly concern the introduction of new technology. These technological improvements have led India to be highly industrialised, rather than agriculturally based like in the past. For instance, India is now the world’s biggest manufacturer of small cars (Innovasjonnorge, n.d.).
India came up with The Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the Central Banking Authority. Phase II The following are the steps taken by the Government of India to Regulate Banking Institutions in the Country:
In 1 July 2005 Insider Dealing Directive (IDD) came into operation and was put in place of Market Abuse Directive (MAD). The new Directive has a more extensive degree than the past one as it likewise prohibits market control. Besides, it incorporates new principles on insider dealing with an end goal to reinforce administrative implementation around this field. Truth be told, the IDD, in spite of presenting a broad meaning of insider managing, turned out to be fairly feeble in upholding the disallowance at the
The East India Company was a British joint-stock company establish on the 31st of December, 1600 under the original name ‘The Company of Merchants of London trading into the East Indies.’ Over the next hundreds of years the Company set a sail attempting to find riches in trade on their journeys to these new lands. They found value in crops such as indigo, salt, cotton, silk, opium and other cash crops that the barren land of Europe lacked. This would be the company that would set sail to the land of India and dominate its soil from the middle of 1700’s to the middle of the 1800’s.
The Securities and Exchange Commission’s mission is to “protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.” The purpose of this paper is to examine three recent federal security laws to see if they uphold all parts of the SEC’s mission. The three laws to examine are Sarbanes Oxley Act (2002); Emergency Economic Recovery Stabilization Act (2008); and Dodd Frank Wall Street Reform and Consumer Protection Act (2010).
21. Banerjee Amalesh and Singh S.K. (2002), Banking and Financial Sector Reforms in India, Deep and Deep Publications Pvt. Ltd., New Delhi-p.265 (Report of K. Madahav Rao Committee (1979)
The Dictionary of Banking and Finance characterizes “Investment Banking” as a term utilized as a part of the US to mean a bank, which bargains with the guaranteeing of new issues and prompts partnerships on their budgetary undertakings. The proportionate term in UK for such capacity is “Issue House”. A more extensive definition is given by Bloomberg, which characterizes a speculation bank as a budgetary go-between that performs a mixed bag of administrations incorporating supporting in the offer of securities, encouraging mergers and other corporate rearrangements, going about as specialists to both individual and institutional customers and exchanging for its own record. Speculation Banking has developed to include a critical place in the field of money related administrations in India in the changed period.
The economic system that developed in India after 1947 was a mixed economy characterized by a large number of state-owned enterprises, centralized planning, and subsidies. In 1991, India’s government embarked on an ambitious economic reform program. Much of the industrial licensing system was dismantled, and several areas once closed to the private sector were opened. In addition, investment by foreign companies was welcomed, and plans to start privatizing state-owned businesses were announced. India has posted impressive gains since 1991, however there are still impediments to further transformation. Attempts to reduce import tariffs have been stalled by political opposition from employers, employees, and politicians. Moreover, the privatization program has been slowed thanks to actions taken by the Supreme Court. Finally, extreme poverty continues to plague the country
After World War II, the widespread implementation of colonial rule was ended and widespread post-colonial self-governance began. These fledgling states were mostly provided with a framework for governance that was left over from the previous colonial rule. The Parliament of India largely mirrors that of England, and this creates fundamental issues within the governance and creation of a new state, especially one with India’s population. An already established style of governance has ways of being manipulated by outside forces that have been working within these frameworks for decades, possibly even a century or more, namely private corporations. When a private corporation effects a government in their own self interest, the corporate entity generally externalizes all risk to the governmental body and the public. In many cases, government intervention in the form of regulation or deregulation can allow for a trans-national corporate entity to exploit laws and operate in an unethical, but legal manner. In 1956, the nine year old Indian government passed the Companies Act of 1956, requiring, “affiliates of foreign companies to register as separate companies under Indian Law and imposes limits on foreign investment and participation in all Indian companies” (Peterson 2). Union Carbide, an American multi-national chemical conglomerate, wholly owned its Indian subsidiary and after the passage of the Companies Act. Union Carbide was required to reduce its ownership of
The 90’s were a very tumultuous time for the Indian economy 1992 saw India takes its first steps towards economic liberalization. Along with the opening up of the economy Indian Steel also saw the entry of a number of domestic players. Private investment flowed into the industry adding fresh capacities. The major growth came after economic liberalization in 1992. Steel production and consumption, which were earlier controlled by government, were liberalized. This encouraged the growth of private enterprises that were further responsible for the growth of the industry, especially
Financial institutions such as banks, insurance companies and pension funds are also known as 'Financial Intermediaries'. They dominate the financial scene all around the globe. It is virtually impossible to spend or save or lend or invest money nowadays without getting involved with some kind of financial intermediary in one way or another. Although all have similar functions, yet they are different. They are as follow...
Claritying of the legislations governing the various activities of the market, seeking to update it to respond to the actual practice and consistency with the best international practices, and providing access to products and modern financial instruments. The necessity of consulting the concerned parties, especially those working in the activity.
This report also compares India‘s current regulatory framework with pre- and postderegulation of the United States of America and Brazil, as models of potential sector growth
As you all are aware that the Securities and Exchange Board of India has recently notified the new Insider Trading Regulations replacing the two decades old Regulations. Pursuant to the said notification, the roles and responsibilities of the Board of Directors and Compliance Officer of the Company have been expanded.
Manmohan Singh made another choice that helped push the entire economy out of the ditch that it was trapped in. He made the choice to deregulate and privatize underperforming businesses, helping to increase GDP, as well as relieve internal government debt. Before the 1991 crisis, one could not own a business without explicit permission form the government’s financial department, or if you completed a rigorous paperwork completion course called License Raj that took months, in some cases a whole year to complete. When the crisis hit, India’s debt stood at 68.05% of the GDP. To remove this debt, Manmohan Singh removed the License Raj, replacing it with more simplistic paperwork to obtain a business license. This encouraged