Professional Documents
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Securities
A security is afinancial instrumentthat represents
an ownership position in apublicly-traded
corporation(stock), a creditor relationship with
governmental body or a corporation (bond), or rights
to ownership as represented by anoption. A security
is afungible, negotiable financial instrument that
represents some type of financial value. The
company or entity that issues the security is known
as the issuer.
Introduction
The securities contracts(regulation)Act ,
1956 is an Act to present undesirable in
securities by regulating the business of
dealing therein by providing for certain
other matters connected therewith.
It was enacted by parliament in the
seventh year of the Republic of
India(1956) & extends to the whole of
India .
Objective
Stock Exchange in India are regulated and controlled
by the securities contracts (Regulation) Act , 1956
(Act No.42 of 1956). The objects clause describes
the Act as
An Act to prevent undesirable transactions in
securities by regulating the business of dealing
therein, by providing for certain other matters
connected therewith.
Definition of Stock
Exchange
Stock Exchange means any body of individuals,
whether incorporated or not, constituted for the
purpose of assisting, regulating or controlling the
business of buying, selling or dealing in securities.
Listing of SECURITIES
Sec 21- Conditions for Listing.
Sec 21 A - Delisting of Securities.
Sec 22 - Right of appeal against refusal of stock
exchanges to list securities of public companies.
Sec 22 A- Right of appeal to Securities Appellate
Tribunal against refusal of stock exchange to list
securities of public companies.
SCR ACT
SEBI ACT
COMPANIES
ACT
SEBI Rules,
guidelines
Stock
exchanges
Intermediari
es
ISSUER
Amendments in Securities
Contracts (Regulation) Act, 1956
1. Sec 12A:- Powers of SEBI to issue directions
.
. to any person or
. company whose shares are listed or
. are to be listed.
Amendments in Penalties
Section
Earlier
After
Amendment
Sec 23A
Failure to furnish
information etc
Failure to maintain
Books of Accounts
or records
Sec 23B
Failure to enter
into agreements
with clients
Max:- Rs 1 crores
Section
Earlier
After
Amendment
Sec 23C
Failure to redress
investors grievances
Sec 23D
Failure to segregate
securities or
moneys of client or
using securities or
moneys of client for
self or for other
client
Sec 23E
Failure to comply
with listing
conditions or
delisting conditions
or grounds
Penalty not
exceeding Rs 25
crores
Minimum Rs 5 lakhs
Maximum Rs 25
crores
Section
Earlier
After
Amendment
Sec 23F
Same as Sec 23 E
Min Rs 1 lakh
Max Rs 1 crores
Excess
dematerialization or
delivery of unlisted
securities.
Sec 23G
Failure to furnish
Periodical returns etc
Sec 23H
Any contravention
for which no
separate penalty has
been provided
elsewhere
Sec 26E
Until special court is established any offence
committed under this act shall be taken cognizance & tried by
court of session exercising jurisdiction over the area.
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