Short Essay on Securities Laws – Securities can be defined as any form of ownership that can be easily traded on a secondary market (Stock Exchanges), such as stocks and bonds.
It also includes their derivatives, such as futures contracts, options, or mutual funds.
Securities laws are the body of laws governing the issuance and selling of securities. In India the securities transactions are governed by the Securities Contracts (Regulation) Act, 1956 and the Securities and Exchange Board of India Act, 1992.
ADVERTISEMENTS:
The Securities Contracts (Regulation) Act, 1956 keeps a vigil over all the Stock Exchanges of India.
The Act was administered by the Central Government. The Securities and Exchange Board of India Act, 1992 came into’ force on January 30, 1992 and governs all the stock exchanges and the securities transactions in India.
Image Source: 185.26.182.219
The Securities and Exchange Board of India (SEBI) was established under the Act to administer its provisions. Section 11 of the SEBI Act provides that it shall be the duty of the Board to protect the interest of investors in securities and to promote the development of and to regulate the securities market by such measures as it thinks fit.
ADVERTISEMENTS:
As all Stock Exchanges are required to be registered with SEBI all the stock brokers, sub-brokers, share transfer agents, etc., are obliged to register with the Board and the Board has the power to suspend or cancel such registration.