Capital Market Reforms (General)

• CCI (Controller of Capital Issues Act, 1947) was

Abolished.

• Statutory Status to SEBI.

• Regulation of Stock Exchanges by SEBI.

(SC(R)A Act,1956 Notification)
Capital Market Reforms (General)

•Redressal of Complaints.

•Permission to FIIs & NRIs.

•Permission to Indian Companies to use ADRs & GDRs.

Capital Market Reforms (General)
• OTCEI
- Incorporated in 1990 U/S 25 Companies Act 1956
- Recognized as Stock Exchange U/S 4 SC(R)A 1956

• NSCCL by NSE
- Incorporated in August 1995
- Commenced operations from April 1996
 Primary Market Reforms…
...since 1991-92
• Merchant Banking.

• Book Building

• Disclosure
- Code of advertisement
- Details to be specified in the offer document.
 Secondary Market Reforms…
...since 1991-92
• Governing Body of Stock Exchange. (13 members)
– One Executive Director appointed by the Stock Exchange
– Six members of the Stock Exchange
– Not more than three members by Central Government
– Three Public Representatives Nominated by the Board
– Not more than three members nominated by SEBI

• Capital Adequacy Norms (DP-Client Relationship).

 Secondary Market Reforms…
...since 1991-92
• Depository Ordinance (NSDL & CDSL).

• Circuit Breaker

• Short Selling

• Dematerialisation started in 1997.

 Capital Market Reforms
• Statutory market regulator
-created in 1992.
-empowered to regulate the collective
investment schemes and plantation schemes.
- strengthening of SEBI through compliance
and enforcement powers including search and
seizure powers.
 Capital Market Reforms
• Derivatives – Futures & Options.

• Rolling Settlement.
- T + 2 Rolling Settlement (clearing-settlement)

• Spot Market.

• Intraday settlement.
 Capital Market Reforms

• VaR.(Security Sigma)

• SBTS (Screen Based Trading System).

• Straight Through Processing (STP).

• Real Time Gross Settlement system (RTGS).

THANK YOU