logging in or signing up SEBI Guidelines Assignment brijesh45 Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 4041 Category: Education License: All Rights Reserved Like it (11) Dislike it (0) Added: June 22, 2010 This Presentation is Public Favorites: 10 Presentation Description No description available. Comments Posting comment... By: arjunmehta (7 month(s) ago) Hello sir, This is very good presentation which help me a lot in my study I request you to send me this ppt on this email ID. .arjunmehta3@gmail.com Saving..... Post Reply Close Saving..... Edit Comment Close By: rameshsainy (8 month(s) ago) please send me this ppt on my email id..... rameshsainy@gmail.com Saving..... Post Reply Close Saving..... Edit Comment Close By: brijesh45 (8 month(s) ago) plz give ur email id so can send u mail Regards Brijesh Saving..... Post Reply Close Saving..... Edit Comment Close By: mmgandhi (9 month(s) ago) Resp Sir, Thanks for the reply & co-operation. Pl mail the ppt at mmgandhi2011@gmail.com / gandhimanesh@yahoo.com I will use the ppt for the teaching purpose only. Prof Gandhi Saving..... Post Reply Close By: brijesh45 (9 month(s) ago) hv mailed you the ppt... plz chek n confirm Saving..... Edit Comment Close By: mmgandhi (9 month(s) ago) REsp Team Members, I, Asso Prof , working with C U Shah Commerce College, Ashram Road, Ahmedabad India , teach Accountancy, Taxation & Management at UG & PG . I request you pl to allow me free download the ppt on SEBI Guidelines by Dr Brijesh Deodhar & Rakhee Varsolkar or may mail at my address. Awaiting favourable reply to be helpful to the learners. Prof Gandhi Saving..... Post Reply Close By: brijesh45 (9 month(s) ago) Dear Sir.... Please give ur Email ID so can sent you the Presentation Saving..... Edit Comment Close loading.... See all Premium member Presentation Transcript By Brijesh Deodhar& Rakhee Varsolkar : By Brijesh Deodhar& Rakhee Varsolkar 1 SEBI GUIDELINES What is SEBI? : What is SEBI? SEBI is the regulator for the security Market in India. In 1988 the Securities and Exchange Board of India (SEBI) was established by the Government of India through an executive resolution, and was subsequently upgraded as a fully autonomous body on April 12, 1992 the Securities and Exchange Board Of India was constituted. It was constituted in accordance with the provisions of the Securities and Exchange Board Of India Act 1992. 2 SEBI GUIDELINES Preamble : Preamble “…To protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto” 3 SEBI GUIDELINES Functions of SEBI : Functions of SEBI The Board is responsible for the securing the interests of investors in securities and to facilitate the growth of and to monitor the securities market in an appropriate manner. To monitor and control the performance of stock exchange and derivative markets. Listing and monitoring the functioning of stock brokers, sub brokers, share transfer agents, bankers to an issue, trustees of trust deeds, registrars to an issue, merchant bankers, underwriters, portfolio managers, investment advisers and others associated with securities markets by any means. Monitoring and Controlling the functioning of venture capital funds and mutual funds. Forbid unjust and dishonest trade practices in the security markets and forbid insider trading in the security market. Undertake periodic audits of stock exchanges, mutual funds, individuals and self regulatory organizations associated with the security market. 4 SEBI GUIDELINES Why Investor’s Protection is important…! : Why Investor’s Protection is important…! 5 SEBI GUIDELINES Background : Background Investors are the backbone of the securities market. They determine the level of activity in the securities market and the level of activity in the economy. Many investors may not possess adequate expertise/knowledge to take informed investment decisions. May not be aware of the complete risk-return profile of the different investment options. may not be fully aware of the precautions they should take while dealing with market intermediaries and dealing in different securities. They may not be familiar with the market mechanism and the practices as well as their rights and obligations. 6 SEBI GUIDELINES Scams in Stock Market…! : Scams in Stock Market…! 7 SEBI GUIDELINES Some Leading Scams in India : Some Leading Scams in India Securities Scam – Harshad Mehta (1991-92) Floating Companies Scam – C R Bhansali (1992-96) UTI Scam – Unit 64 – Bailout Package of 3,500-4,000 Crores Home Trade – Sanjay Agarwal (2000) – Around 300 Crores Scam Securities Scam – Ketan Parekh – Rs 1,500 Crores Fake Stamp Fraud – Abdul Karim Telgi - Around 30,000 Crores DSQ Software – Dinesh Dalmiya (2001) - Around 600 Crores IPO Scam – Karvy, Indiabulls (2004-05) Satyam – Ramalinga Raju (2009) – Around 12,000 Crores. 8 SEBI GUIDELINES Steps taken by SEBI to make investors aware of their rights : Steps taken by SEBI to make investors aware of their rights 9 SEBI GUIDELINES Slide 10: Security Market Awareness Campaign (SMAC) was started with a motto “An educated investor is a Protected investor.” “Invest with Knowledge” was the message spread by this campaign. Workshops Advertisements Educative material All India Radio – Information provided through AIR Programs frequently Dedicated Website – http://investor.sebi.gov.in Cautionary message on television. Internet based response System… 10 SEBI GUIDELINES Slide 11: 11 SEBI GUIDELINES Source : www.sebi.gov.in Issue of Securities : Issue of Securities Dos Read the Prospectus/ Abridged Prospectus and carefully note. Risk factors pertaining to the issue. Financials of the issuer. Object of the issue. Outstanding litigations and defaults, if any. IPO Grading. Basis of issue price. Business Overview. Background of promoters Instructions before making application Don'ts Do not fall prey to market rumors Do not go by any implicit/explicit promise made by any one. Do not invest based on bull run of the market index/scripts of other companies in same industry/issuer company. Do not bank upon the price of the shares of the issuer company to go up in the short run. 12 SEBI GUIDELINES Source : www.sebi.gov.in Investing in Derivatives : Investing in Derivatives Dos Go through all rules, regulations, bye-laws and disclosures made by the exchanges. Trade only through Trading Member (TM) registered with SEBI or authorized person of TM registered with the exchange. ensure that the contract note has been issued by the TM of the authorized person only Know your rights and duties vis-à-vis those of Trading Member. Go through details of Client-Trading Member Agreement. Don'ts Do not start trading before reading and understanding the Risk Disclosure Documents. Do not trade on any product without knowing the risk and rewards associated with it. 13 SEBI GUIDELINES Source : www.sebi.gov.in Collective Investment Scheme : Collective Investment Scheme Dos Before investing ensure that the entity is registered with SEBI. Read the offer document of the scheme especially the risk factors carefully. Check the viability of the project. Check and verify the background/expertise of the promoters. Ensure that the Collective Investment Management Company has the necessary infrastructure to carry out the scheme. Check the credit rating of the scheme and tenure of the rating. Check for the appraisal of the scheme and read the brief appraisal report. Read carefully the objects of the scheme. Don'ts Do not invest in any CIS entity not having SEBI registration. Do not get carried away by indicative returns. Do not invest based on market rumours. 14 SEBI GUIDELINES Source : www.sebi.gov.in Brokers and Sub-brokers : Brokers and Sub-brokers Dos Deal only with SEBI registered Brokers. Ensure that brokers have valid registration certificate Ensure that he is permitted to transact in the market. State clearly who will place orders on your behalf. Insist on client registration form to be signed by intermediary before commencing any operations Read terms and conditions before entering into a agreement Make sure you sign all the pages of the agreement Insist on valid contract notes for trades done each day. Insist on bill for every settlement Ensure that all the necessary details like broker’s name, trade time and number etc. are distinctly shown on a contract note.. Contd… 15 SEBI GUIDELINES Source : www.sebi.gov.in Brokers and Sub-brokers : Brokers and Sub-brokers Dos Contd… Insist on periodical statement of accounts. Issue cheque/drafts in the name of intermediary only. Ensure receipt of payment within 48 hours of payout In case of disputes, file written complaint to intermediary, Stock Exchage/SEBI within a reasonable time. Familiarize yourself with the rules, regulations and circulars issued by SEBI before carrying out any transaction. Give clear and unambiguous instructions to the broker / sub broker. Keep record of all the instructions given to brokers / Sub brokers. Keep track of your portfolio in your demat A/c on a regular basis. 16 SEBI GUIDELINES Source : www.sebi.gov.in Brokers and Sub-brokers : Brokers and Sub-brokers Don'ts Do not deal with unregistered intermediaries. Do not pay more than approved brokerage to the intermediaries Do not undertake deals for others Do not neglect to set out in writing, orders for higher value given over phone. Do not accept blank delivery instructions slip while meeting security pay-in obligations. Do not accept unsigned/duplicate contract note/confirmation memo. Do not accept contract note/confirmation memo signed by any unauthorised person. Do not delay payment/deliveries of securities to broker/ sub-broker. Do not get carried away by luring advertisements, if any. Do not be led by market rumours or get into shady transactions. 17 SEBI GUIDELINES Source : www.sebi.gov.in Investing in Mutual Funds : Investing in Mutual Funds Dos Read the offer document carefully before investing. Note that investments in Mutual Funds may be risky. Mention your bank account number in the application form. Invest in a scheme depending upon your investment objective and risk appetite. Note that Net Asset Value of a scheme is subject to change depending upon market conditions. Insist for a copy of the offer document/key information memorandum before investing. Note that past performance of a scheme is not indicative of future performance. Past performance of a scheme may or may not be sustained in future. Keep track of the Net Asset Value of a scheme, where you have invested, on a regular basis. Find out about the investment profile provided in portfolio disclosures which is available on half yearly basis. 18 SEBI GUIDELINES Source : www.sebi.gov.in Investing in Mutual Funds : Investing in Mutual Funds Don'ts Do not invest in a scheme just because somebody is offering you a commission or other incentive, gifts etc. Do not get carried away by the name of the scheme/Mutual Fund. Do not fall prey to promises of unrealistic returns. Do not forget to take note of risks involved in the investment. Do not hesitate to approach concerned persons and then the appropriate authorities for any problem. Do not deal with any agent/broker dealer who is not registered with Association of Mutual Funds in India (AMFI). Avoid herd mentality while buying / selling into mutual fund schemes. Do not leave out KYC details in your application forms. That will make the forms liable for rejection. Do not rush into making investments that do not match your risk taking appetite and investment goals. Investors should be wary of concentrating their mutual fund portfolio in one particular asset class and not diversifying across various types of scheme profiles. 19 SEBI GUIDELINES Source : www.sebi.gov.in Dealing in Securities : Dealing in Securities Dos Transact only through Stock Exchanges. Deal only through SEBI registered intermediaries. Complete all the required formalities of opening an account properly (Client registration, Client agreement forms etc). Ask for and sign “Know Your Client Agreement”. Read and properly understand the risks associated with investing in securities / derivatives before undertaking transactions. Assess the risk – return profile of the investment as well as the liquidity and safety aspects before making your investment decision. Ask all relevant questions and clear your doubts with your broker before transacting. Invest based on sound reasoning after taking into account all publicly available information and on fundamentals. Give clear and unambiguous instructions to your broker / sub-broker / depository participant. Be vigilant in your transactions. 20 SEBI GUIDELINES Source : www.sebi.gov.in Dealing in Securities : Dealing in Securities Don'ts Given the benefits of trading on stock exchange it is advisable to avoid off-market transactions. Do not deal with unregistered intermediaries. Do not fall prey to promises of unrealistic returns. Do not invest on the basis of hearsay and rumors; verify before investment. Do not forget to take note of risks involved in the investment. Do not be misled by rumours circulating in the market. Do not be influenced into buying into fundamentally unsound companies (penny stocks) based on sudden spurts in trading volumes or prices or non authentic favorable looking articles / stories. Do not follow the herd or play on momentum - it could turn against you. Do not be misled by so called hot tips. Do not try to time the market. Do not hesitate to approach the proper authorities for redressal of your doubts / grievances. 21 SEBI GUIDELINES Source : www.sebi.gov.in Slide 22: Questions….? 22 SEBI GUIDELINES Slide 23: 23 SEBI GUIDELINES You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
SEBI Guidelines Assignment brijesh45 Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 4041 Category: Education License: All Rights Reserved Like it (11) Dislike it (0) Added: June 22, 2010 This Presentation is Public Favorites: 10 Presentation Description No description available. Comments Posting comment... By: arjunmehta (7 month(s) ago) Hello sir, This is very good presentation which help me a lot in my study I request you to send me this ppt on this email ID. .arjunmehta3@gmail.com Saving..... Post Reply Close Saving..... Edit Comment Close By: rameshsainy (8 month(s) ago) please send me this ppt on my email id..... rameshsainy@gmail.com Saving..... Post Reply Close Saving..... Edit Comment Close By: brijesh45 (8 month(s) ago) plz give ur email id so can send u mail Regards Brijesh Saving..... Post Reply Close Saving..... Edit Comment Close By: mmgandhi (9 month(s) ago) Resp Sir, Thanks for the reply & co-operation. Pl mail the ppt at mmgandhi2011@gmail.com / gandhimanesh@yahoo.com I will use the ppt for the teaching purpose only. Prof Gandhi Saving..... Post Reply Close By: brijesh45 (9 month(s) ago) hv mailed you the ppt... plz chek n confirm Saving..... Edit Comment Close By: mmgandhi (9 month(s) ago) REsp Team Members, I, Asso Prof , working with C U Shah Commerce College, Ashram Road, Ahmedabad India , teach Accountancy, Taxation & Management at UG & PG . I request you pl to allow me free download the ppt on SEBI Guidelines by Dr Brijesh Deodhar & Rakhee Varsolkar or may mail at my address. Awaiting favourable reply to be helpful to the learners. Prof Gandhi Saving..... Post Reply Close By: brijesh45 (9 month(s) ago) Dear Sir.... Please give ur Email ID so can sent you the Presentation Saving..... Edit Comment Close loading.... See all Premium member Presentation Transcript By Brijesh Deodhar& Rakhee Varsolkar : By Brijesh Deodhar& Rakhee Varsolkar 1 SEBI GUIDELINES What is SEBI? : What is SEBI? SEBI is the regulator for the security Market in India. In 1988 the Securities and Exchange Board of India (SEBI) was established by the Government of India through an executive resolution, and was subsequently upgraded as a fully autonomous body on April 12, 1992 the Securities and Exchange Board Of India was constituted. It was constituted in accordance with the provisions of the Securities and Exchange Board Of India Act 1992. 2 SEBI GUIDELINES Preamble : Preamble “…To protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto” 3 SEBI GUIDELINES Functions of SEBI : Functions of SEBI The Board is responsible for the securing the interests of investors in securities and to facilitate the growth of and to monitor the securities market in an appropriate manner. To monitor and control the performance of stock exchange and derivative markets. Listing and monitoring the functioning of stock brokers, sub brokers, share transfer agents, bankers to an issue, trustees of trust deeds, registrars to an issue, merchant bankers, underwriters, portfolio managers, investment advisers and others associated with securities markets by any means. Monitoring and Controlling the functioning of venture capital funds and mutual funds. Forbid unjust and dishonest trade practices in the security markets and forbid insider trading in the security market. Undertake periodic audits of stock exchanges, mutual funds, individuals and self regulatory organizations associated with the security market. 4 SEBI GUIDELINES Why Investor’s Protection is important…! : Why Investor’s Protection is important…! 5 SEBI GUIDELINES Background : Background Investors are the backbone of the securities market. They determine the level of activity in the securities market and the level of activity in the economy. Many investors may not possess adequate expertise/knowledge to take informed investment decisions. May not be aware of the complete risk-return profile of the different investment options. may not be fully aware of the precautions they should take while dealing with market intermediaries and dealing in different securities. They may not be familiar with the market mechanism and the practices as well as their rights and obligations. 6 SEBI GUIDELINES Scams in Stock Market…! : Scams in Stock Market…! 7 SEBI GUIDELINES Some Leading Scams in India : Some Leading Scams in India Securities Scam – Harshad Mehta (1991-92) Floating Companies Scam – C R Bhansali (1992-96) UTI Scam – Unit 64 – Bailout Package of 3,500-4,000 Crores Home Trade – Sanjay Agarwal (2000) – Around 300 Crores Scam Securities Scam – Ketan Parekh – Rs 1,500 Crores Fake Stamp Fraud – Abdul Karim Telgi - Around 30,000 Crores DSQ Software – Dinesh Dalmiya (2001) - Around 600 Crores IPO Scam – Karvy, Indiabulls (2004-05) Satyam – Ramalinga Raju (2009) – Around 12,000 Crores. 8 SEBI GUIDELINES Steps taken by SEBI to make investors aware of their rights : Steps taken by SEBI to make investors aware of their rights 9 SEBI GUIDELINES Slide 10: Security Market Awareness Campaign (SMAC) was started with a motto “An educated investor is a Protected investor.” “Invest with Knowledge” was the message spread by this campaign. Workshops Advertisements Educative material All India Radio – Information provided through AIR Programs frequently Dedicated Website – http://investor.sebi.gov.in Cautionary message on television. Internet based response System… 10 SEBI GUIDELINES Slide 11: 11 SEBI GUIDELINES Source : www.sebi.gov.in Issue of Securities : Issue of Securities Dos Read the Prospectus/ Abridged Prospectus and carefully note. Risk factors pertaining to the issue. Financials of the issuer. Object of the issue. Outstanding litigations and defaults, if any. IPO Grading. Basis of issue price. Business Overview. Background of promoters Instructions before making application Don'ts Do not fall prey to market rumors Do not go by any implicit/explicit promise made by any one. Do not invest based on bull run of the market index/scripts of other companies in same industry/issuer company. Do not bank upon the price of the shares of the issuer company to go up in the short run. 12 SEBI GUIDELINES Source : www.sebi.gov.in Investing in Derivatives : Investing in Derivatives Dos Go through all rules, regulations, bye-laws and disclosures made by the exchanges. Trade only through Trading Member (TM) registered with SEBI or authorized person of TM registered with the exchange. ensure that the contract note has been issued by the TM of the authorized person only Know your rights and duties vis-à-vis those of Trading Member. Go through details of Client-Trading Member Agreement. Don'ts Do not start trading before reading and understanding the Risk Disclosure Documents. Do not trade on any product without knowing the risk and rewards associated with it. 13 SEBI GUIDELINES Source : www.sebi.gov.in Collective Investment Scheme : Collective Investment Scheme Dos Before investing ensure that the entity is registered with SEBI. Read the offer document of the scheme especially the risk factors carefully. Check the viability of the project. Check and verify the background/expertise of the promoters. Ensure that the Collective Investment Management Company has the necessary infrastructure to carry out the scheme. Check the credit rating of the scheme and tenure of the rating. Check for the appraisal of the scheme and read the brief appraisal report. Read carefully the objects of the scheme. Don'ts Do not invest in any CIS entity not having SEBI registration. Do not get carried away by indicative returns. Do not invest based on market rumours. 14 SEBI GUIDELINES Source : www.sebi.gov.in Brokers and Sub-brokers : Brokers and Sub-brokers Dos Deal only with SEBI registered Brokers. Ensure that brokers have valid registration certificate Ensure that he is permitted to transact in the market. State clearly who will place orders on your behalf. Insist on client registration form to be signed by intermediary before commencing any operations Read terms and conditions before entering into a agreement Make sure you sign all the pages of the agreement Insist on valid contract notes for trades done each day. Insist on bill for every settlement Ensure that all the necessary details like broker’s name, trade time and number etc. are distinctly shown on a contract note.. Contd… 15 SEBI GUIDELINES Source : www.sebi.gov.in Brokers and Sub-brokers : Brokers and Sub-brokers Dos Contd… Insist on periodical statement of accounts. Issue cheque/drafts in the name of intermediary only. Ensure receipt of payment within 48 hours of payout In case of disputes, file written complaint to intermediary, Stock Exchage/SEBI within a reasonable time. Familiarize yourself with the rules, regulations and circulars issued by SEBI before carrying out any transaction. Give clear and unambiguous instructions to the broker / sub broker. Keep record of all the instructions given to brokers / Sub brokers. Keep track of your portfolio in your demat A/c on a regular basis. 16 SEBI GUIDELINES Source : www.sebi.gov.in Brokers and Sub-brokers : Brokers and Sub-brokers Don'ts Do not deal with unregistered intermediaries. Do not pay more than approved brokerage to the intermediaries Do not undertake deals for others Do not neglect to set out in writing, orders for higher value given over phone. Do not accept blank delivery instructions slip while meeting security pay-in obligations. Do not accept unsigned/duplicate contract note/confirmation memo. Do not accept contract note/confirmation memo signed by any unauthorised person. Do not delay payment/deliveries of securities to broker/ sub-broker. Do not get carried away by luring advertisements, if any. Do not be led by market rumours or get into shady transactions. 17 SEBI GUIDELINES Source : www.sebi.gov.in Investing in Mutual Funds : Investing in Mutual Funds Dos Read the offer document carefully before investing. Note that investments in Mutual Funds may be risky. Mention your bank account number in the application form. Invest in a scheme depending upon your investment objective and risk appetite. Note that Net Asset Value of a scheme is subject to change depending upon market conditions. Insist for a copy of the offer document/key information memorandum before investing. Note that past performance of a scheme is not indicative of future performance. Past performance of a scheme may or may not be sustained in future. Keep track of the Net Asset Value of a scheme, where you have invested, on a regular basis. Find out about the investment profile provided in portfolio disclosures which is available on half yearly basis. 18 SEBI GUIDELINES Source : www.sebi.gov.in Investing in Mutual Funds : Investing in Mutual Funds Don'ts Do not invest in a scheme just because somebody is offering you a commission or other incentive, gifts etc. Do not get carried away by the name of the scheme/Mutual Fund. Do not fall prey to promises of unrealistic returns. Do not forget to take note of risks involved in the investment. Do not hesitate to approach concerned persons and then the appropriate authorities for any problem. Do not deal with any agent/broker dealer who is not registered with Association of Mutual Funds in India (AMFI). Avoid herd mentality while buying / selling into mutual fund schemes. Do not leave out KYC details in your application forms. That will make the forms liable for rejection. Do not rush into making investments that do not match your risk taking appetite and investment goals. Investors should be wary of concentrating their mutual fund portfolio in one particular asset class and not diversifying across various types of scheme profiles. 19 SEBI GUIDELINES Source : www.sebi.gov.in Dealing in Securities : Dealing in Securities Dos Transact only through Stock Exchanges. Deal only through SEBI registered intermediaries. Complete all the required formalities of opening an account properly (Client registration, Client agreement forms etc). Ask for and sign “Know Your Client Agreement”. Read and properly understand the risks associated with investing in securities / derivatives before undertaking transactions. Assess the risk – return profile of the investment as well as the liquidity and safety aspects before making your investment decision. Ask all relevant questions and clear your doubts with your broker before transacting. Invest based on sound reasoning after taking into account all publicly available information and on fundamentals. Give clear and unambiguous instructions to your broker / sub-broker / depository participant. Be vigilant in your transactions. 20 SEBI GUIDELINES Source : www.sebi.gov.in Dealing in Securities : Dealing in Securities Don'ts Given the benefits of trading on stock exchange it is advisable to avoid off-market transactions. Do not deal with unregistered intermediaries. Do not fall prey to promises of unrealistic returns. Do not invest on the basis of hearsay and rumors; verify before investment. Do not forget to take note of risks involved in the investment. Do not be misled by rumours circulating in the market. Do not be influenced into buying into fundamentally unsound companies (penny stocks) based on sudden spurts in trading volumes or prices or non authentic favorable looking articles / stories. Do not follow the herd or play on momentum - it could turn against you. Do not be misled by so called hot tips. Do not try to time the market. Do not hesitate to approach the proper authorities for redressal of your doubts / grievances. 21 SEBI GUIDELINES Source : www.sebi.gov.in Slide 22: Questions….? 22 SEBI GUIDELINES Slide 23: 23 SEBI GUIDELINES