Regulatory Framework

 

Let’s learn about the regulatory framework in India. The Securities and Exchange Board of India (SEBI) is the regulatory authority established under the SEBI Act 1992 and is the principal regulator for Stock Exchanges in India. SEBI’s primary functions include protecting investor interests, promoting and regulating the Indian securities markets. All financial intermediaries permitted by their respective regulators to participate in the Indian securities markets are governed by SEBI regulations, whether domestic or foreign. Foreign Portfolio Investors are required to register with DDPs in order to participate in the Indian securities markets.

Various models exist for the regulation of derivative products across the globe. In some countries, all financial markets including those for commodity derivatives and securities derivatives are organized under one regulator. Certain countries keep money market operations exclusively under the Central Bank and all the other segments of financial markets under a separate regulator. Some countries have a very fragmented system of regulation with separate regulators for each class of product. In many jurisdictions, the market for non-standardized contracts or better known as the counter market or negotiated market is not under any specific regulators.

It includes the followings:

• Rules Governing commodity derivatives exchanges / participants
• Rules Governing Trading & Clearing on the Exchange
• Rules Governing Investor Grievances, Arbitration
• Implications of VAT

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