Study on the Regulatory Response to Malpractices of Secondary Market Intermediaries
Keywords:
Intermediaries, market, regulations, response, Securities and Exchange Board of India, securitiesAbstract
An investor perceives that the investment in securities is subject to inherent market risk which may be combated with the assistance of market intermediaries. He trusts the integrity of the securities market and relies on the information placed before him to be authentic and reliable. He is confident of the expertise of market intermediaries and honestly expects that they are rendering professional services diligently without any malpractices. He strongly believes appropriate regulations are in place to
prevent malpractices and that securities market regulators have adequate powers to combat malpractices and discharge their duties and responsibilities efficiently and effectively to protect their interests. In this paper, the author discusses how the Securities and Exchange Board of India (SEBI) encounters the issue of secondary market malpractices of intermediaries through its regulations in general as well as specific to each category of market intermediaries.
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