Role of Stock Exchanges in the Secondary Securities Market
Keywords:
Exchange, market, SEBI. secondary, securitiesAbstract
The secondary securities market virtually functions through stock exchanges. This article analyzes the functions of the stock exchanges. Issuers are issuing securities to investors through the allotment of shares in the primary market that are subsequently traded in the secondary market by means of listing securities on the stock exchanges. SEBI and stock exchanges prescribe the regulatory framework for trading, clearing, and settlement of securities. The advancement of technologies brought significant changes to the roles of the stock exchanges. The trading platforms were accessible only on the stock exchanges in the olden days, whereas they are now accessible through the Internet anywhere in the country or world. Stock exchanges are an indicator of industrial development as well as a barometer of the economy. They are not only providing wider avenues for investment but also ensuring investment safety by establishing appropriate rules and regulations. SEBI and stock exchanges ensure investor protection in the securities market using effective supervision and control.
References
Sec.2 (j) The Securities Contracts (Regulation) Act, 1956. [Online] Available at https://www.indiacode.nic.in/bitstream/123456789/1644/1/A195642.pdf [Accessed on March 2024]
SEBI: http://www.sebi.gov.in/bylaws/ch1.pdf [Online] Available at [Accessed on March 2024]
Ibid., Act, Section 4.
Ibid., Act, Section 3.
Ibid., Act Sec 4 and 5.
Ibid., Act Sec 8.
Ibid., Act, Sec 9 and 10.
Ibid., Act, Sec 11.
Section 40 (1) of the Companies Act 2013.
Sec 21 of the Securities Contracts (Regulation) Act, 1956.
Ibid., Act, Sec.22A.
Ibid Act, Sec.22F and The Securities Laws (Amendment) Act, 2004.
(1970) 3 SCC 5941).
MANU/SC/0023/1960.
Ibid Act., Sec 13,14, and 18.
MANU/SC/0162/1992.
Sec 40 of the Companies Act 2013.
Sec.17 of The Securities Contracts (Regulation) Act, 1956. [Online] Available at https://indiankanoon.org/doc/1175973/#:~:text=(1)Subject%20to%20the%20provisions,not%20been%20declared%20to%20apply [Accessed on March 2024]
