1. Chapter 12 - Stock Exchange

2. aaj market upar gaya
aaj market gir gaya

3. INDEX 1 INTRODUCTION 2 IMPORTANT TERMS 3 SECURITY MARKET 4
STOCK EXCHANGE 5
SEBI
CONTROL SLIDE
HOME
EXIT

4. INTRODUCTION
The very first stock exchange in Mumbai was started by four Gujaratis and one Parsi who would gather under the Banyan tree in front of Mumbai’s town hall.
The location of these meetings started changing as number of people increased.
The increase in popularity resulted in formation of “The Native Share & Stock Brokers Association” in 1875 which is now famously known as “Bombay Stock Exchange”.
For most of us, Bombay Stock Exchange and share market is one and the same. However, BSE is just one part of the share market.

5. INTRODUCTION
Stock market fascinates everyone because people have false assumption that it multiplies money at very fast rate. Therefore, it is very important to have the knowledge of stock market and stock exchanges before you decide to join the mass and jump into it.
Difference between stock exchange and stock market
Stock exchange is a place where securities are listed and are bought and sold.
Stock market is a wider term as compared to stock exchange. It comprises of various stock exchanges (like BSE, NSE, Ahmedabad stock exchange) etc, investors, companies and brokers.

6. IMPORTANT TERMS 1 STOCK BROKER 2 LISTING 3 TRADER (JOBBER) 4 BULL 5
BEAR 6
CONTRACT NOTE 7
INSTITUTIONAL INVESTOR 8
STAG 9
TRADING RING 10
AUCTION

7. IMPORTANT TERMS STOCK BROKER: Common man can trade through a member.
Stock broker is a member of stock exchange.
They earn brokerage / commission on each transaction.
Individuals and companies can be a broker.
Eg. Sharekhan, Angel Broking, Ventura Securities, Motilal Oswal etc.

8. IMPORTANT TERMS LISTING:
Listing refers to entering the name of company’s securities in the register of stock exchange. Once a company is listed, people can buy / sell shares of those companies online.

9. IMPORTANT TERMS TRADER (JOBBER)
Jobber is a trader in stock exchange who carries out speculative trades in his own name.
Jobbers square off their position on the same day and do not carry forward their holding to the next day.
Jobber is not allowed to deal with investors directly.

10. IMPORTANT TERMS BUY 100 SHARES SELL 100 SHARES
For your understanding: “square off” means to close the transaction.
E.g., if a jobber has bought 100 shares in the morning, then before end of the day the jobber will sell off those 100 shares and thus square off transaction.
BUY 100 SHARES
SELL 100 SHARES

11. IMPORTANT TERMS
BULL
A trader who expects the market / shares to perform well and expects that the share prices will rise.
Rakesh Jhunjhunwala is called the “bull” of the Indian markets.

12. IMPORTANT TERMS
BEAR
A trader who expects that the market / shares will not perform and the share prices will go down.

13. BEAR
BULL

14. IMPORTANT TERMS CONTRACT NOTE
The contract note is a document which acts as evidence for purchase or sale of security.
For every trade, the broker sends a contract note clearly specifying the date and type of transaction, securities name, number of securities traded, rate, brokerage and taxes.
A broker has to compulsorily send a contract note to his client by end of the day.

16. IMPORTANT TERMS INSTITUTIONAL INVESTOR
Institutions such as banks, UTI, mutual funds, LIC, GIC, etc who invest in shares and securities are referred to as institutional investors.
These investors carry out transaction in huge volumes on stock exchange.

17. IMPORTANT TERMS
STAG
Stag is a person who prefers to invest in primary market rather than secondary market.

18. IMPORTANT TERMS TRADING RING DEMAT TRADING RING
The trading of securities takes place on the floor of stock exchange which is called as trading ring.
The usual trading hours are between 12 noon to 2.30 p.m. Trading hours for Bombay Stock Exchange is from 9.15 AM to 3.30 PM.
Note: Trading ring used to exist when shares were traded offline i.e. physical mode. All the stock brokers used to gather on the floor of stock exchange to transact their business. However now, after demat of shares, trading is done online.
TRADING RING
DEMAT

19. IMPORTANT TERMS AUCTION
Auction is a method in which buyers bid for shares which are available for auction.

20. SECURITY MARKET
Security market is divided into primary market and secondary market.
SECURTIY MARKET
PRIMARY MARKET
SECONDARY MARKET
SECURITIES DIRECTLY ISSUED BY COMPANY TO INVESTORS
SECURITIES ALREADY ISSUED BY COMPANY TRADED
E.G. STOCK EXCHANGE

21. SECURITY MARKET
Primary market – Primary market is that part of market where the securities are issued for the first time. Thus, companies directly sell the securities to investors. E.g. Initial Public Offer. The buyer is an investor whereas seller is a company.
Secondary market – Secondary market is that part of the capital market where already issued securities such as shares, bonds, debentures, etc are traded. The securities once issued in the primary market are then traded in the stock market. The buyer and seller, both, are investors.

22. STOCK EXCHANGE 1 MEANING 2 MANAGEMENT 3 ORGANIZATION 4 MEMBERSHIP 5
MEMBERSHIP FEES 6
ROLE OF STOCK EXCHANGE 7
FUNCTIONS OF STOCK EXCHANGE 8
BSE 9
NSE 10
PROCEDURE FOR TRADING

23. MEANING
Stock exchange is a market place which provides organized services to trade in listed securities such as equity shares, preference shares, bonds, debentures, etc. Stock exchange facilitates buying and selling of securities.
As per Securities Contract Act, 1956 the term stock exchange is defined as “an association, organization or body of individuals, whether incorporated or not, established for the purpose of assisting, regulating and controlling of business in buying, selling and dealing in securities”.
As per the Husband and Dockerary, “Stock exchanges are privately organized markets which are used to facilitate trading in securities”.

24. MANAGEMENT
The overall activities of stock exchange are managed by the executive committee.
The composition and powers of the executive committee differ from exchange to exchange.
The executive committee is supported by various other committees such as Advisory Committee, Listing Committee, Default Committee etc.
The members of the executive committee are usually selected for a period of one year and retire by rotation.

25. MANAGEMENT Sr No City Called as 1 Mumbai Governing body 2 Kolkata
This executive committee is termed in different cities as under:
Sr No
City
Called as 1
Mumbai
Governing body 2
Kolkata
Committee of Management 3
Most of other cities
Council of Management

26. ORGANIZATION
The Securities Control Act, 1956 provides that a stock exchange may be:
A voluntary non-profit organization
Company limited by guarantee
Company limited by shares
This Act also provides for rules and regulations for functioning of stock exchange

27. MEMBERSHIP
The membership of stock exchange is open to the citizens of India. There are eligibility criteria’s which need to be fulfilled before an individual can be given membership. The criteria are:
The person should be financially sound. He shouldn’t be bankrupt, insolvent or fraudster
Citizen of India
The person should not be a director, partner or employee of a company which deals with securities.
At least 20 years of age

28. FEES FOR MEMBERSHIP
The membership fee is bifurcated in deposit and entrance fees. The fees are as under:
Entrance fees – Rs. 5,000
Securities deposit – Rs. 20,000
A person is granted membership only after a detailed enquiry is conducted. All the members are issued membership card.
Note: As per the website of BSE, the security deposit amount is now Rs.10,00,000 (Rupees Ten Lakhs only).

30. ROLE IN CAPITAL MARKET
Capital markets are financial markets for buying and selling of long term equity or debt securities. In other words, capital market may be defined as a market place where potential borrowers of long term funds are brought in contact with potential lenders. Capital market includes primary market, secondary market, financial institutions and everyone else engaged in the business of providing capital funds.

31. ROLE IN CAPITAL MARKET [ ROLE of Stock Exchange]
ROLE IN PROMOTING CAPITAL FORMATION
ECONOMIC DEVELOPMENT
OPTIONS /FLEXIBILITY FOR INVESTMENT
SAVINGS MOBILIZATION
LIQUIDITY OF INVESTMENT
ENHANCING VALUE OF SECURITIES

32. ROLE IN PROMOTING CAPITAL FORMATION
ROLE IN CAPITAL MARKET
ROLE IN PROMOTING CAPITAL FORMATION
Stock exchange facilitates trading in secondary market. Secondary market creates the habit of saving, investing and risk taking among the investing class. They gain knowledge and get accustomed to investing in shares. Hence, they are not hesitant to invest surplus funds in primary market. The money raised through primary market is used for the production of various goods and services useful for the society.
Note – Investing in primary markets will lead to capital formation. Investing in secondary would mean mere transfer of funds from one investor to another. Company does not get funds of secondary market.

33. OPTIONS /FLEXIBILITY FOR INVESTMENT
ROLE IN CAPITAL MARKET
OPTIONS /FLEXIBILITY FOR INVESTMENT
Stock exchanges provide a wide range of investment options to investors. Investors can invest in various products like equity, debt, derivatives, commodities etc. They can also easily shift their investment from one product to another.

34. LIQUIDITY OF INVESTMENT
ROLE IN CAPITAL MARKET
LIQUIDITY OF INVESTMENT
Stock exchanges provide liquidity. Investors can sell any of their investments in securities at any time during trading hours. The online settlement of dematerialized securities enables the investors to receive funds within 2 working days after selling the securities.

35. ROLE IN CAPITAL MARKET
ECONOMIC DEVELOPMENT
Stock exchange facilitates effective mobilization of savings. This money is invested in national asset which leads to employment generation. Besides, funds are easily and readily available for development and expansion of companies. This results in economic development.

36. ROLE IN CAPITAL MARKET
SAVINGS MOBILIZATION
Stock exchanges provide organized market for individuals as well as institutional investors. There are proper rules and regulations to ensure investor's protection. This gives confidence even to small investors. Stock exchanges attract small savings especially of large number of investors in the capital market.

37. ENHANCING VALUE OF SECURITIES
ROLE IN CAPITAL MARKET
ENHANCING VALUE OF SECURITIES
Getting shares listed on stock exchange helps in increasing goodwill of companies. The tag “listed company” adds to the reputation.

38. FUNCTIONS OF STOCK EXCHANGE
Stock exchange is a market place which provides organized services to trade in listed securities such as equity shares, preference shares, bonds, debentures, etc. Stock exchange facilitates buying and selling of securities. The stock exchange plays an important function in development of economy. The functions of stock exchange are as follows:

39. FUNCTIONS OF STOCK EXCHANGE
SERVES AS ECONOMIC BAROMETER
PROTECTING INVESTOR’S INTEREST
CAPITAL UTILIZATION
ASCERTAINING FAIR VALUE OF SECURITIES
INVESTMENT’S LIQUIDITY
FIP-SCAM
MOTIVATION TO MANAGEMENT
FORMATION OF CAPITAL

40. FUNCTIONS OF STOCK EXCHANGE
Secondary market supports the primary market by creating the habit of saving and investing. It encourages saving class to invest in the securities offered in the primary market. The money raised is used for the production of various goods and services useful for the society.
FORMATION OF CAPITAL

41. FUNCTIONS OF STOCK EXCHANGE
Stock exchange provides a ready market for purchase and sale of securities. It provides liquidity to the investors who can buy and sell securities at any time during the trading hours. On account of dematerialization of securities, investors can receive funds within 2 working days after selling the securities.
INVESTMENT’S LIQUIDITY

42. FUNCTIONS OF STOCK EXCHANGE
The Securities Control Act, 1956 provides for protecting the interest of the investors. The stock exchange ensures that these rules and regulations are strictly followed to protect the interest of the investors. Also, the executive committee makes rules and regulations for fair dealings and investor protection.
PROTECTING INVESTOR’S INTEREST

43. FUNCTIONS OF STOCK EXCHANGE
Generally, the development or maturity of stock exchange is linked to development of the economy. If a stock exchange is more developed, it can be said that the country is on the path of development. Hence, we can say that stock exchange serves as an economic barometer.
SERVES AS ECONOMIC BAROMETER

44. FUNCTIONS OF STOCK EXCHANGE
Stock exchanges channelize savings of the people into industry. As a result, ideal savings of the people flow from unproductive to productive purposes. Thus, stock exchanges ensure best utilization of capital.
CAPITAL UTILIZATION

45. FUNCTIONS OF STOCK EXCHANGE
Stock exchange is useful for the evaluation of securities. The prices of securities on stock exchange are determined by the forces of demand and supply. Thus, investors know the true worth of any security. These values are widely publicized through Newspaper and TV.
ASCERTAINING FAIR VALUE OF SECURITIES

46. FUNCTIONS OF STOCK EXCHANGE
The prices of securities are shown as a strip at the bottom of screen (“tickr”) on various news channels like CNBC, NDTV, ET Now etc. In business newspapers, there is one full page where share prices are mentioned.
ASCERTAINING FAIR VALUE OF SECURITIES

47. FUNCTIONS OF STOCK EXCHANGE
A listed company has to comply with various rules & regulations and submit various reports to stock exchange on a periodic basis. If it fails to do so, the shares of the company may get delisted. As a result, management of the company is more cautious, more transparent and they manage the company effectively.
Note: Few companies whose shares have been delisted are A.P.T.Yarns Ltd, Aachal Alloys Ltd, Acme Industries Ltd etc.
MOTIVATION TO MANAGEMENT

49. BOMBAY STOCK EXCHANGE (BSE)1
INTRODUCTION 2
FORM OF ORGANIZATION 3
RULES AND REGULATIONS 4
INFORMATION PROVIDED 5
BOLT 6
SENSEX 7
STRATEGIC OBJECTIVES 8
BSE Webx.co.in 9
GROWTH 10
MANAGEMENT OF STOCK EXCHANGE

50. BSE
INTRODUCTION
Bombay Stock Exchange (BSE Ltd) is the first stock exchange in Asia, established in the year It was formerly known as “The Native Share & Stock Exchange Association”. It is also the first stock exchange to be granted a permanent recognition in 1956 under the Securities Contract Regulation Act, The recognition was granted in year 1956.

51. BSE FORM OF ORGANIZATION
The BSE was an Association of Persons (AOP) but was incorporated into a company in 2005.
Date of Certificate of Incorporation – 8th August, 2005
Date of Certificate of Commencement of Business – 12th August, 2005
The name of BSE is now ‘Bombay Stock Exchange Limited’.

52. BSE RULES AND REGULATIONS
BSE Ltd. had formulated a set of rules and regulations for the securities market before the actual legislations were enacted. It had also laid down best practices for securities market which were later on adopted by other stock exchanges. 

53. BSE INFORMATION PROVIDED
BSE provides market for trading in equity, debt (corporate and government securities) and derivatives in India. The company offers information products such as:
Market data on equity, derivatives, corporate bonds and indices;
Corporate data including financial results, announcements, shareholding pattern; and historical data.

54. BSE
BOLT
BSE adopted computerized system and screen based trading to facilitate transfer of securities. This system is called as Bombay On Line Trading System (“BOLT”).

55. BSE
SENSEX
Sensex is the index of BSE. Sensex is a weighted average of the market prices of 30 well-established and financially sound companies. These companies are representative of various industries of Indian economy. BSE Sensex is also called as BSE 30.

56. BSE STRATEGIC OBJECTIVES
Dealing in securities to be undertaken on fair basis
Promoting and following fair practices in securities transaction
Protecting investors and members interest
OBJECTIVES
Establishing a market wherein buyers and sellers can come together effectively
Mobilizing resources effectively from those who have it to those who need it

57. BSE
BSE Webx.co.in
BSE has introduced a centralized online trading system called BSE Webx.co.in. This system was set up in February The main advantage of this system is investors can register themselves with brokers and can undertake transactions from anywhere. In order to buy / sell shares, investors need to know the script code of companies. BSE has specified a code for every listed company. E.g. Infosys Tech – BSE Code –

58. BSE
GROWTH
BSE is one of the 8 largest stock exchanges in the world on the basis of transaction volume. In India, it is present in 417 cities and town. BSE system has very highly secured and the clearing and settlement functions have ISO 9001:2000 certification.

59. BSE MANGEMENT OF STOCK EXCHANGE
The BSE limited being a company has board of directors. The board contains professionals and experts of various fields. The BSE Limited also has an executive committee who manages the overall activities of the stock exchange. The executive committee is supported by various other committees such as Advisory Committee, Listing committee, etc.

61. NATIONAL STOCK EXCHANGE (NSE)
National Stock Exchange of India (NSEI) was established in November It has developed into a sophisticated electronic market where the trades take place on computers through NSEI dealer.
The features of NSE are as follows:
NSE is a company limited by shares. The promoters of this company are IDBI, ICICE, LIC, GIC and its subsidiaries, commercial banks and SBI capital market limited.
NSE is an all India level stock exchange. The trading is done through NSEI dealer.
NSE is the first stock exchange in the world to use communication technology for trading. The trading system is screen based and is completely computerized.

62. NATIONAL STOCK EXCHANGE (NSE)
The investors can trade in securities from anywhere in the world through direct satellite link (internet).
NSE provides transparency as the investors can check the prices for each transaction.
NSE has tried to adopt internationally accepted standards and it has brought Indian financial market close to international markets.
The settlement takes place on T+2 days, i.e., trade date plus two working days. Thus, the money is received within 2 days from the date of sale.
The index of NSE is called “The broader 50 share – NIFTY”. NIFTY is a weighted average of the market prices of 50 well-established and financially sound companies.

63. PROCEDURE FOR TRADING
In olden days, securities were traded physically on the stock exchange. This was a time consuming process. However, in the early 2000’s, the major stock exchanges developed a sophisticated electronic system where the trades started taking place on computers through internet.
In order to buy securities in primary market, investor needs to open a demat account and apply for shares by way of an application form issued by the issuer company.

64. GETTING UNIQUE CLIENT NUMBER COMPLETING A CONTRACT NOTE
PROCEDURE FOR TRADING
The procedure for trading in securities on stock exchange (i.e. secondary market) is as follows:
OPENING DEMAT ACCOUNT
SELECTION OF BROKER
GETTING UNIQUE CLIENT NUMBER
COMPLETING A CONTRACT NOTE
PLACING OF THE ORDER
ENETRING ISIN OF SCRIP
SETTLEMENT

65. PROCEDURE FOR TRADING OPENING DEMAT ACCOUNT
The investor should open a demat account. This is because the securities will be held in the demat account.

66. PROCEDURE FOR TRADING SELECTION OF BROKER
An investor can buy/sell securities only through the authorized brokers. The investor needs to select the broker through whom the trades will be placed.

67. PROCEDURE FOR TRADING GETTING UNIQUE CLIENT NUMBER
Every investor has a unique ID. The trades are tracked through this ID. This client ID is given by the depository.

68. PROCEDURE FOR TRADING ENTERING ISIN OF SCRIP
Each security has its own unique 12 digit ISIN. It is the identification number for the security. The investor has to mention ISIN of security while placing the trade.

69. PROCEDURE FOR TRADING PLACING OF THE ORDER
Investor has to place and confirm order of securities he intends to buy or sell.

70. PROCEDURE FOR TRADING COMPLETING A CONTRACT NOTE
For every trade, the broker sends a contract note to the client.

71. PROCEDURE FOR TRADING SETTLEMENT OF TRANSACTION
The settlement is a two way process. For purchase transaction, money is paid and the security is received and vice-versa for sales. The settlement on BSE and NSE takes place on T+2 days, i.e., in two working days after the transaction days.

72. TRADING PROCEDURE OF SECURITIES
PROCEDURE FOR TRADING
TRADING PROCEDURE OF SECURITIES
PRIMARY MARKET
SECONDARY MARKET
Make an application to the company in the printed form as provided
1. Opening demat account
2. Selection of broker
3. Getting Unique Client No.
4. Entering ISIN of Scrip
5. Placing of the order
6. Contract note
7. Settlement

74. SEBI 1
INTRODUCTION 2
OBJECTIVES 3
FUNCTIONS 4
POWER

75. INTRODUCTION
The securities market in India is regulated by the Securities and Exchange Board of India (SEBI). It was setup in April It became a statutory body in 1992 by passing a SEBI Act 1992 in the Indian Parliament. SEBI is headquartered in Mumbai. Apart from Mumbai, it has offices in Kolkata, New Delhi and Chennai.
Due to inadequate monitoring over the securities market in India prior to set up of SEBI, there were several malpractices. Manipulation of market price, delay in allotment of securities, insider trading, spreading rumors etc are few such examples. This led to the formation of SEBI. SEBI has now been established as market watchdog.

76. OBJECTIVES PROTECTING THE INVESTORS PROHIBITING INSIDER TRADING
REGULATE THE INTERMEDIARIES
FAIR DEALING

77. PROTECTING THE INVESTORS
OBJECTIVES
PROTECTING THE INVESTORS
The capital market has no meaning if there are no investors. SEBI protects the investors from wrong information, against price manipulation, risk of delivery and payment, etc.
SEBI

78. PROHIBITING INSIDER TRADING
OBJECTIVES
PROHIBITING INSIDER TRADING
The promoters, directors and others who may have knowledge of secret information may unethically use it for purchasing or selling securities of the company to make windfall profit. This hurts the interests of the general investors. Many steps have been taken by SEBI to check inside trading.

79. OBJECTIVES
Mr. Amit Rao is the CFO of a leading automobile company. The company had performed exceedingly well for that particular year. The profits have grown 50% as compared to last year. The company is going to publish the result in the newspaper within two days. On the basis of strong performance, the share price of company is expected to grow 20%. Mr Amit decided to buy 10,000 shares of the company today so that he enjoys 20% appreciation within a period of two days. Mr. Amit has information which the general public is not aware and thus can benefit from it. This is called as insider trading.
BOOK SHARES . THERE IS AN EXPECTED 20% APPRECIATION IN THE MARKET RATES TOMORROW! –MR. AMIT, CFO

80. REGULATE THE INTERMEDIARIES
OBJECTIVES
REGULATE THE INTERMEDIARIES
SEBI controls and regulates the activities of intermediaries such as brokers, sub-brokers, share transfer agents, etc for smooth functioning of capital market.
SEBI

81. OBJECTIVES
FAIR DEALING
SEBI was set up to promote and protect the interest of investors. It was necessary to set up a body to look after the interest of investors. SEBI ensures fair dealing of security.

82. FUNCTIONS
To protect the interests of investors by imparting proper investor education, resolving investor complaints, punishing for malpractices, etc.
To regulate and control the business on stock exchanges and other security markets.
To regulate the functioning of intermediaries such as stock brokers, sub-brokers, share transfer agents, merchant bankers and other intermediaries operating on the securities market.
SEBI

83. FUNCTIONS
To register and regulate the working of mutual funds including UTI (Unit Trust of India).
To regulate mergers, takeovers and acquisitions of companies in order to protect the interest of investors.
To prohibit fraudulent and unfair practices in securities markets.

84. FUNCTIONS
To issue guidelines to companies regarding issue of securities for raising capital.
To conduct inspection, inquiries & audits of stock exchanges & intermediaries and to take suitable remedial measures wherever necessary.
To restrict insider trading activity.

85. FUNCTIONS To promote and regulate self-regulatory organizations.
To register and regulate the working of venture capital funds.
Conducting inspection, calling for information, conducting inquires and audits of stock exchange and market intermediaries.

86. POWERS OF SEBI SBI-IPO-ISSUE ISSUE OF SHARES
POWER TO FRAME RULES AND REGULATIONS
IMPOSE MONETARY PENALTIES
OBSERVES AND REGULATES INSIDER TRADING
BUSINESS OF STOCK EXCHANGES
SBI-IPO-ISSUE
ISSUING LICENSE
SCRUTINIZE AND INSPECT

87. SCRUTINIZE AND INSPECT
POWERS OF SEBI
SCRUTINIZE AND INSPECT
SEBI has wide powers to scrutinize and inspect the transactions and records of stock exchange and intermediaries dealing in securities.

88. BUSINESS OF STOCK EXCHANGES
POWERS OF SEBI
BUSINESS OF STOCK EXCHANGES
SEBI can amend the bye laws of the stock exchanges. It can also ask for information from capital market participants (i.e. company, brokers, banks, stock exchanges etc) whenever required. It can also ask for periodical returns of stock exchanges.

89. IMPOSE MONETARY PENALTIES
POWERS OF SEBI
IMPOSE MONETARY PENALTIES
If stock exchanges or intermediaries dealing in securities market violate rules and regulations of SEBI, it can impose monetary penalty and suspend their working.

90. POWERS OF SEBI
ISSUE OF SHARES
In case stock market is bearish i.e. it is falling, SEBI can request companies to list its shares and thereby play a supporting role.

91. POWER TO FRAME RULES AND REGULATIONS
POWERS OF SEBI
POWER TO FRAME RULES AND REGULATIONS
SEBI has the power to frame rules and regulations with respect to transactions in the capital market. It can also issue guidelines to intermediaries and frame specific rules for investor protection. It can ask stock exchanges to maintain prescribed records and can call for periodical returns.

92. OBSERVES AND REGULATES INSIDER TRADING
POWERS OF SEBI
OBSERVES AND REGULATES INSIDER TRADING
SEBI frames rules and regulations for insider trading. It can also scrutinize insider trading deals of companies and levy penalty, if found guilty.

93. POWERS OF SEBI SEBI It can issue license to dealers in specific areas.
ISSUING LICENSE
It can issue license to dealers in specific areas.
SEBI