The capital market or securities market are important for the growth and development of economies. The maturity of an economy are decided based on the robustness of capital market of an economy. The main function of the capital markets is to enable flow of capital. Capital market help in transfer of idle savings and resources from one to others who have a productive need for them. Capital market provide channels for allocation of savings to investments and thereby decouple these two activities.
The capital market has two segments, the new issues (primary) market and the stock (secondary) market. In the primary market new securities are sold and in the secondary market securities previously issued are dealt. Public limited companies or Government agencies issues the securities in primary market, either through the public issue or through private placement route. There are majorly two major types of issuers of securities,one is the corporate entities who issue mainly debt and equity instruments and other one is the government (central as well as state) who issue debt securities (dated securities and treasury bills). After the new securities are issued in the primary market they are traded in the stock (secondary) market.
The Regulatory Body Securities Exchange Board of India (SEBI) have jurisdiction over corporate in the issuance of capital and transfer of securities and intermediaries and persons associated with the securities market. The capital market is governed by various regulations enacted by the competent legislative body and regulating bodies. SEBI is regulating its functioning through various regulations.
Due to complexity of legislation, rules, and regulations (viz. Securities and Exchange Board of India Act, 1992, Securities Contracts (Regulation) Act, 1956, Depositories Act, 1996, Securities Contracts (Regulations) Rules, 1957, SEBI (Depositories and Participants) Regulations 1996, Regulations Governing Issue and Listing of Securities, Regulations Governing Intermediaries etc.), a Company is expected to be complied with these legislation, rules, and regulations while its violations leads to severe penalties.
- Transaction Advisory
- Public Issue, Listing and Compliance Management
- Audit & Certification
- Intermediary Registration
- Appearance before Regulators
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