Correct option is B
The correct answer is (b) "T + 6" to "T + 3"
Explanation:
The Securities and Exchange Board of India (SEBI) announced a major reform in June 2023, reducing the time taken for listing shares in public issues from the existing "T + 6" to "T + 3" on a voluntary basis starting September 1, 2023, and mandatory from December 1, 2023.
Information Booster:
- The allotment of shares takes place on T+1 day, one day after the bidding ends.
Securities and Exchange Board of India (SEBI)
- Statutory body regulating India's securities markets.
- Purpose: Protects investors, promotes market development, and ensures fair and transparent trading practices.
Historical Background:
- Pre-SEBI Regulation: The Controller of Capital Issues (CCI) regulated the securities market under the Capital Issues (Control) Act, 1947.
- Establishment:SEBI was formed in 1988 as a non-statutory body to address market malpractices and investor grievances.
- Statutory Powers:
- Granted under the SEBI Act, 1992, following the Harshad Mehta scam, to regulate and oversee the securities market more effectively.
Objectives:
- Protect investor interests by preventing fraud and unfair trade practices (e.g., insider trading).
- Ensure market transparency and fairness.
- Promote growth and development of the securities market.
- Maintain a balanced regulatory framework for both corporate participants and investors.
Organizational Structure:
- Governing Body: SEBI is managed by a Board of Directors comprising:
- 1 Chairman (nominated by the Government of India).
- 2 Members from the Union Ministry of Finance.
- 1 Member representing the Reserve Bank of India (RBI).
- 5 Members nominated by the Government of India (at least 3 full-time members).
- Authority: The Central Government can remove members under specific conditions (e.g., insolvency, unsound mind, or criminal conviction).
English
80 Questions
160 Marks
60 Mins
