Business Ethics and Corporate Governance, Second Edition

INTRODUCTION OF REGULATIONS

Governance initiatives through regulation have also made significant strides in the country. The Securities and Exchange Board of India (SEBI) has an ongoing programme of reforming the primary and secondary capital markets. SEBI was set up by the government in 1992 to counter the shortcomings found in the functioning of stock exchanges such as long delays, lack of transparency in procedures and vulnerability to price rigging and insider trading, and to regulate the capital market. SEBI, which has been made into a statutory body is authorized to regulate all merchant banks on issue activity, lay guidelines, supervise and regulate the working of mutual funds and oversee the working of stock exchanges in the country. ...