Business Ethics and Corporate Governance, Second Edition

SECONDARY MARKET REFORMS

In the matter of reform of the secondary market, a market that is engaged in the buying and selling of old stocks and shares, SEBI has initiated the following measures:

1. Registration of intermediaries: SEBI has started the process of registration of intermediaries, such as the stockbrokers and sub-brokers under the provisions of the Securities and Exchange Board of India Act, 1992. The registration is made on the basis of certain eligibility norms such as capital adequacy, infrastructure etc. There has been much opposition and resistance to this step of SEBI. The capital market regulator has also made rules for making client-broker relationships more transparent, particularly with reference to the segregation of client ...