SEBI and Capital Markets
The Securities and Exchange Board of India (SEBI) is the main watchdog of the Indian capital market. Imagine a cricket match where SEBI acts as the umpire. It ensures that all players follow the rules and that the game is fair for everyone. A capital market is a financial market where long-term funds like shares and bonds are bought and sold. This includes the stock market and the bond market. SEBI was first set up in 1988.
Concepts (3)
A mutual fund collects money from many small investors and invests it in various stocks or bonds. Professional fund managers handle this money. SEBI regulates these funds to ensure they do not take unnecessary risks with people's savings.
A mutual fund collects money from many small investors and invests it in various stocks or bonds. Professional fund managers handle this money. SEBI regulates these funds to ensure they do not take unnecessary risks with people's savings. It requires them to disclose where they are investing the money every month.
An IPO is when a private company sells its shares to the public for the first time. This helps the company raise a lot of money to grow. Once the IPO is over, the company becomes a 'public' company and its shares start trading on the stock exchange.
An IPO is when a private company sells its shares to the public for the first time. This helps the company raise a lot of money to grow. Once the IPO is over, the company becomes a 'public' company and its shares start trading on the stock exchange. Example: When LIC launched its IPO in 2022, millions of Indians bought its shares for the first time.
This is the illegal act of buying or selling shares using information that is not yet public. If a manager knows their company is about to fail and sells their shares before the news breaks, it is insider trading.
This is the illegal act of buying or selling shares using information that is not yet public. If a manager knows their company is about to fail and sells their shares before the news breaks, it is insider trading. SEBI uses advanced technology to track suspicious trading patterns and punish such individuals to keep the market fair.
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