Sep 26, 2022
In today's Current Affairs editorial, we will discuss the New Account Settlement system introduced by Security Exchange Board of India (SEBI). Read this blogpost to enhance your UPSC CSE preparation and also to find the topic's relevance to the IAS syllabus.
For Prelims: Securities and Exchange Board of India (SEBI), Running Account Settlement’ or ‘Quarterly Settlement of Funds.
For Mains: The New Account Settlement System, Impact on Investors and Other Market Participants, SEBI’s New Guidelines, Financial sector development
Why SEBI has introduced new guidelines for the account settlement process? How it will differ from the previous system. Explain.
The new account settlement system for the stock broking industry, would be effective from October 1, as per the Securities and Exchange Board of India (SEBI) new guidelines in July 2022.
|Securities and Exchange Board of India (SEBI):|
It was constituted as a non-statutory body on April 12, 1988 through a resolution of the Government of India.
It was established as a statutory body in the year 1992.
The provisions of the Securities and Exchange Board of India Act, 1992 (15 of 1992) came into force on January 30, 1992.
Basic functions of the Securities and Exchange Board of India:
To protect the interests of investors in securities.
To promote the development of, and to regulate the securities market.
Also for matters connected therewith or incidental thereto"
SEBI can also regulate any money pooling scheme worth Rs. 100 cr. or more and attach assets in cases of non-compliance after the Securities Laws (Amendment) Act, 2014.
Read yesterday’s edition of Current Affairs on 19th ASEAN-India Economic Ministers’ Meeting, in case you missed reading it.
Also Read: National Income Accounting
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