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Characteristics of Financial Instruments and Functions of SEBI

5 months ago
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by Anjali Yadav
  • Characteristics of Financial Instruments and Functions of SEBI
    Characteristics of Financial Instruments and Functions of SEBI

What are the characteristics of financial instruments ? State the functions of Securities and Exchange Board of India (SEBI).

Characteristics of Financial Instruments

Following are the main features of financial instruments:

1. Transferability: These are transferable instruments. They can be transferred easily from one person to other.

2. Liquidity: These instruments are easily liquiditable. They can be converted into cash easily.

3. Forward Trading Facility: These instruments provide safety from risks arising due to price and interest rate fluctuation.

4. Various Types: These instruments are classified in short-term, mid-term and long-term instruments.

5. Security Value: Financial instruments have security value. On the of it loan can be taken.

6. Direct Relationship between Risk and Return: Generally basis financial instruments having more risk provide more return.

7. Other Features: In addition to above following are some other features of financial instruments:

  1. These instruments have saleability.
  2. Tax deductions can be received.

Functions of SEBI

1. Registering and Regulatory Function:

  1. Regulating and controlling the business in stock exchange.
  2. Regulating acquisition of shares and take over of companies.
  3. Registering and regulating the functioning of brokers, sub-brokers, transfer agents, banks to issue, trustees of trust deeds, merchant bankers, portfolio managers, underwriters etc.
  4. Registering and regulating of working of capital funds and mutual funds.
  5.  Regulating self-regulatory organisations.

2. Preventive Functions:

  1. Preventing insider trading
  2. Preventing fraudulent and UTP relating to the securities markets.

3. Calling Information :

  1. Calling information for inspection, audits, mutual funds,
  2. Calling information from bank etc. which is under investigation enquiry.
  3. Calling from or finishing to agencies for the efficient discharge of its functions.

4. Other Functions: These are as under :

  1. Levying fees and charges. funds.
  2. Conducting research.
  3. Exercising such power which are delegated by the Central Government.
  4. Doing other prescribed functions.
  5. Making measures to undertake inspection documents of listed public company.

In executing above functions SEBI has certain powers of civil procedure code in respect of the following:

  1. Discovery and production of books of accounts and documents.
  2. Summoning and enforcing the attendance of persons.
  3. Issuing commissions for examining the witness.

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Anjali Yadav

इस वेब साईट में हम College Subjective Notes सामग्री को रोचक रूप में प्रकट करने की कोशिश कर रहे हैं | हमारा लक्ष्य उन छात्रों को प्रतियोगी परीक्षाओं की सभी किताबें उपलब्ध कराना है जो पैसे ना होने की वजह से इन पुस्तकों को खरीद नहीं पाते हैं और इस वजह से वे परीक्षा में असफल हो जाते हैं और अपने सपनों को पूरे नही कर पाते है, हम चाहते है कि वे सभी छात्र हमारे माध्यम से अपने सपनों को पूरा कर सकें। धन्यवाद..

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