What is the rule of capital market?

What is the rule of capital market?

The Capital Market Law articles are formulated to regulate and develop the capital market, regulate the issuance of securities and supervise its transactions as well as supervising authorized persons licensed by CMA. In addition, it protects investors and citizens from illegal practices.

Which lawful authority regulates the capital market?

The Securities and Exchange Board of India (SEBI) is the regulatory authority established under the SEBI Act 1992 and is the principal regulator for Stock Exchanges in India. SEBI’s primary functions include protecting investor interests, promoting and regulating the Indian securities markets.

What is capital Marketing Authority?

Investigations. The Capital Markets Authority (CMA) is responsible for ensuring observance of its laws as well as the integrity of the capital markets.

What are the functions of capital market authority?

The Capital Markets Authority (CMA) was set up in 1989 as a statutory agency under the Capital Markets Act Cap 485A. It is charged with the prime responsibility of both regulating and developing an orderly, fair and efficient capital markets in Kenya with the view to promoting market integrity and investor confidence.

What are the government regulations affecting capital market?

Securities and Exchange Board of India (SEBI) has full autonomy and authority to regulate and develop capital market. The government has framed rules under securities controls act, the SEBI act and depositories act. SEBI’s functions include: Regulating the business in stock exchange and any other securities markets.

What are the reasons for regulation of capital market?

There are three core objectives of securities regulations and they include:

• To ensure investor’s protection.
• Ensuring that market are fair, efficient and transparent; and.
• The reduction of systemic risk.

What are the benefits of capital market?

What are the benefits of investing within the Capital Market?

• Savings.
• Wealth or Capital gain.
• Securities as Collateral.
• Liquidity.
• Bonds pay an interest income and shares pay dividends income.

What is capital market what are its objectives?

The capital market plays a vital role in mobilising the savings and making them available to the enterprising investors. The primary capital market helps Govt. and industrial concerns in raising funds by issuing various kinds of securities. The secondary market provides liquidity to the outstanding securities.