Secondary Securities Market
SEBI made special efforts to make the markets more modern - in terms of infrastructure, practices and attitudes; and more transparent and efficient. Measures were also adopted to maintain the safety and integrity of the market. The comprehensive system of margins and other steps taken to reduce settlement risks helped the process. The clearing and settlement systems were also improved significantly. These measures combined with surveillance and effective implementation of regulations in these areas helped in fostering the confidence of domestic and foreign investors.
To achieve these objectives, SEBI maintained a continuous interface with the stock exchanges on various issues related to investor protection, improvement in the quality of intermediation and building an automated market infrastructure. SEBI extends its oversight to the 22 stock exchanges in the country and in this area, SEBI directed its efforts towards encouraging the stock exchanges to become effective as self regulatory organisations The measures taken by SEBI in 1996-97 in the secondary market are discussed below.