Under Sebi guidelines, all investment advisors are obligated to provide requisite details that are sought by investors.
By April 1992, Sebi had become the statutory regulator, but a kind of vacuum existed for the next few months.
The company allegedly raising money from investors despite being barred from doing so.
Sebi chairmanUK Sinha had said that 900 entities havebeen banned from capital markets by the regulator and cases have been referred to the I-T Department.
Notion that speculation of futures prices being the cause of the cost rise is wrong, says UK Sinha.
The case prompted the Finance Ministry to act quickly on operationalising the Securities Appellate Tribunal in 1997.
Responding to a query on apprehensions that Participatory Notes (PNs) are being misused, the Sebi chairman said the regulator has all the data about entities who are using PNs.
AIFs, too, can invest in instruments of offshore VCUs.
In 2007, the committee headed by Percy Mistry, a former World Banker, submitted a report suggesting to bring regulation of all securities trading across stocks, bonds, forex and commodities under Sebi.
The Forward Contracts Regulation Act (FCRA) stands repealed, and the regulation of the commodity derivatives market shifts to Sebi under the Securities Contracts Regulation Act (SCRA), 1956.
Merger of Sebi and FMC will hopefully lead the way to a unified regulator for the financial market.
What may have prompted this merger is the over Rs. 5,000 Crore NSEL scam. But, this has long been in the making.
A series of ponzi schemes, many of which were linked to plantation schemes, including teak plantations, promised investors very attractive returns.
The Bombay HC will hear a petition filed by a group of employees of the commodites regulator opposing the merger on Monday as they have been left out of the merged entity.
Under Sebi norms, it can impose a penalty of Rs 25 crore or three times of the profit made by indulging in fraudulent and unfair trade practices.