Securities and Exchange Board of India (SEBI)
SEBI was constituted in April 1988 to regulate and promote the securities market , Malpractices of companies, brokers, merchant bankers, and investment consultants to the detriment of the interest of investors compelled the government to constitute SEBI . The Board can regulate the business ,register and regulate the work of brokers, sub – brokers, transfer agents, bankers to an issue, underwriters, portfolio managers, investment advisers, or any other bodies associated with the securities market in any manner. The SEBI has already succeeded in ensuring proper disclosure to investors through prospectus; issuing guidelines for merchant bankers, share transfer agents registrars to an issue, portfolio management service, and for insider trading; in introducing the Stockinvest scheme to eliminate delayed refunds. It has also started registration of intermediaries associated with stock exchanges.
SEBI has also been instrumental in taking quick and effective steps in light of the global meltdown and the Satyam fiasco.It had increased the extent and quantity of disclosures to be made by indian corporate promoters. More recently, inlight of the global meltdown,it liberalised the takeover code to facilitate investments by removing regulatory strictures.
Selling Out
usually when the price has fallen, client who refuses to take securities bought by the broker on behalf of them, . The broker sells them at the best possible price and realizes the diference between the two prices from the client.
Selling Short
The selling of a security that the seller does not own, or any sale that is completed by the delivery of a security borrowed by the seller. Short sellers assume that they will be able to buy the stock at a lower amount than the price at which they sold short. He usually borrows the shares from his stockbrokers, promising to replace them at a future date, hoping that the price will fall by then. If the price falls, he buys the shares at the lower rate, and makes a profit on the difference. If the price has risen on the other hand, he has to buy the shares at the higher price, and sustains a loss.
Sentiment Indicators
A general term used to describe indicators that gauge investor attitudes toward the market.it is an assessment of bullish or bearish sentiment of the investors. Many technical analysts would look upon these as contrary indicators, that is, if most of the investors are bullish, the market is about to fall, and vice versa. Sentiment indicators are employed in technical analysis to quantify the levels of optimism or pessimism present in various markets. For example, some indicators will account for all the long and short positions on a particular exchange in order to determine a bearish or bullish market.
Settlement Date
In case of spot delivery contract the delivery of shares certificates and payment for them have to be made on the same day or the next day. In hand delivery contracts the delivery and payment have to be made on an agreed date, not exceeding even a fortnight from the date of contract. In practice, however, the settlement date is every alternate Friday.