SEBI and NBFC Important point -Banking awareness for IBPS, SBI, PO and Clerk exam 2015

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SEBI organization:

sebi-1-728

Important point Related to SEBI organization:

  1. The Securities and Exchange board of India (SEBI) was set up in 1992 by passing SEBI Act.
  2. SEBI organization was set up to protect the interest of investor in securities and to promote the development and regulation of securities market.
  3. It was headquarter at Mumbai.
  4. SEBI current Chairman – UK Sinha
  5. In earlier, Securities and exchange board of India (SEBI) was a non-statutory body without any statutory Power.
  6. After 1995, SEBI Board was given additional statutory power by the government of India through amendments to SEBI Act, 1992.

SEBI Structure:

  1. One chairman and 2 members one as official form the ministry of central government and other is Administrative of company act 1956.
  2. And one member is also from reserve bank of India (RBI)
  3. Five other Members

SEBI Objective check below:

  1. SEBI organization is to regulated securities market for fair practice.
  2. This board is also promoting systematics service by brokers, merchant bankers etc.

SEBI main function:

  1. SEBI board functions are divided in two categories:
  • Regulatory function
  • Development Function
  1. Regulatory Function:
  • SEBI board is controlled of stock market and self-regulatory organization.
  • It is also registrations and regulations of self-brokers, sub broker and merchant brokers,
  • Regulations of investment scheme and mutual funds
  • And SEBI board is also regulations acquisitions of share & takeover of companies.

   2.  Development function:

  • To promotion of fair practices
  • SEBI Promotion of self-regulatory organizations
  • To promoting Investor’s education and training of intermediates

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SEBI Committee:

  • To Technical Advisory committee
  • Most committee for review of structure of market infrastructure institution
  • Take over regulations Advisory committee
  • PMAC (Primary market Advisory committee)
  • SMAC (Secondary market Advisory committee)
  • Mutual Fund Advisory committee
  • Takeover panel
  • Derivatives market review committee
  • Committee of Infrastructure funds

NBFC Compnay:

nbfc-6-638

Important point related to NBFC organization:

  1. NBFC full form is Non-banking financial company
  2. A Non-Banking Financial company is a financial Company registered under the Companies act 1956.
  3. Non- banking financial company (NBFC) organization is engaged with in the business of loans and advance and acquisition of share/stocks/bonds issued by Government and other marketable securities.
  4. NBFC is also indulges in hire purchase, leasing, insurance and chit business.
  5. NBFC is financial institution same as bank but some difference given below.

Why need Non-banking financial Company (NBFC) in our country?

As you know that In case of India, India with Large of population. Banks can’t handle all section of the society as many as areas are inaccessible and remote. Also provide all banking facilities to the illiterate and the poor person, finance institution that work on similar as a bank required. So These type of requirement fulfilled by Non-banking financial Company. NBFC is not a bank, but many functions are similar as bank.

Difference between Bank and NBFC:

  1. Non- banking financial Company (NBFC) cannot collect deposit as bank.
  2. NBFC can’t issue check drawn on itself as bank.
  3. NBFC cannot issue demand draft same as bank.
  4. NBFC cannot indulge primarily in agriculture field or industrial activity
  5. NBFC cannot accept demand deposit as similar bank.
  6. NBFC cannot accept money deposit in the similar as bank.

Note- NBFC is required to register with Central bank of India (RBI). There are many types of NBFC managed by RBI.

  • Equipment leasing company
  • Hire Purchase Company
  • Loan Company
  • Investment Company