{"id":24616,"date":"2023-07-21T06:32:15","date_gmt":"2023-07-21T06:32:15","guid":{"rendered":"https:\/\/fmtlacademy.com\/?p=24616"},"modified":"2023-09-04T09:52:32","modified_gmt":"2023-09-04T09:52:32","slug":"sebi-reforms-in-stock-market","status":"publish","type":"post","link":"https:\/\/fmtlacademy.com\/index.php\/2023\/07\/21\/sebi-reforms-in-stock-market\/","title":{"rendered":"The Much Needed Reforms In Stock Market"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"24616\" class=\"elementor elementor-24616\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-1304a6ac elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1304a6ac\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-75a59450\" data-id=\"75a59450\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-1f27a48 elementor-widget elementor-widget-heading\" data-id=\"1f27a48\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.16.0 - 14-09-2023 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><h2 class=\"elementor-heading-title elementor-size-large\"><a href=\"https:\/\/vinodbansalfmtl.wordpress.com\/\" target=\"_blank\" rel=\"noopener\"><i>SEBI has done a great job in reforming the stock market. Some more<\/i> <i>reforms are neweded to make exchanges more efficient.<\/i><\/a><\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-715e825 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"715e825\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-eae5911\" data-id=\"eae5911\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-1c58bde elementor-widget elementor-widget-text-editor\" data-id=\"1c58bde\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.16.0 - 14-09-2023 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p><strong>Fractional quantity:\u00a0<\/strong>Currently in India, one can not buy shares, of a listed company, which are lesser than 1 in quantity. Many investors are not able to invest in companies, where stock price is very high. For example, an investor can not buy shares of MRF tyre if she has Rs. Fifty thousand only with her, as the price of MRF tyre is more than eighty thousand. This is now worldwide trend that you can buy stocks in fraction also. Just some changes in software need to be made and you are ready for the purchase in fraction. It will gave a big push to liquidity and volume and will bring depth in high priced stocks.<\/p><div dir=\"auto\">\u00a0<\/div><div dir=\"auto\"><p><strong>Tick size:<\/strong>Tick size for all non-convertible and convertible debt instruments, Mutual Fund Units, Central Government Securities available for trading is one paisa. The tick size for Exchange Traded Fund (ETF) other than Gold ETF is one paisa. For all other securities and Gold ETFs tick size is five paisa.<\/p><\/div><div dir=\"auto\">If tick size is reduced to 1 paisa, it will also give high liquidity and depth in case of stocks as well in all stock exchanges. It will reduce the impact cost for investor and increase revenue of all the participants like exchanges and brokers.<\/div><div dir=\"auto\"><strong>\u00a0<\/strong><\/div><div dir=\"auto\"><strong>Face Value:<\/strong>\u00a0Investors in India don&#8217;t give much attention to the face value of a stock and are not able to take caculated decision while investing. Most of the stocks have face value of Rs. 10 and some have 1, 2 or 5. This is confusing for many and not serving any purpose. Many companies reduce face value from 10 to between 1 to 5. This measure also increases liquidity. Regulator should also ask all companies to reduce FV to 1 across the board to eliminate confusion and to increase depth.<\/div><div dir=\"auto\"><strong>\u00a0<\/strong><\/div><div dir=\"auto\"><strong>Circuit Filters:<\/strong>\u00a0Circuit filters need to be changed to cooling period. In investment market, a free market is always better as investor can exit any time or can enter any time. Let the market forces decide about the true value of a stock. Because of circuit filter, demand or supply remained pending and that is filled over a period of time. These filters create an artificial market in short term. Instead of circuit filter, a system of cooling period should be implemented. Cooling period system is being already followed in derivative market.<\/div><div dir=\"auto\"><strong>\u00a0<\/strong><\/div><div dir=\"auto\"><strong>Derivatives<\/strong>: It is very easy to manipulate the stocks which are not in dervative. Stocks in derivative are very difficult to manipulate. There are currently around 165 stocks in this segment. To check the manipations in stocks, more stocks should be included in derivative segment, with strict margin controls. The management with manipulative tendency, always wants it&#8217;s stock not to be in the derivative segment.<\/div><div dir=\"auto\">\u00a0<\/div><div dir=\"auto\">\u00a0<\/div><div dir=\"auto\">\u00a0<\/div><div dir=\"auto\"><strong>By- Vinod K. Bansal<\/strong><\/div><div dir=\"auto\">\u00a0<\/div><div dir=\"auto\">\u00a0<\/div>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-abfff15 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"abfff15\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-06b1a36\" data-id=\"06b1a36\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6123e2c elementor-widget elementor-widget-image\" data-id=\"6123e2c\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.16.0 - 14-09-2023 *\/\n.elementor-widget-image{text-align:center}.elementor-widget-image a{display:inline-block}.elementor-widget-image a img[src$=\".svg\"]{width:48px}.elementor-widget-image img{vertical-align:middle;display:inline-block}<\/style>\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/fmtlacademy.com\/index.php\/2023\/07\/21\/a-white-collar-murder\/\">\n\t\t\t\t\t\t\t<img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"683\" src=\"https:\/\/fmtlacademy.com\/wp-content\/uploads\/2023\/07\/pexels-liza-summer-6347711-1024x683.jpg\" class=\"attachment-large size-large wp-image-24528\" alt=\"Sebi\" srcset=\"https:\/\/fmtlacademy.com\/wp-content\/uploads\/2023\/07\/pexels-liza-summer-6347711-1024x683.jpg 1024w, https:\/\/fmtlacademy.com\/wp-content\/uploads\/2023\/07\/pexels-liza-summer-6347711-scaled-600x400.jpg 600w, https:\/\/fmtlacademy.com\/wp-content\/uploads\/2023\/07\/pexels-liza-summer-6347711-300x200.jpg 300w, https:\/\/fmtlacademy.com\/wp-content\/uploads\/2023\/07\/pexels-liza-summer-6347711-768x512.jpg 768w, https:\/\/fmtlacademy.com\/wp-content\/uploads\/2023\/07\/pexels-liza-summer-6347711-1536x1024.jpg 1536w, https:\/\/fmtlacademy.com\/wp-content\/uploads\/2023\/07\/pexels-liza-summer-6347711-2048x1365.jpg 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>SEBI has done a great job in reforming the stock market. Some more reforms are neweded to make exchanges more efficient. Fractional quantity:\u00a0Currently in India, one can not buy shares, of a listed company, which are lesser than 1 in quantity. Many investors are not able to invest in companies, where stock price is very [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":24617,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[9,34],"tags":[12,15,14,13],"_links":{"self":[{"href":"https:\/\/fmtlacademy.com\/index.php\/wp-json\/wp\/v2\/posts\/24616"}],"collection":[{"href":"https:\/\/fmtlacademy.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fmtlacademy.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fmtlacademy.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/fmtlacademy.com\/index.php\/wp-json\/wp\/v2\/comments?post=24616"}],"version-history":[{"count":7,"href":"https:\/\/fmtlacademy.com\/index.php\/wp-json\/wp\/v2\/posts\/24616\/revisions"}],"predecessor-version":[{"id":25930,"href":"https:\/\/fmtlacademy.com\/index.php\/wp-json\/wp\/v2\/posts\/24616\/revisions\/25930"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/fmtlacademy.com\/index.php\/wp-json\/wp\/v2\/media\/24617"}],"wp:attachment":[{"href":"https:\/\/fmtlacademy.com\/index.php\/wp-json\/wp\/v2\/media?parent=24616"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fmtlacademy.com\/index.php\/wp-json\/wp\/v2\/categories?post=24616"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fmtlacademy.com\/index.php\/wp-json\/wp\/v2\/tags?post=24616"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}