Regulation & Compliance
What legal disclosures am I required to make as an investor or trader?
If you are an investor or trader in India, there are certain legal disclosures you must provide under SEBI regulations, exchange rules, and tax laws. These requirements help ensure fair and transparent markets. Below are the main disclosures you may ...
What are the rights and responsibilities of shareholders?
Shareholders-individual or institutional-hold ownership in a company and are protected under the Companies Act, 2013, SEBI regulations, and the company’s Articles of Association. They enjoy several key rights but also have important responsibilities. ...
How are investors informed about trading halts and resumptions?
Trading halts (suspensions) and resumptions can happen for various reasons, such as significant company announcements, regulatory actions, operational issues or extreme market volatility. SEBI and stock exchanges have set clear processes to ensure ...
How does SEBI ensure investor protection and market transparency?
SEBI (Securities and Exchange Board of India) protects investors and maintains transparent, fair markets through a strong regulatory framework, continuous surveillance, and multiple investor safeguards. Below are the key mechanisms: 1. Strong ...
What compliance requirements exist for NRIs and foreign portfolio investors?
NRIs (Non-Resident Indians) and Foreign Portfolio Investors (FPIs) can participate in Indian securities markets, including equity and derivatives, but they must follow specific SEBI rules and RBI guidelines. Below is an overview of the key compliance ...
What SEBI rules apply to trading in derivatives?
SEBI (Securities and Exchange Board of India) has created a detailed regulatory framework for derivatives trading in India. These rules aim to protect investors, manage systemic risk, and ensure that derivatives markets function fairly and ...
What is insider trading and how is it regulated in India?
Insider trading means buying or selling shares of a listed company based on important information that is not available to the public. This information is called Unpublished Price Sensitive Information (UPSI). Examples of UPSI include financial ...
What are the rules around margin trading and leverage for retail investors?
Margin trading allows investors to buy securities by combining their own funds with money borrowed from the broker. Leverage refers to the additional buying power created through this borrowing. SEBI has put strict rules in place to ensure retail ...
What are KYC and AML, and why are they mandatory for opening a trading account?
1. KYC (Know Your Customer) and AML (Anti-Money Laundering) are mandatory regulatory requirements prescribed by SEBI for all stockbrokers in India. 2. KYC is the process of verifying a customer’s identity and address. It involves collecting documents ...
Popular Articles
What is an online trading platform?
An online trading platform is a software application that allows investors and traders to buy and sell financial instruments such as stocks, bonds, commodities, currencies, derivatives (like Futures and Options), and other assets through the ...
What is a stockbroker, and why do I need one?
A stockbroker is a SEBI-registered individual or company that acts as a middleman between you and the stock market. In India, you can’t directly buy or sell shares on the stock exchanges like NSE (National Stock Exchange) or BSE (Bombay Stock ...
What is a speculative stock?
A speculative stock is a high-risk stock that offers the potential for high returns. Speculative stocks are often associated with companies that are new, have uncertain prospects, or are undergoing major changes. Speculative stocks appeal to ...
What is technical analysis in stock trading?
Technical Analysis is a method used by traders and investors to evaluate financial instruments like stocks, commodities, and currencies by analyzing historical market data—primarily price and volume. Unlike fundamental analysis, which examines a ...
What are the different types of mutual funds?
The Securities and Exchange Board of India (SEBI) has classified mutual funds into five main categories based on their investment instruments: Equity Schemes: These funds primarily invest in equity and equity-related instruments. SEBI has defined ...