GLOPAC 2018 - Financial Services AgencyGuidelines / Circulars. SEBI ACT 1992 Establishes SEBI as a...
Transcript of GLOPAC 2018 - Financial Services AgencyGuidelines / Circulars. SEBI ACT 1992 Establishes SEBI as a...
GLOPAC 2018- INTRODUCTORY PRESENTATION
Pawandeep
Securities and Exchange Board of India
(SEBI)
インドからのこんにちは
SECURITIES MARKETSEquity markets
• Equity shares are issued & traded.
• comes under the purview of SEBI
Exchange Traded Derivatives markets
• Equity Derivatives
• Currency Derivatives
• Interest rate Derivatives
• Commodities Derivatives
Debt markets
• Debt Market for Government Securities, CPs, CDs comes under the purview of RBI,
• Corporate Debt is governed by SEBI
Investment Products
• Mutual Funds
• Alternative Investment Funds
• Collective Investment Schemes
Securities Markets
APPLICABLE STATUTES
Companies Act
Securities Contract (Regulation) Act 1956
SEBI Act 1992
Depositories Act 1996
In addition, delegated legislation under the above Acts
Rules
Regulations
Guidelines / Circulars
SEBI ACT 1992
Establishes SEBI as a regulator ofIndian Securities Market with 3broad objectives
Promote the development of
securities markets
Regulate the
securities markets
Protect the interest of investors
POWERS UNDER SEBI ACT 1992 Frame regulations and guidelines
Call for information
Conduct inspections and inquiries
Initiate investigations
Issue direction to intermediaries and persons associated with the capital market
Passing of prohibitory orders under Section11B and 11(4) of SEBI Act
Levy penalty through adjudication process
Suspension/ Cancellation of registration for intermediaries
Initiation of criminal proceedings.
Cease and desist orders under Section 11D of SEBI Act
Suspension of trading in case of listed companies
SECONDARY MARKET IN INDIA
• Trading mechanism: Fully Automated, Electronic, Open Order Book, Order Matching based on Price/ Time priority.
• Settlement mechanism: Corporation provides novation with multilateral netting, Guaranteedsettlement, T+2 rolling settlement in Cash Market and T+1 settlement in derivatives segment.
• Products traded: Equity Shares, Index and Stock derivatives, Currency Derivatives, Corporate Debt,Interest Rate futures, Mutual Funds, ETFs, Warrants, etc.
Major Stock Exchanges Clearing Corporations Depositories
National Stock Exchange of
India Limited (NSE)
National Securities Clearing
Corporation Limited (NSCCL)
National Securities Depository
Limited (NSDL)
BSE Limited (BSE) Indian Clearing Corporation
Limited (ICCL)
Central Depository Services
(India) Limited (CDSL)
Metropolitan Stock Exchange
Limited (MSEI)
MCX-SX Clearing Corporation
Limited (MCX-SXCCL)
Multi Commodities Exchange
(MCX)
April 23, 2018 SECURITIES AND EXCHANGE BOARD OF INDIA Slide 6
SECURITIES MARKET INFRASTRUCTURE
Clearing
NSDL
MSEINSE
CDSL
NSCCL
Commercial “clearing” (settlement) banks
MCCIL
BSE
ICCL
Trading
Securities settlement
Cash settlement
SNAPSHOT OF SECONDARY MARKET IN INDIA
Market Capitalization (as on March 28, 2018)
NSE USD 2.23 trillion
BSE USD 2.26trillion
Number of listed companies(as on January 31, 2018)
NSE 1906
BSE 5613
MSEI 6
Avg. Daily Turnover (USD million) in January 2018
Cash Market Equity derivatives Currency derivatives
NSE 5,879 1,15,511 3,472
BSE 884 0.03 3,901
MSEI 0.03 ~0 76
April 23, 2018SECURITIES AND EXCHANGE BOARD OF INDIA Slide 8
MARKET INTERMEDIARIES (AS ON JANUARY 31, 2018)Stock Exchanges (Cash Market) 5
Stock Exchanges (Equity Derivatives Market) 3
Stock Exchanges (Currency Derivatives Market) 3
Stock Exchanges (Commodity Derivatives Market) 7
Brokers (Cash Segment) 3,265
Brokers (Equity Derivatives Market) 2,706
Brokers (Currency Derivatives Market) 2,465
Brokers (Debt Segment) 169
Brokers (Commodity Derivatives Market) 1185
Sub-brokers (Cash Segment) 25,999
Foreign Portfolio Investors (FPIs) 9,083
Custodians 19
Depositories 2
Merchant Bankers 193
Bankers to an Issue 65
Debenture Trustees 32
Credit Rating Agencies 7
KYC Registration Agency (KRA) 5
Registrars to an Issue & Share
Transfer Agents73
Venture Capital Funds 846
Foreign Venture Capital Investors 466
Alternative Investment Funds 374
Portfolio Managers 218
Mutual Funds 45
Investment Advisors 262
Research Analysts 195
Infrastructure Investment Trusts (InVIT) 1
Real Estate Investment Trusts (REITs) 6
Collective Investment Management
Company1
CAPITAL MOBILIZED IN PRIMARY MARKET
Total Number of Issues
In FY 17-18 (upto Jan) :
171
Public91%(156)
Rights9%(15)
FPO, 21
IPO, 150
Equity, 166
Debt, 5
Exchange Domestic market capitalization (USD millions) in February 2018
NYSE 23 276 426.5
Nasdaq - US 10 590 257.1
Japan Exchange Group Inc. 6 399 711.2 3
Shanghai Stock Exchange 5 281 384.3
Hong Kong Exchanges and Clearing 4 491 556.3
Euronext 4 470 761.1
LSE Group 4 353 235.9
Shenzhen Stock Exchange 3 596 850.5
BSE India Limited 2 263 490.0 9
Deutsche Boerse AG 2 248 787.0
National Stock Exchange of India Limited 2 235 714.2 11
TMX Group 2 228 033.5
Korea Exchange 1 745 818.4
SIX Swiss Exchange 1 633 446.3
Nasdaq Nordic Exchanges 1 551 213.4
TOPIC : APPLICATION OF BLOCKCHAIN / DISTRIBUTEDLEDGERS IN SECURITIES MARKET AND DEVELOPMENT OFREGULATORY FRAMEWORK FOR THE SAME
Potential Benefits:
• Transparent real-time data – No reconciliations and disputes amongstcounterparties
• Near real-time settlement
• Reduction in collateral requirements and operational overheads
• Reduction in the scope for data errors, disputes and reconciliation lags, speeding up the end-to-end process.
TOPIC : APPLICATION OF BLOCKCHAIN / DISTRIBUTEDLEDGERS IN SECURITIES MARKET AND DEVELOPMENT OFREGULATORY FRAMEWORK FOR THE SAME
• Various regulators & exchanges are exploring the idea of adoption of thistechnology in securities market.
• Areas of adoption post-trade processing between institutional investors andbrokers/dealers, settlement mechanism, share records maintenance, KYC records,elimination the need of clearing house / corporation, e-voting.
• As Regulator, it is necessary to undertake detailed Cost- Benefit Analysis,understand risks.
TOPIC : APPLICATION OF BLOCKCHAIN / DISTRIBUTEDLEDGERS IN SECURITIES MARKET AND DEVELOPMENT OFREGULATORY FRAMEWORK FOR THE SAME
Expectations from the program / areas
• Fundamental and basic understanding of Blockchain / Distributed ledgers.
• Exposure to various platforms of Blockchain / Distributed ledgers.
• Understanding of the nuances, challenges, risks, benefits, etc..
• Interaction with various people who have created (or making attempts to create) solutions / applications for securities market using Blockchain / Distributed ledgers.
• Interaction with internal team at FSA who is working on the subject matter
• Interaction with officials of Japanese Central Bank, other Japanese Regulators (and if possible with regulators of other countries)
• Access to various studies / research work undertaken by FSA or its associate entities on the subject matter.
• Solutions / Proof of concept that can be brought back to India and tried in Indian securities market.
THANK YOU