Investment Laws

Investment and Securities Laws

Investment and securities laws regulate the financial markets, ensuring transparency, investor protection, and market stability. The evolution of these laws in India has shaped the framework governing securities, including different types of securities and their regulation.

This module covers key legislations like the Securities Contracts (Regulation) Act, 1956, and the SEBI Act, 1992, highlighting the role of stock exchanges and regulatory bodies. It also explores the Depositories Act, 1996, focusing on dematerialization and modern investment practices.

a) Evolution of Securities and Investment Laws in India

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b) Concept of Securities and Kinds of Securities

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c) Regulatory Framework to Govern Securities in India

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d) The Securities Contracts (Regulation) Act, 1956 - Delisting of Securities

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e) Role of Stock Exchange under It - Powers and Functions under SEBI Act, 1992

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f) The Depositories Act, 1996 - Dematerialisation of Shares

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Banks and Securities

Banks play a crucial role in the financial market, not only through direct lending but also by issuing securities and facilitating investments. The shift from traditional banking to modern investment banking has transformed financial services, offering innovative investment solutions.

This module explores the evolving functions of banks, the issuance of securities, and the significance of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. It also examines the role of Debt Recovery Tribunals and key case laws shaping banking and financial regulations.

a) Role of Banks to Issue Securities

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b) Changing Functions of Banks from Direct Lending to Modern System of Investment Banking

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c) Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002: Its Background , Importance, The Debt Recovery Tribunals and Important Case Laws

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Foreign Investment Laws

Foreign investment laws regulate the flow of capital into a country, ensuring economic stability and growth. The Foreign Exchange Management Act (FEMA), 1999, plays a key role in governing foreign trade, distinguishing itself from the earlier FERA. Other regulations, like the Foreign Trade (Development & Regulation) Act, 1992, oversee trade policies and exchange control mechanisms.

This module explores key aspects of foreign investments, including foreign direct investment (FDI), foreign institutional investors (FIIs), and the role of transnational and multinational corporations. It also examines the UNCTAD model, the regulatory framework for SEZs, and India’s policies on foreign collaborations and joint ventures.

a) Role of the Foreign Exchange Management Act, 1999 to Regulate Foreign Trade - Difference from FERA, Administration of Exchange Control, Adjudicatory Powers

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b) Foreign Trade (Development & Regulation) Act, 1992

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c) Joint ventures in India and Foreign Collaborations: Concept of Transnational Corporations and Multinational Corporations

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d) UNCTAD model

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e) Foreign Direct Investment

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f) Foreign Institutional Investors: Its Regulatory Mechanism in India

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g) Concept of Special Economic Zone (SEZ)

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