Chapter 14 · 10 of 100 marks · workbook pages 255-294
Legal and Regulatory Environment
The regulators, the key Acts and SEBI regulations (insider trading, PFUTP, Research Analyst Regulations), the code of conduct, conflict and disclosure rules, GSM and ASM, the investor charter and CSCRF.
Focus
- Regulators
- SCRA
- SEBI Act
- Insider trading
- PFUTP
- RA Regulations
- IBC
- Code of conduct
- Disclosures
- GSM/ASM
- Investor charter
- Cybersecurity
Must know
- SEBI regulates securities markets and intermediaries; RBI, MCA, IRDAI, PFRDA, and IBBI have separate financial-market roles.
- Insider trading regulations revolve around unpublished price-sensitive information and trading or communication restrictions.
- Research Analyst Regulations cover registration, qualification, certification, conduct, disclosures, and conflicts.
- GSM and ASM are exchange surveillance mechanisms for risk controls.
- Research reports and recommendations must include relevant disclosures and manage conflicts of interest.
Traps
- Disclosure does not cure every conflict.
- UPSI cannot be used for trading or passed to others.
- Know which regulator handles which market function.