PARALYZING SMALL INVESTORS UNDER THE GUISE OF MELIORATION: A CRITICAL EVALUATION OF SEBI ICDR FIFTH AND SEVENTH AMENDMENT NOTIFICATIONS
Initiation of the capital market in India dates back to the 18th Century when the East India company securities were traded in the country. The birth child of the group of traders in Bombay called “The native Share and Stock Broker’s Association” became the first official stock exchange renamed the Bombay Stock Exchange. Change of economic policies at the helm, resulted in another leading stock exchange establishment in Mumbai in the year 1992- the National Stock Exchange, which went on to become the largest stock exchange in India, with a market share of nearly 70% in equity trading and 98% in futures and options trading in India. For a healthy growth of capital markets and to prevent malpractices in trading, the Government had decided to “set up a separate board for the regulation and orderly functioning of the Stock Exchange and the securities industry.” This resulted in the formation of Securities and Exchange Board of India (hereinafter referred to as ‘SEBI’) as an interim administrative body to function under the overall administrative control of the Ministry of Finance of the Central Government, by a notification issued on the 12th April 1988.