Stock exchanges are set up to handle matters of discipline, default and investor-broker disputes. The exchanges are required to appoint a professional, non-member executive director who is accountable to SEBI for the implementation of its directives on the regulation of stock exchanges.
After a security is issued to the public and subsequently listed on a stock exchange, the issuing company is required under the listing agreement to continue to disclose in a timely manner to the exchange, to the holders of the listed securities and to the public any information necessary to enable the holders of the listed securities to appraise its position and to avoid the establishment of a false market in such listed securities.
FUNCTIONS OF STOCK EXCHANGES
- Established for the purpose of assisting, regulating and controlling business of buying, selling and dealing in securities ·
- Provides a market for the trading of securities to individuals and organizations seeking to invest their saving or excess funds through the purchase of securities ·
- Provides a physical location for buying and selling securities that have been listed for trading on that exchange
- Establishes rules for fair trading practices and regulates the trading activities of its members according to those rules ·
- The exchange itself does not buy or sell the securities, nor does it set prices for them.
LIST OF WELL KNOWN STOCK EXCHANGES
- New York Stock Exchange
- London Stock Exchange Group
- Japan Exchange Group – Tokyo
- Shanghai Stock Exchange – China
- Hong Kong Stock Exchange
- Shenzhen Stock Exchange – China
- Bombay Stock Exchange – India
- National Stock Exchange of India
- Australian Securities Exchange
- SIX Swiss Exchange, etc.