आर्थिक कार्य विभाग DEPARTMENT OF Economic Affairs

Menu

You are here

Home >> Divisions >> Financial Markets Division

Financial Markets Division

ABOUT THE DIVISION

Introduction

Financial Markets Division is primarily responsible for policy issues related to the development of the securities markets and matters incidental thereto like, External Commercial Borrowings and Foreign Portfolio flows under Foreign Exchange Management Act (FEMA), 1999. Since 2013, the Division is entrusted with the development of commodity derivative markets. The division looks after the administrative matters of the Securities and Exchange Board of India (SEBI) and Securities Appellate Tribunal (SAT). The division facilitates the sovereign credit rating by various credit rating agencies and financial dialogues with USA, UK and Japan.

FM Division is responsible for the administration of SEBI Act, Securities Contracts Regulation (SCRA) Act 1956, Depositories Act, 1996 and Section 20 of the Indian Trust Act, 1882 and related regulations and notifications thereunder. Issues related to erstwhile Forward Contracts (Regulation) Act, 1952 is also handled in the FM Division. Sections in Financial Market Division.

The various Sections and their work allocation are given below (each of the sections handle the parliament questions, grievances, RTIs, court cases miscellaneous references etc. belonging to their work areas):

I. Primary Markets (PM)

1. Policy formulation on issues relating to initial and further issue of capital and related intermediaries engaged in the same such as
(a) Mutual funds,
(b) Collective investment schemes,
(c) Alternative investment funds,
(d) Domestic credit rating agencies, \
(e) Merchant Banks etc.
2. Policy issues related to Mergers, takeovers and acquisitions
3. Development of Corporate bond market
4. Financial literacy
5. Corporate governance of companies
6. Matters related to National Institute of Securities Market (NISM)
7. Policy articulation on agenda items of SEBI’s Board meetings (primary responsibility)
8. SEBI Act and related rules and regulations 9. Coordinating DEA-NIFM Research Programme

Institutions : SEBI
External Territorial Charge : Nil
Ministries/Departments: Ministry of Corporate Affairs
States: Nil
Legislations: The Securities and Exchange Board of India Act, 1992 (SEBI Act)

II. Secondary Market & Investor Grievances

(1) Secondary Market

1) Policy issues of Secondary Market and related Intermediaries and Participants (stock exchanges, clearing corporations, depositories their
participants, trading members, investment advisors etc.), their ownership and governance issues etc.
2) SME Exchange/New Segments/ platforms for trading in securities /crowd funding platforms
3) Taxes and Stamp Duties in Securities Markets / tax savings schemes
4) Skilling in securities market /capacity building initiatives
5) Delisting of companies and associated policy concerns
6) Creating a single demat account for all financial assets
7) Database relating to Securities Markets
8) Monitoring of Stock Market Movements
9) Self-Regulatory Organizations
10) Cyber security of market infrastructure /trading technology related matters
11) Regulation of distributors /distribution of financial products
12) Matters related to investor education and protection fund at SEBI, exchanges and depositories
13) Policy on Frozen Demat Accounts
14) Ratification of UNIDROIT / Geneva Securities Convention
15) Securities Contracts (Regulations) Act, 1956 and related Rules and Regulations
16) Depositories Act, 1996 and related Rules and Regulations

Institutions: Stock Exchanges, Clearing Corporations, Depositories
External Territorial Charge: Nil
Ministries/Departments: Nil
States: Nil
Legislations:
• The Securities Contracts (Regulation) Act, 1956 (42 of 1956),
• The Depositories Act, 1996 (22 of 1996)

(2) JPC & Investors Grievances

1) Matters related to Section 20 of Indian Trust Act 1882
2) Preparation of Progress Report on Action taken on recommendations of Joint Parliamentary Committee (JPC) on Stock Market Scams and matters related
thereto.
3) Matters related to Nizam Trust
4) Handling of Investors’ Grievances (Electronic & Physical) related to FM Division/ transferring of other representations to respective authority
5) Study/ Survey on reforms required in Investors’ Grievance Redressal Mechanisms available in India
6) Residual work related to Unit Trust of India/ SUUTI/ UTIAMC.

Institutions: SEBI
External Territorial Charge: Nil
Ministries/Departments: Nil
States: Bihar, Jharkhand, Uttar Pradesh, Uttrakhand, Himachal Pradesh
Legislations: Indian Trusts Act, 1882 (Section 20)

III. External Financial Market (Equity & Debt)

(1) External Market (EM)

1) Matters relating to Investment by Foreign Portfolio Investors
2) Matters relating to Depository Receipts Scheme (ADR/GDR/IDR)
3) Matters relating to International Financial Service Centres in India
4) Matters relating to International Settlement of Indian Debt Securities (through Euroclear and Clear stream)
5) Matters relating Global Bond Indices
6) Matters relating to Currency Derivatives markets in India and Interest Rate Derivatives
7) Matters relating to trade payments settlement mechanism with Iran
8) Approval for establishment of Liaison office / Branch office/ Project Office in India by Foreign entities
9) Approval for purchase of immovable property in India by foreigners/ non residents

Institutions: Securities and Exchange Board of India (For matters relating to SEBI (Foreign Portfolio Investors) Regulations, 2014 and RBI (for matters
relating to FEMA)
External Territorial Charge: Nil
Ministries/Departments: NIL
States: Nil
Legislations: Foreign Exchange Management Act, 1999

(2) External Commercial Borrowing (ECB)

1) Matters relating to External Commercial Borrowings, Foreign Currency Bonds, Trade Credits and Offshore Rupee denominated Bonds [masala bonds].
2) Matters relating to all FEMA Regulations except FEMA 21 & 22
3) Matters relating to FEMA Non Debt Instruments Rules and FEMA 20 Regulations
4) Matters relating to FEMA Current Account Rules and Liberalised remittance scheme
5) Matters relating to trade payments mechanisms with all countries other than Iran
6) Matters related to Black Money
7) Approval for opening Non Resident Ordinary (NRO) and Non Resident Rupee (NRE) Accounts by foreigners/ non residents
8) Approval of foreign travel of Chief Ministers/Ministers/MLAs/Administrators/Officers of States and Union Territories
9) Matters relating to research programs

Institutions : Reserve Bank of India - For Matters Relating to FEMA, 1999 ,and Securities and Exchange Board of India - For Matters relating to SEBI
(Foreign Portfolio Investment) Regulations, 2014
External Territorial Charge : Nil
Ministries/Departments: All Departments of Ministry of Law & Justice, M/o Parliamentary Affairs
States : Nil
Legislations: Nil.

IV. Commodity Derivatives Markets & Coordination

I. Commodity Derivatives

1. Policy matters related to development of commodity derivatives market: Design of new products /contracts, entry of new players – domestic as well as
foreign, harmonization of rules and procedures with securities market, encouraging hedging by government entities / farmers etc.
2. Notifying commodities for trading: Resumption/suspension of futures trading in various notified commodities.
3. Integration of Commodity spot and derivatives market:
4. Commodity derivatives trading related matters: cases of manipulation /speculation etc.
5. Representing DEA in futures market related matters in the inter-ministerial committees on Essential Commodities’ price rise etc.
6. Delivery arrangements in the market: Taking up matters related to warehouses accredited by stock exchanges with WDRA and ministry of Consumer
Affairs
7. NSEL scam related matters: holding inter-ministerial, inter-agency periodic review meetings on NSEL scam and facilitating refund to investors

Institutions : Nil
External Territorial Charge : Nil
Ministries/Departments: Nil States : Nil
Legislations : Forward Contracts (Regulation) Act, 1956 (now repealed.

II. FM Division Coordination

1) Internal Coordination within FM Division
2) Monitoring the updation of e.Samiksha:

(i) VIP/PMO/Cab Sec References
(ii) Coordination of Budget implementation related matters for FM Division
(iii) Matters related to the Senior Management Group (SMG) meetings w.r.t. FM Division
3) Monitoring Parliamentary Assurances (OAMS portal)
4) Monitoring Court Cases on LIMBS Portal
5) Information/Inputs on issues sought by Admin(Coord),Economic Division and others
6) Website udpation
7) Work management matters within FM Division
8) Internship management within FM Division

Institutions: Nil
External Territorial Charge : Nil
Ministries/Departments: Nil
States: Nil
Legislations: Nil

Footer Menu