Question

11. Explain the role of stock exchanges in investors protection.​

Answer 1

Answer:

Abstract

Indian stock exchange plays a very important role in channelizing money from the investor to the industries and vice versa. Stock exchanges help in issuing securities, payment of dividend, redemption of securities, issuance of other financial instruments etc. Stock exchanges give reasonable, clear and well-organized securities market to the investors with other advance technique of securities trading. The major objectives behind the establishment of stock exchanges was to provide stock market access to investors from all over the country on one platform and working on the pattern of international financial markets. With the growing stock trading techniques and changing regulatory atmosphere, it is necessary to evaluate the working of stock exchanges and regulatory framework of stock exchange. This paper examines the structure and working of stock exchanges and investor protection by stock exchanges. It also suggests measures to protect the interest of the investors.

Explanation:

Stock exchanges help in issuing securities, payment of dividend, redemption of securities, issuance of other financial instruments etc. Stock exchanges give reasonable, clear and well-organized securities market to the investors with other advance technique of securities trading.