EVENTS

Rain gambling, or "Barsat ka Satta", originated in Rajasthan, where the Marwari community, facing perennial water scarcity, speculated on monsoon patterns. It spread to Calcutta (now known as Kolkata) in the 1800s, faced British opposition in Bombay (now known as Mumbai), and led to a court victory for Marwari rain gamblers. Despite protests, legislative amendments caused its decline and eventual ban in Calcutta by 1900. This unique chapter in gambling history reflects human adaptability amid monsoon unpredictability, serving as a nostalgic reminder of India's early weather derivatives.

Limited Purpose Clearing Corporation (LPCC) has been set up for the purpose of clearing and settlement of corporate bond repo transactions and to develop an active repo market. Accordingly, SEBI vide circular dated February 02, 2022 pave the way for establishment of LPCC by AMCs of Mutual Funds. The LPCCs are expected to help improve liquidity in the underlying corporate bond market.

Limited Purpose Clearing Corporation (LPCC) has been set up for the purpose of clearing and settlement of corporate bond repo transactions and to develop an active repo market, SEBI Board, during September 2020, permitted the setting up of a Limited Purpose Clearing Corporation (LPCC). Accordingly, SEBI, vide circular dated February 02, 2022, pave the way for establishment of LPCC by AMCs of Mutual Funds. The LPCCs are expected to help improve liquidity in the underlying corporate bond market.

To improve the ease of doing business and to offer ease and convenience for investors to lodge their complaints, SEBI launched “SEBI SCORES” mobile application. SEBI SCORES, which is available on both iOS and Android platforms, will help investors access SCORES at the convenience of a smart phone.

SEBI, vide circular December 03, 1997, advised all stock exchanges to open or maintain at least one Investor Service Centre (ISC) for the benefit of the investors. Such centres are required to, inter alia, provide counselling services and certain basic minimum facilities to the investors. The major stock exchanges were allowed to open as many ISCs as required. Considering significant developments in the securities market, including technological advancements, the provisions related to ISC (Investor Service Centers) of stock exchanges were reviewed. To enhance outreach to investors nationwide, stock exchanges were advised to utilize existing ISCs at various locations and were further instructed to open additional ISCs as necessary, in accordance with SEBI's specifications. The minimum basic facilities to be provided at each ISC were also specified.

SEBI, vide circular dated December 03, 1997, advised all stock exchanges to open or maintain at least one Investor Service Centre (ISC) for the benefit of the investors. Such centres are required to, inter alia, provide counselling services and provide certain basic minimum facilities to the investors. The major stock exchanges were allowed to open as many ISCs as required. Considering significant developments in the securities market, including technological advancements, the provisions related to ISC (Investor Service Centers) of stock exchanges were reviewed. To enhance outreach to investors nationwide, stock exchanges were advised to utilize existing ISCs at various locations and were further instructed to open additional ISCs as necessary, in accordance with SEBI's specifications. The minimum basic facilities to be provided at each ISC were also specified.

SEBI took several policy initiatives with the objective of facilitating the exit process for non-operational stock exchanges.

“… 50 million sterling, if not more, of real wealth had been allowed to disappear like the baseless fabric of a vision, and how on the debris of such fabric the Bombay (now known as Mumbai) of today was re-built…”- DE Wacha, A Financial Chapter in the History of Bombay City. The American Civil War, which took place from 1861 to 1865, had a profound impact on global cotton supplies. Amidst the crisis, India emerged as a crucial alternative source of cotton for the textile mills of Europe. The Bombay Presidency, in particular, played a pivotal role in supplying cotton to meet this growing demand.

The history of bank failures dates back to a few centuries but recorded ones are as far back as 17th century. In the early 20th century, the world's financial landscape underwent significant transformation. As nations braced themselves for the impending chaos of World War I, India's economy had to confront multiple challenges. One of the most significant economic events during this period was the series of domestic bank failures between 1913 and 1921, which left an indelible mark on Indian stock exchanges. A notable case during this period was that of a prominent member of the Native Share and Stock Brokers Association (earlier known as Bombay Stock Exchange and now BSE), Mr. Jahangir Byramji, who had a substantial holding in Manekji Petit Mill shares, was adjudicated as an insolvent.

The Great Depression was the deepest and longest economic downturn of the 20th century that affected most of the major economies of the world. India, being a colonial export-oriented economy, was also adversely impacted by the Great Depression, primarily due to a crash in commodity prices in domestic and international markets. Further, stocks plummeted on major Indian exchanges, taking cues from global turmoil. However, by 1932, normalcy was restored in international trade and manufacturing activity and there was a sizable recovery in India as well. The article delves into the events leading to the Wall Street crash of 1929, the subsequent global economic depression, and the impact of these events on the Indian economy.

These two rollouts of “[at]valid Handle” and “SEBI Check” are expected to significantly enhance investor protection by curbing fraudulent money collections by unregistered entities.

SEBI promotes standardised reporting, savings of over Rs. 200 crore over 5 years, 90 percent reduction in reporting requirements for Brokers or Members, lower cost of entry for new fintech.

SEBI announced a significant initiative to enhance investor protection and combat unauthorized money collection in the securities market. Effective October 1, 2025, SEBI will introduce a structured and validated UPI address mechanism, featuring the exclusive valid handle, for all SEBI-registered investor-facing intermediaries.

The Government of India have appointed a committee, with Mr. A. D. Gorwala as its chairman, to assist them in formulating legislation for the regulation of stock exchanges and contracts in securities. While a Bill has already been introduced in Parliament for the regulation of forward contracts, it does not cover trading in securities. The Committee will consider the draft proposals of Government and submit a revised draft Bill. It will meet in Bombay on June 26 and will submit its report within a month.

The government has amended the Securities Contracts (Regulation) Rules, 1957, to allow a company to become a member of a stock exchange if it satisfies certain conditions. The conditions are that the company is formed in compliance with the provisions of section 322 of the Companies Act, that a majority of the directors are shareholders of the company and members of the stock exchange, and that the directors have "unlimited liability" in the company. Under the amended rules, notified in the Gazette of India Extraordinary, the stock exchanges would admit these members on the recommendations of several financial institutions, including the Industrial Finance Corporation and the Industrial Development Bank of India

The Securities and Exchange Board of India (SEBI) has framed rules to register and regulate stock dealers, share shoppes, and unauthorised stock exchanges under Section 12 of the SEBI Act. These rules are proposed with a view to redressing the grievances of investors in semi-urban and rural areas who have been experiencing difficulties in getting services for disposal of securities or consolidating odd lots. The regulations impose a statutory duty on stock dealers to deal only on a spot delivery basis and issue receipts in a specified form. Additionally, every applicant eligible for grant of a certificate must pay an initial fee of Rs 50,000 to keep the certificate in force. Stock dealers will have to submit information relating to their activities as and when required by SEBI.

A Select Committee has proposed a Central Advisory Council to advise the Government on development and regulation of scheduled industries. The revised Bill includes provisions to levy a cess on manufactured goods to fund the administration of the Act and a new clause has been inserted for safeguarding the interests of the consumers. The measure aims to balance industrial development with consumer protection.

Stock brokers on India's 20 exchanges have initiated a dialogue with the Securities and Exchange Board of India (SEBI) following a spontaneous strike regarding quantum of registration fees to be charged by SEBI. While the broker community resists regulation, it is fairly certain that deregulation and liberalization in the economy will bring a drastic change in the way Indian brokers do their business. Currently, exchanges are riddled with problems like unbridled speculation and insider trading. SEBI requires substantial funds to monitor these activities, conduct research, and provide investor protection. Ultimately, the core of these reforms will be the stock exchanges themselves, as securities regulation must be tightened to maintain investor confidence.

After a delay of two years, the Securities Appellate Tribunal has been set up with C. Achutan as its first presiding officer. The tribunal will hear appeals against adjudicating orders issued by SEBI, providing a dedicated forum for grievance redressal. This move is expected to insulate the regulator's quasi-judicial functions from government interference and create a body of consistent case law for the securities market.

There was another resounding market crash. The prices early dropped from 5 to 30 points and the sales exceeded 7.5 million dollars but a moderate rally in the afternoon wiped out half the previous declines. The rally was partly due to the recovery of the Chicago wheat pit, where early losses of about 4 cents per bushel were reduced to less than 2 cents.

The Unit Trust of India, formed under the Unit Trust of India Act, 1963, has been set up in Bombay with effect from February 1. Mr. R. S. Bhatt has been appointed chairman of the trust and Mr. V. G. Pendharkar, Economic Adviser to the Reserve Bank of India, as Executive Trustee. Besides the chairman and the executive trustee, the Board of Trustees of the Unit Trust comprises representatives from various financial institutions, including the Reserve Bank of India, Life Insurance Corporation of India, and the State Bank of India. Other members include executives from Greaves Cotton & Co. Ltd., Andrew Yule & Co., Industrial Credit and Investment Corporation of India, and Punjab National Bank.

Rai Bahadur Lala Sita Ram Sahib proposes to introduce a Bill in the next session of the Legislative Council to further amend the Public Gambling Act of 1867. The statement of objects and reasons notes that previous amending Acts have not gone far enough to effectively deal with forms of wagering such as "satta" gambling on opium chests or cotton bales. As a result, gaming based on manipulated digits or vessels remains very rife in several towns of the United Provinces. It is considered to be in the interests of society that such gambling should be suppressed. Rain gambling is another ruinous form of wagering which it is desirable to penalise.

In the "Bursat-ka-Satta" or rain-speculation case, the Chief Presidency Magistrate heard arguments regarding whether the defendants broke the Gambling Act by keeping a place for wagering. A central point of contention was whether the clock placed in the shed constituted an instrument of gaming. The prosecution argued that bets were decided by the clock, while the defense maintained it was merely referred to for satisfying one's self of the time. Counsel for the defense declared that as the bets were not made by the clock, it was not an instrument or means of wagering. The Magistrate informed the parties that he would take time to consider his decision and deliver it on a future date.