Capital Markets

A capital market is securities for both equity and debt, where companies and government raise long-term funds whereas the secondary capital market provides a trading platform for these securities. Regulators like SEBI and RBI, regulate and oversee the capital market to ensure an orderly development of the market and protection of investors. Shareholders are the real owners of a company who benefit through dividends and capital appreciation, when the company performs well. On the other hand, they carry the risk of losing part or fully their investment if the company performs badly.

 Rights as a shareholder
  • You should receive the shares on allotment or purchase within the stipulated time period. If the company delays, you are very well within your right to ask the company what went wrong.
  • Can have the right to receive annual report copies containing balance sheets, profit and loss account and auditors report.
  • If you are a shareholder you are well within your right to receive dividends in due time as well as approved corporate benefits like rights and bonus.
  • You can participate in general votes, meetings and you should receive an offer letter in case of a takeover, delisting or buyback.
  • The statutory registers at the registered office, the minute books of the general meetings of the company you can inspect and you are allowed to receive copies on the same.
  • You can complain and seek redressal against fraudulent and investor unfriendly companies, you can also proceed against the company by way of civil or criminal proceedings.
  • You can also receive the residual proceeds in case of winding up.
 Rights as a debenture holder 
  • You should receive interest or redemption in the stipulated time
  • A copy of the trust deed should be sent to you on your request
  • You have the right to apply before the CLB in case of defaults in redemption of debentures on the date of maturity.
  • If the company fails to pay its debt you can apply for winding up of the company.
  • You can approach the Debenture Trustee for grievances.
Rights as a buyer or seller of securities 
  • You can ask for the proof of best price or the brokerage charged to you
  • You can avail a statement of accounts from the broker, depository etc.
Obligation as a buyer or seller of securities
  • Ensure you are given a valid contract note or have a proper agreement with the broker
  • Your payment cannot be delayed and shares should be delivered to you on time.
 Rights of redressal
  • If you are a victim of fraudulent pricing, unfair brokerage or delay in receipt of money or shares, you have the right of redressal.
 Your responsibility as an investor
  • You have the right to remain informed and the right to be vigilant
  • You can exercise your rights on your own or as a group