Abstract

Investors are pillar of the financial and security market. They determine the level of activity in the market. Investor protection is the basic and incentive step for the growth and development of companies and institutions in today’s Era. The protection is established to protect the interest of the investors. The U.S.A Security and Exchange commission being the primary regulator and financial authority is an independent agency of the United States federal government regulates authorization of federal security laws, rules, regulates security industry, stock exchange and other activities regarding the investors and investment protection in various sector of institutions. SEC administers its interest through six federal statutes. The applications of the commission is in form of administrative agency with the widest executives, also occurs in form of legislative and judicial functions protecting and tackling problems of security regulations. Those federal statutes are The Securities Act 1933, Security exchange Act 1934, The public utility holding company Act 1935, The Trust Indenture Act 1939, Investment Company Act , Lastly the Bankrupt Act of 1938 which basically includes the provisions over company’s winding up under chapter 10 of this Act. In order to alter and correct some of the powers of SEC for better protection of interest of securities and investors Investor Protection and Securities Reform Act 2010 was introduced. It also regulates the relation between customers, broker- dealers or investment advisors. The IPSRA includes various concepts under the title.

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