Who are market makers and what they do?

Who is the Indian market maker?

SEBI appointed a committee on March 24, 1998, to study 'Market Maker' under Mr.G. P. Gupta, the then chairman, U.K. Formed under the chairmanship of T.I. It was expected from this committee what should be the method of operating process of market makers and what should be the qualifications to participate in it. Apart from this, how to remove the problems and financial hazards coming in the operation process. This committee started its procedure, then prepared a final report, and after making its recommendations and introductory study of the market maker, submitted the report to the 'Stock Exchange', a copy of which was also sent to SEBI. Market Maker

What are the responsibilities of a market maker?

 (1) A market maker must not indulge in fraudulent or fraudulent practices

(2) Rumors should not be spread to unbalance the market. Needed

3) A market maker must maintain a high degree of honesty and promptness in dealings relating to the sale and purchase of shares.

(4) A market maker should exercise due prudence and care in the conduct of all his affairs.

(5) A market maker should not, either individually or in association with others, conduct false market

When a dealer creates and maintains a market for a security, then he is called a market maker and this process is called market keeping. This type of dealer is always ready to buy and sell that security. In this way, to do the work of market creation, both buying and selling have to be done in their own account. The trading is done by a market maker on his own account.

Such a person firm or organization will fix the price of 'buying' or 'selling' on selling an item to its customers, it will be called Market Maker.

According to American Capital Markets, a market maker is a person or firm that creates and runs the market for an instrument or instrument.

The intermediaries appointed by SEBI to facilitate the sale and purchase of shares are known as market makers. According to the guidelines of SEBI, for the shares for which the market maker wants to buy and sell, he will have to give two-way quotes, which will be fixed based on demand and supply in the market.