Software Technology Parks of India (STPI)
Context:
Recently, The Securities and Exchange Board of India (SEBI) has issued a cautionary statement regarding deceptive trading platforms falsely asserting ties with its registered Foreign Portfolio Investors (FPIs).
Relevance:
GS-03 (Economy)
Key Highlights
- STPI was established in 1991 under the Ministry of Electronics & Information Technology to implement Software Technology Park (STP) and Electronics Hardware Technology Park (EHTP) schemes and manage infrastructure facilities.
- STPI is fostering the pan-India start-up ecosystem through initiatives like Centres of Entrepreneurship (CoEs) and the Next Generation Incubation Scheme (NGIS).
- STPI launched SayujNet, a networking and resource discovery platform, and the STPI Workspace portal.
- The hyperscale cloud “Ananta” was announced, designed to offer various services including PAAS, SaaS, and GPU-based services, aimed at serving Indian needs.
- The DeepTech Knowledge Report titled ‘Cutting-Edge Tech Forging India as a Software Product Nation’ was released to provide insights into the state of advanced technologies in India.
Role of Stock Exchanges in Economic Growth
- Stock exchanges reflect the health and fluctuations of the economy through share price movements.
- They value securities based on market dynamics of supply and demand, assisting creditors, investors, and governmental bodies.
- Stock exchanges enforce stringent rules and regulations for listed securities, ensuring transactional safety.
- They facilitate continuous trading of securities, promoting capital formation and reinvestment.
- Stock exchanges offer a platform for buying and selling securities, enabling investors to easily convert investments into cash.
- They encourage public investment in securities by offering potentially higher returns compared to traditional investments, fostering a culture of saving and investment.
- By enabling profit-making companies to raise fresh capital, stock exchanges ensure optimal resource allocation for investor returns.
How SEBI curbs Market Volatility:
- SEBI can regulate trading and settlement on stock exchanges and issue directions to market participants.
- SEBI has the authority to direct stock exchanges to halt trading, either completely or selectively, and can restrict entities or individuals from engaging in securities trading or raising funds from the market.
- Exchanges have upper and lower circuit filters to control excessive volatility.
- SEBI established the Prohibition of Fraudulent and Unfair Trade Practices Regulations (1995) and the Prohibition of Insider Trading Regulations (1992) to combat market manipulation and insider trading.
