These instruments proma facie provide evidence of ownership to the holder of the instrument. The owner is entitled to receive all the benefits due on the instrument and to retrieve his investment at the time of redemption. Securities can broadly be divided into two categories. Debt Securities and Equity Securities. However, Section 2(h) of Securities Contract (Regulation) Act, 1956, defines Securities as under:
Securities include –
- Units or any other instrument issued by any collective investment scheme to the Investors in such a schemes.
- Security receipt as defined in clause (zp) of Section 2 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
- Units or any other such instrument issued to the investors under any mutual fund scheme.
2. Government Securities
3. Such other instruments as may be declared by the Central Government to be Securities and,
4. Rights or Interests in Securities.