SEBI

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By: Prof. Mayank Pandey SVIT, Indore

ESTABLISHMENT OF SEBI : 

ESTABLISHMENT OF SEBI The Securities and Exchange Board of India was established on April 12, 1992 in accordance with the provisions of the Securities and Exchange Board of India Act, 1992.

HISTORY: : 

HISTORY: The Securities and Exchange Board of India was established by the government of India on 12  April 1988 as an interim administrative body to  promote orderly and healthy growth of the securities market and for investor protection. It was to function under the overall  administrative control of the Ministry of Finance of the GOI.

Reason for the establishment of SEBI: 

Reason for the establishment of SEBI The capital market had witnessed a tremendous  growth during the 1980·s characterized by the increasing participation of the public. This ever expanding investor population and market capitalization led to a variety of malpractices on the  part of companies, brokers, merchant bankers, investment consultants and others involved in the securities market.

Continued…..: 

Continued….. The glaring examples of these malpractices include existence of self styled merchant bankers, unofficial   private placements, rigging of prices, unofficial   premium on new issues, non adherence of provisions of The Companies Act , violation of rules and  regulations of stock exchanges and listing requirements, delay in delivering shares etc. These malpractices and unfair trade practices have eroded investor confidence and multiplied investor  grievances

Continued…..: 

Continued….. The government and the stock exchanges were rather helpless in redressing the investors problems because of lack of proper penal provisions in the existing legislation. Therefore the GOI decided to set up SEBI a separate regulatory body

PREAMBLE : 

PREAMBLE The Preamble of the Securities and Exchange Board of India describes the basic functions of the Securities and Exchange Board of India as "...to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto"

: 

Shri U. K. Sinha , Chairman, SEBI, SEBI Bhavan , Bandra Kurla Complex, Bandra (E), Mumbai - 400051. Shri Prashant Saran Whole-Time Member, SEBI, SEBI Bhavan , Bandra Kurla Complex, Bandra (E), Mumbai - 400051. Member Appointed under Section 4(1)(d) of the SEBI Act, 1992 CHAIRMAN BOARD MEMBERS Shri Rajeev Kumar Agarwal Whole-Time Member, SEBI, SEBI Bhavan , Bandra Kurla Complex, Bandra (E), Mumbai - 400051 Member Appointed under Section 4(1)(d) of the SEBI Act, 1992

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Dr. Thomas Mathew Joint Secretary (Capital Markets), Department of Economic Affairs, Ministry of Finance New Delhi Member Nominated under Section 4(1)(b) of the SEBI Act, 1992 Shri V. K. Jairath 194 B Kalpatru Horizon, S.K. Ahire Marg , Worli , Mumbai 400018 Member Appointed under Section 4(1)(d) of the SEBI Act , 1992 Shri Anand Sinha Deputy Governor Reserve Bank of India Member Nominated under Section 4 (1) (c) of the SEBI Act, 1992 Shri Naved Masood Secretary, Ministry of Corporate Affairs Member Nominated under Clause 4 (1) (b) of the SEBI Act, 1992

SEBI: 

SEBI The Securities and Exchange Board Of India (SEBI) is the regulator for the securities market in India. It was formed officially by the government of India in 1992 with SEBI Act 1992 being passed by the Indian Parliament.

Mission of SEBI: 

Mission of SEBI Securities & Exchange Board of India (SEBI) formed under the SEBI Act, 1992 with the prime objective of Protecting the interests of investors in securities, Promoting the development of, and Regulating, the securities market and for matters connected therewith or incidental thereto.’ NOTE: Focus being the greater investor protection, SEBI has become a vigilant watchdog

Important role Of SEBI: 

Important role Of SEBI Power of the board to order investigation Power of investigating authority Prohibition to dealing in certain securities Prohibition of unfair trade practice, fraudulence Duty to Co-operate

Function of SEBI: 

Function of SEBI SEBI is expected to regulate the business in stock exchanges and any other securities market. ________________________________________________________________ Registering and regulating the working of collective investment schemes, including mutual funds is a responsibility of SEBI. ________________________________________________________________ SEBI is responsible for prohibiting fraudulent and unfair trade practices relating to securities markets. ________________________________________________________________ Prohibiting insider trading in securities , with the imposition of monetary penalties, on erring market intermediaries. ________________________________________________________________ Regulating substantial acquisition of shares and takeover of companies. ________________________________________________________________

Registration & regulation of the working of intermediaries.: 

Registration & regulation of the working of intermediaries.

Organization Structure: 

Organization Structure The activities of SEBI have been divided into 5 operational departments. Each department is headed by an Executive Director apart from its head office at Mumbai SEBI has regional offices in Kolkata, Chennai, Delhi to attend  to investor complaints and liaise with the issuers, intermediaries and stock exchanges in the concerned  region.

Continued…..: 

Continued….. SEBI has formed 2 advisory committees- Primary market advisory committee Secondary market advisory committee These committees are non statutory in nature and SEBI is not bound by the advice of the committees. These committees are a part of SEBIs constant endeavour to obtain feedback from the market players on issues relating to the regulations and development of the market.

Power:: 

Power: SEBI has the right to search and seizure where just cause can be given. In matters of security trading, SEBI has the power to restrict and allow trading in a given scrip without any external (i.e. judicial or executive) intervention. Mutual funds cannot invest more than 10 per cent of  the total net assets of a scheme in the short-term deposits of a single bank, said the Securities and  Exchange Board of India.

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Announcing guidelines for parking of funds in short-term deposits of scheduled commercial banks (SCBs) by mutual   funds, the regulator said that investment cap would also take into account the deposit schemes of the bank's subsidiaries. The SEBI has also defined 'short term' for funds' investment purposes as a period not exceeding 91 days.

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