Securities exchange board of india final


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Securities exchange board of india final

  1. 1. Priya Ayare 02 Shraddha Rawool 49 Meena Kumari 51 Amrin Fodkar 57 Priyanka Kasat 58
  2. 2. INTRODUCTION <ul><li>Securities and Exchange Board of India (SEBI) was first established in the year 1988 as a non-statutory body for regulating the securities market. </li></ul><ul><li>It became an autonomous body in 1992 and more powers were given through an ordinance. Since then it regulates the market through its independent powers. </li></ul>
  3. 3. ORGANIZATION STRUCTURE <ul><li>The Board shall consist of the following members, namely:- </li></ul><ul><li>A chairman- Mr.U.K.Sinha </li></ul><ul><li>Two members, one from amongst the officials of the Ministry of the central government dealing with Finance and second from administration of the companies Act 1956 </li></ul><ul><li>One member from amongst the officials of the Reserve Bank of India. </li></ul><ul><li>Five other members of whom at least three shall be the whole time members to be appointed by the central Government. </li></ul>
  4. 4. REASON FOR ESTABLISHMENT OF SEBI <ul><li>The capital market had witnessed a tremendous  growth during the 1980’s characterized by the increasing participation of the public. </li></ul><ul><li>This ever expanding investor population led to a variety of malpractices on the  part of companies, brokers , investment consultants and others involved in the securities market. </li></ul><ul><li>These malpractices and unfair trade practices have eroded investor confidence and multiplied investor  grievances  </li></ul><ul><li>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. </li></ul><ul><li>Therefore it was decided to set up SEBI a separate regulatory body  </li></ul>
  6. 6. FUNCTIONS <ul><li>Regulation of Business In The Stock Exchanges </li></ul><ul><li>Registration And Regulation of the Working of Intermediaries </li></ul><ul><li>Registration And Regulation of the working of mutual funds </li></ul><ul><li>Promoting &Regulating Self- Regulatory Organizations </li></ul>
  7. 7. <ul><li>Prohibiting Fraudulent and Unfair Trade Practices in the Securities Market </li></ul><ul><li>Prohibition of Insider Trading </li></ul><ul><li>Promoting Investor Education and the Training of Intermediaries </li></ul><ul><li>Regulating acquisition of shares and take-over of companies </li></ul>
  8. 8. SEBI REGULATES SEBI regulates Primary Market Secondary Market Mutual Funds Foreign Institutional Investment
  9. 9. Primary Market <ul><li>Primary market of capital market plays a significant role in helping mobilisation of capital and investment formation. Many types of intermediaries carry out this role very effectively </li></ul>
  10. 10. Secondary Market <ul><li>Secondary market is a market where securities are traded after initially being offered to the public in the primary market and/or listed on the Stock Exchange. Maximum of the trading is done in the secondary market. </li></ul>
  11. 11. Mutual Fund <ul><li>It’s a type collective investment that pools money from many investors to buy stocks, bonds, short-term money market instruments, and other securities </li></ul><ul><li>SEBI notified the regulation for the mutual fund 1993 </li></ul>
  12. 12. Foreign Institution Investor <ul><li>A Foreign Institutional Investor may invest only in the following :— </li></ul><ul><li>(a) securities in the primary and secondary markets including shares, debentures of companies unlisted, listed or to be listed on a recognized stock exchange in India; </li></ul><ul><li>(b) units of scheme floated by domestic mutual funds including Unit Trust of India, whether listed on a recognized stock exchange or not; </li></ul>
  13. 13. PENALTIES AND ADJUDICATION <ul><li>Penalty for failure to furnish information, return. </li></ul><ul><li>Penalty for failure by any person to enter into agreement with clients. </li></ul><ul><li>Penalty for failure to redress investors grievances. </li></ul><ul><li>Penalty for certain defaults in case of mutual funds. </li></ul><ul><li>Penalty for failure to observe rules and regulation by any asset management company </li></ul>
  14. 14. <ul><li>Penalty for default in case of stock brokers </li></ul><ul><li>Penalty for insider trading </li></ul><ul><li>Penalty for fraudulent and unfair trade practices </li></ul><ul><li>Penalty for contravention where no separate penalty has been provided </li></ul>
  15. 15. CURRENT UPDATES IN SEBI <ul><li>Upgrade surveillance system for detecting manipulators. </li></ul><ul><li>Activates web based complaints redress system.  </li></ul><ul><li>Amends rule to check black money, tax evasion in market. </li></ul><ul><li>Impose Rs100 as transaction fee on MF investments. </li></ul><ul><li>Consent order system under review. </li></ul>
  16. 16. REGULATION BY SEBI: CASE: DECCAN-CHRONICLE HOLDINGS LTD. <ul><li>SEBI allowed Deccan Chronicle Holdings Ltd to buy back 3.45 crore share or 14.17 per cent equity from the market at an estimated cost of Rs.270 crore. </li></ul><ul><li>This will be the second time Deccan Chronicle would come out with an offer to buy-back its shares following which equity of the promoter in the company could go upto 73.83 percent to 63.37 percent currently. </li></ul>
  17. 17. <ul><li>SEBI while exempting Deccan Chronicle from making the mandatory public announcement before coming out with the buy-back offer has , however , asked the company “not of seek any further exemption pursuant to any further buy-back”. </li></ul><ul><li>Referring to the general issue of companies buying back their own shares , SEBI order said “Repeated buy back offers by a company is not something that SEBI , as a regulator , would like to encourage .Given the fact that it would misused by entities to consolidate their holding at an expense of the company </li></ul>
  18. 18. Thank you…