•SEBI (Securities Exchange Board of India) was
constituted on april 12, 1988 as a non-statutory body.
•It is an apex body to develop and regulate the stock
market in India.
•SEBI is the regulator for the securities market in India ,
originall set up by the govt. of India in 1988, it acquired
statutory form in 1992 with SEBI Act,1992 being passed
by the Indian Parliament.
In 1988 the securities and exchange board of
India was established by government of india
through an executive resolution and was
subsequently upgraded as a fully autonomous
body (a statutory body) in the year 1992 with
the passing of securities and exchange board of
india act (SEBI act) on 30th janury 1992.
•Shall be a body corporate with perpetual succession
an common seal with power to acquire hold and
dispose of Salient features of SEBI act 1992property.
•Head Office will be in Mumbai and may establish
offices at other places in India.
•Chairman and members of board will be appointed by
the central government.
•Government can prescribe terms of offices and other
conditions of service of the board and chairman.
•Primary duties of the board is to protect the interest of
SALIENT FEATURES OF SEBI ACT 1992
The board shall consists of the following members :-
• Two members, one from amongst the officials of the Central
government dealing with finance and another from the
administration of Companies Act,1956.
• One member from amongst the officials of the Reserve Bank
• Five other members of whom at three shall be the whole time
members to be appointed by the Central Government.
STRUCTURE OF SEBI
• Power to make rules for controlling stock
• To provide license to dealers and brokers
• To Stop fraud in Capital Market
• To Control the Merge, Acquisition and Takeover
• To audit the performance of stock market
• To make new rules on carry - forward
• To create relationship with ICAI
IMPORTANCE OF SEBI
• Power to direct enquiries to be made in relation to
affairs of stock exchanges or their members.
• Power to make or amend bye-laws of recognized
• Power to grant registration to market
• Power to declare applicability of section 17 of the
securities contract (regulation) act 1956 in any
state or area to grant licenses to dealers
POWERS OF SEBI
OBJECTIVES OF SEBI
The primary objective of SEBI is to promote healthy and
orderly growth of the securities market and secure investor
protection.The objective of SEBI are as follows:-
• To protect the interest of investors, so that , there is a steady
flow of savings into to the capital market.
• To regulate the securities market and ensure fair practices.
• To promote efficient services by brokers , merchant bankers
and financial intermediaries, so that, they become
competitive and professional.
FUNCTIONS OF SEBI
The SEBI act 1992 has entrusted with
two functions they are :
• Regulatory functions and
• Developmental functions
• Regulation of stock exchanges and self regulatory
• Registration and regulation of stock brokers , sub-brokers ,
registrars of all issues, merchant bankers, underwriters,
• Registration and regulation of the working of collective
investment schemes including mutual funds.
• Prohibition of fraudulent and unfair trade practices relating
to securities market.
• Prohibiting of insider trading.
• Promoting investors education.
• Training of intermediaries.
• Conducting research and publishing
information useful to all market participants.
• Promoting of fair practices.
• Promotion of self regulatory organisations.
• Market support
• Investors confidence
• Increased demand for products and
• Overall increase in profitability
Stock exchange can de list companies for
a number of reasons including :-
• Merger with another company
• Solvency problems
• Failure to comply with exchange rules