sebi role and function

2.  The securities and exchange board of india (SEBI) was 1st
established in the year 1988 by the government of india.
And was upgraded as fully autonomous body ( given
statutory powers ) on 12 april 1992 through the SEBI act
1992.
 It is the apex body to develop and regulate the stock market
in India.
 It is known as the watchdog of Indian Capital Market.

3. 1. New Delhi
2. Kolkata
3. Chennai
4. Ahmadabad
1. Jaipur
2. Bangalore
3. Guwahati
4. Bhubaneswar
5. Patna
6. Kochi
7. Chandigarh
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SEBI Bhavan, Mumbai Headquarters (in
Bandra Kurla Complex)
Local Offices

4. (Present SEBI Chairman)
Appointed on 8 feb 2014
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5. The board shall consist of the following members :-
 Chairman
Two members/officer from the union finance ministry.
One member/officer from the Reserve Bank of India.
The remaining five members are nominated by the
Government of India, out of them at least three should be
whole-time members.
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6.  SEBI was set up with the main purpose of keeping a
check on malpractices and protect the interest of
investors. It was set up to meet the needs of three
groups
 Issuers:
◦ For issuers it provides a market place in which they can raise
finance fairly and easily
 Investors:
◦ For investors it provides protection and supply of accurate and
correct information
 Intermediaries:
◦ For intermediaries it provides a competitive professional market

7. The overall objectives of SEBI is :-
To protect the rights and interest of investors in
securities .
To promote the development and regulate the
securities market .
To prevent trading malpractices and Ensure fair
practices by the issuers of securities so that they
can be raised at minimum cost.
To regulate and develop code of conduct for
market intermediaries like brokers, merchant
bankers etc so that they become competitive

8. SEBI has 3 functions rolled into 1 body:-
Quasi legislative
Quasi executive &
Quasi judicial
Section 11 of the SEBI Act,1992 classifies the functions of SEBI under
2 heads:-
1) Regulatory Functions
2) Developmental Functions.
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9. i. Regulating the business in stock exchange and other
securities market.
ii. Registration and regulation of the working of collective
investment schemes including mutual funds.
iii. Regulating substantial acquisitions of shares and take over
of companies.
iv. Prohibition of fraudulent and unfair trade practices relating
to securities market.
v. Prohibiting of insider trading.
vi. Calling for information for carrying out inspection
vii. Auditing the stock market and intermediaries associated
with with it.
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10. These functions are performed by the SEBI to promote and
develop activities in stock exchange and increase the
business in stock exchange. Under developmental
categories following functions are performed by SEBI:
1. Promoting investors education.
2. Training of intermediaries.
3. Conducting research and publishing information
useful to all market participants.
4. Promoting of fair practices.
5. SEBI has permitted internet trading through
registered stock brokers.
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11. For the discharge of its functions efficiently, SEBI has been vested
with the following powers:
 Is empowered to register any agency associated with the
securities market.
 Can suspend or cancel a certificate issued by it anytime in case
of any reasonable wrong done.
 It also lays down the civil and criminal penalties for contravention
of the act( breaking the rule)
 Power to approve byelaws of recognized stock exchanges.
 Power to inquiry the working of stock exchanges which have to
submit their annual reports to SEBI.
 To inspect the books of accounts of a financial intermediaries.
 Power to compel listing of securities by public companies.
 Power to grant registration to market intermediaries.
 Power to grant license to dealers.
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12.  The Central Government has power to issue directions to SEBI Board, and
also to supersede the Board if necessary and to call for returns and reports
when necessary.
 The Central Government has also power to give any guideline(s) or to make
regulations and rules for SEBI and its operations.
 SEBI is also financed by central government.
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13. Department of Commerce, Mar
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