SEBI (Securities and Exchange Board of India) is a centrally controlled body that is entrusted with the task of protecting the interest of investors in securities and promoting the growth of securities market by implementing suitable rules and norms. It was officially established by The Government of India in the year of 1992 with SEBI Act 1992, being passed by the Indian Parliament.
The office of SEBI is situated at SEBI Bhavan, Bandra Kurla Complex, Bandra East, Mumbai- 400051, with its regional offices at Kolkata, Delhi, Chennai & Ahmadabad. SEBI was given additional statutory power by the Government of India through an amendment to the Securities and Exchange Initially SEBI was a non statutory body without any statutory power. However in the year of 1995, the Board of India Act 1992. In April, 1998 the SEBI was constituted as the regulator of capital markets in India under a resolution of the Government of India.
Regulating the business in stock exchanges and any other securities market. Registering and regulating the working of intermediaries and player in the securities market. Registering and regulating the working of collective investment schemes, e.g. –mutual funds. Prohibiting fraudulent activities in the securities market. Prohibiting insiders trading in securities. Promoting investors education.
Primary Department Issue Management and Intermediaries Department Secondary Market Department Institutional Investment Legal and Investigation Department
SEBI has regulated: Primary Market Secondary Market Mutual Funds and Foreign Institutional Investments
To protect the interest of the investors and to bring back the small investors to the market. Entry and disclosure norms are tightened to prevent the exploitation of investors by the unscrupulous promoters. Entry norms Promoters contribution Disclosure Book building Allocation of shares Market intermediaries
SEBI has introduced a wide range of reformsin the secondary market. The importantareas are : Governing board Infrastructure Settlement and clearing Debt market Price Stabilization Delisting Brokers Insider trading
For the smooth conduct and regulation of themutual fund several guidelines have beenissued by SEBI regarding theinvestment, disclosure, accountabilitydistribution of its profits to its member andthe asset management companies. SEBI hasissued regulation and code of conduct in1993, that provide a basic legal frame workfor the functioning of the mutual fund.