sebi ppt by md ashraf

2. INTRODUCTION
• Securities and exchange board of India (SEBI)
was first established in the year 1988 as a
non-statutory body for regulating the
securities market.
• It become an autonomous body in 1992 and
more power were given through an ordinance.
Since then it regulates the market through its
independent powers.

3. ORGANIZATION STRUCTURE
• The board shall consist the following members
namely:-
• A chairman- Mr. U.K.Sinha
• Two members, one from amongst the official
of the ministry of the central government
dealing with finance and second from
administration of companies Act 2013.

4. • One member from amongst the officials of
reserve bank of India.
• Five other members of whom at least three
shall be the whole time members to be
appointed by the central government.
.

5. REASONS FOR ESTABLISHMENT OF
SEBI
• started in stock markets such as price rigging
• unofficial premium on new issue
• delay in delivery of shares
• violation of rules and regulations of stock
exchange and listing requirements
• So government of India decided to set up an
agency or regulatory body known as Securities
Exchange Board of India (SEBI)

6. OBJECTIVES OF SEBI
• The overall objectives of SEBI are to protect
the interest of investors and to promote the
development of stock exchange and to
regulate the activities of stock market. The
objectives of SEBI are:
• To regulate the activities of stock exchange.
• To protect the rights of investors and ensuring
safety to their investment.

7. FUNCTIONS OF SEBI
• Protective Functions:
These functions are performed by SEBI to
protect the interest of investor and provide
safety of investment
• Developmental Functions:
These functions are performed by the SEBI to
promote and develop activities in stock
exchange and increase the business in stock
exchange.

8. FUNCTION OF SEBI CONT...
• Regulatory Functions:
These functions are performed by SEBI to
regulate the business in stock exchange. To
regulate the activities of stock exchange.

10. PRIMARY MARKET
• 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.

11. SECONDARY MARKET
• 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.

12. MUTUAL FUND
• It’s a type collective that pools money from
many investors to buy stock, bonds, short
term money market instruments, and other
securities
• SEBI notified the regulation for the mutual
fund 1993

13. Foreign institution investor
• A foreign institutional investor may invest only
in the following ;-
• (a) securities in the primary and secondary
markets including shares, debentures of
company unlisted, listed or to be listed on a
recognized stock exchange in India.
• (b) units of scheme floated by domestic
mutual funds including unit trust of India.

14. POWER OF SEBI
• Power to call periodical return from
recognized stock exchange.
• Power to compel of securities by public
company.
• Power to levy fees or other changes for
carrying out the purposes of regulation.
• Power to call information or explanation from
recognized stock exchange or their members

15. POWER OF SEBI CONT...
• Power to grant approval to bye-laws of
recognized stock exchange.
• Power to control and regulate stock exchange.