2. ESTABLISHMENT
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
January 1992.
3. Structure of SEBI
The board shall consists of the following members:-
1. Chairman
2. Two members, one from amongst the officials of the Central
Government dealing with finance and another from the
administration of Companies Act of 1956.
3. One members from amongst the officials of the Reserve Bank
of India.
4. Five other members of whom at least three shall be the whole-
time members to be appointed by the Central Government.
4. MISSION OF SEBI
• Protecting the interests of investors in securities,
• Promoting the development of, and
• Regulating the securities market and for matters
connected therewith or incidental thereto.
Focus being the greater investor protection, SEBI has
become a vigilant watchdog.
5. Functions of SEBI
The SEBI Act 1992 has entrusted SEBI with two
functions. They are:
1. Regulatory functions
2. Developmental functions
6. Regulatory functions
• Regulation of stock exchanges and self regulatory
organizations.
• Registration and regulation of stock brokers , sub-brokers
, registrars of all issues, merchant
bankers, underwriters, portfolio managers..etc
• 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.
• Regulating substantial acquisition of shares and takeovers of
the company.
7. Developmental functions
• Promoting investors education.
• Training of intermediaries.
• Conducting research and publishing information
useful to all market participants.
• Promoting of fair practices.
• Promotion of self regulatory organizations.
8. Powers of SEBI
• Power to call periodical returns from recognized
stock exchanges .
• Power to compel listing of securities by public
companies.
• Power to levy fees or other changes for carrying out
the purposes of regulation.
• Power to grant approval to bye-laws of recognized
stock exchanges.
• Power to control and regulate stock exchanges.
9. POWERS OF SEBI
• Power to call information or explanation from
recognized stock exchanges or their members.
• 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
stock exchanges.
• Power to grant registration to market intermediaries
• Power to declare applicability of section 17 of the
Securities Contract (regulation) Act 1956 in any state
or area to grant licenses to dealers
