This presentation is related to SEBI ( Securities and Exchange Board of India).

1. SEBI
Security and exchange
board of India

2. Formed: 12th April 1992
Jurisdiction: Government of India
Headquarters: Mumbai, Maharashtra
•The security and Exchange Board of India was
established on April 12, 1992 in accordance with
the provision of the Security and Exchange Board
of India Act, 1992.
• Its main function is to stop fraudulent activities
of stock market.

3. Security andexchange boardof India act, 1992
An Act to provide for the
establishment of a Board to
protect the interests of investors
in securities and to promote the
development of, and to regulate,
the securities market and for
matters connected therewith or
incidental thereto.

6. BOARD MEMBERS
Mr. U.K. Sinha
(Chairman)
Mr. Parshant Saran
(Whole-time member)
Mr. V.K Jairath
(Member appointed)

7. •Initially SEBI was a non statutory body without
any statutory power.
•However in 1995, the SEBI was given additional
statutory power by the Government of India
through an amendment to the securities and
Exchange Board of India Act 1992.
•In April 1998,the SEBI was constituted as the
regulator of capital market in India under a
resolution of the Government of India.

8. Role of sebi in mutual FUNDS
• SEBI notified regulations for the mutual
funds in 1993.
• SEBI has also issued guidelines to the
mutual funds from time to time to protect
the interests of investors.
• All mutual funds whether promoted by
public sector or private sector are
governed by SEBI.

9. The objectives of SEBI are as follows:
a) Protection of the interests of investors in securities.
b) Promoting orderly and healthy growth of the securities
market.
c) Regulation of the securities market and other incidental
matters.
d) Promoting the fair dealings by the issuer of securities and
ensuring a market place where they can raise funds at a
relatively low cost.
e) Regulating and developing a code of conduct and fair
practices by intermediaries like brokers, merchant bankers
etc, with a view to making them more competitive and
professional.
f) Monitoring the activities of stock exchanges, mutual funds
and merchant bankers etc.

10. 1. SEBI performs following functions:
a)Regulating the business in stock exchange and
any other securities markets.
b)Registering and regulating the working of stock
brokers, sub- brokers, share transfer agents,
bankers to an issue, trustees of trust deeds,
registrars to an issue, merchant bankers,
portfolio managers, investment advisors.

11. c)Prohibiting fraudulent and unfair trade
Practices relating to security markets.
2. The duty of Board to protect the interests of
investors in securities and to regulate the
securities market.
3. Board have some powers as issuing
commissions for the examination of witnesses
or documents.

12. 1. SEBI has to be responsive to the needs of three
groups, which constitute the market:
a) The issuers of securities
b) The investors
c) The market intermediaries
2. SEBI has three functions rolled into one body:
Quasi- legislative, quasi- judicial, quasi- executive.

13.  Investigation
Inspect the books of accounts and call for periodical
returns from recognized stock exchanges.
Inspect the books of accounts of a financial intermediaries.
Compel certain companies to list their shares in one or
more stock exchanges.
Cease or desist proceedings:
Prosecute and judge directly the violation of certain
provisions of the companies Act.

14. Eligibility Norms for companies issuing security:
No company shall make any issue of a public issue of
securities, unless a draft prospectus has been filed with the
Board, through an eligible Merchant Banker, at least 21 days
prior to filing of prospectus with the Registrar of Companies
(ROCs).

15. Pricing By Companies Issuing Securities:
A listed company whose equity shares are listed on a stock
exchange, may freely price its equity shares and any
security convertible into equity at a later date, offered
through a public or rights issue.
Pre issue Obligations:
The standard of due diligence shall be such that the
merchant banker shall satisfy himself about all the aspects
of offering, veracity and adequacy of disclosure in the offer
documents.

16. Contents of offer documents:
Prospectus shall also contain all material
information which shall be true and adequate so as
to enable the investors to make informed decision
on the investments in the issue.