SEBI was established in 1988 and regulates India's securities markets. It aims to protect investors, develop orderly markets, and regulate market intermediaries like brokers. Key functions include prohibiting insider trading, price rigging, and fraudulent practices. SEBI took over regulation of commodity derivatives in 2015. An important case was the 1992 Harshad Mehta stock market scam where he illegally drew funds from banks using fake receipts to profit from stock trading. The document also provides details on SEBI's structure, regional offices, and management.

1. Securities Exchange Board
Of India
Presented By :
Himanshu

2. Contents
• Overview
• Preamble
• Key Members
• Reasons for establishment of SEBI
• Functions of SEBI
• Case Study
• SEBI visit Experience

3. • SEBI stands for Securities Exchange Board of India.
• Regulates securities market in India.
• It was established in the year 1988 and given statutory powers on 30
January 1992 through the SEBI Act, 1992.
• Headquarters at bandra kurla complex mumbai.
• SEBI took over the Regulation of the Commodity Derivatives market on
September 28, 2015 as a result of merger of FMC with SEBI.

4. Commodities
• MCX
• NCX
• NCDX
Securities
• NSE (NEAT)
• BSE (BOLT)
SEBI

5. Preamble
"...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. The Organizational Structure of SEBI
1. SEBI is working as a corporate sector.
2. Its activities are divided into five departments. Each department is headed
by an executive director.
3. The head office of SEBI is in Mumbai and it has branch office in Kolkata,
Chennai, Delhi and Ahemdabad.
4. SEBI has formed two advisory committees to deal with primary and
secondary markets.
5. These committees consist of market players, investors associations and
eminent persons.

7. Regional Offices
Northern regional office
The Regional Manager, 5th Floor,
Bank of Baroda Building,16,
Sansad Marg, New Delhi - 110 001.
Southern regional office
The Regional Manager, Overseas
Towers,
7th Floor, 756-L,
Anna Salai, Chennai : 600002.
Eastern regional office
The Regional Manager, L&T
Chambers, 3rd Floor,
16 Camac Street,
Kolkata 700 017
Western regional office
Unit No: 002, Ground Floor
SAKAR I, Opp. Nehru Bridge
Ashram Road
Ahmedabad - 380 009

8. Management of SEBI
The Board of Members shall consist of following members :
• Chairman
• Two members from amongst the officials of the Ministry of Central Govt.
• One member from amongst the officials of RBI
• Five other members out of which at least three members shall be whole
time members who shall be appointed by Central Government.

9. Name Designation
Ajay tyagi Chairman
Gurumoorthy
Mahalingam
Whole Time Member
Rajeev Kumar Agarwal
S Raman
Shakti kanta das,
Economic affairs Secretary,
finance ministry
V Acharya Deputy Governor, Reserve Bank of India
Tapan Ray Secretary Ministry of Corporate Affairs
Prem Kumar Oberoi
Part Time Member
V. K. Jairath magya

10. Reasons for Establishment of SEBI
• To regulate the functions of securities market.
• SEBI promotes orderly and healthy development in the stock market
• It acts as a watch dog to observe the activities but was found ineffective in
regulating and controlling them.
• To build confidence and faith in the stock exchange.
• To protect the rights of investors and ensuring safety to their investment

11. Cont.
• To prevent fraudulent and malpractices by having balance between self
regulation of business and its statutory regulations.
• To regulate and develop a code of conduct for intermediaries such as
brokers, underwriters, etc.

12. Key groups
It was set up to meet the needs of three groups.
1. Issuers
2. Investors
3. Market Intermediaries.

13. Functions of SEBI:
1. Protective Functions:
It Checks Price Rigging
It Prohibits Insider trading
SEBI prohibits fraudulent and Unfair Trade Practices
2. Developmental Functions
3. Regulatory Functions

14. Case
Harshad Mehta Scam
Central Figure : Harshad Mehta
Discovered in : 1992
Estimated size : 4000 cr
Modus Operandi : Used money from banks to make personal gains via
investment in shares

15. Harshad Mehta
1. Indian Stock Broker
2. Started his career as a sales person in Mumbai Office Of New India
Assurance Co. Ltd.
3. In 1984 , he became the member of BSE (Bombay Stock Exchange) as a
broker and establish his own firm named “ Grow More Research and
Asset Management”.
4. By 1990, he had risen to a position in the Indian Securities Industry that
media called him by the name of “ The Amitabh Bachchan of the Stock
Market”.
5. By 1991, the media portrayed the highlightened image of Mehta by
calling him “ The Big Bull” as he was covered in a cover page article of
no. of publications including the popular Economic Magazine Business
Today in an article titled “ Raging Bull”.

16. How fraudulent activity done :
• In 1992, he frauduently drawn out the funds from the banks by the way
of Ready Forward Deals (RFD)
• RFD is a secured 15 days loan from one bank to another.
• The lending can be done only through govt securities.
• The borrowing bank sells the securities to lending bank and buys them
back at slightly higher price. This can be done through a broker only.
• The broker used Bank Receipts (BR) in lieu of securities that were
traded and treated as a receipt for money recd from buyer of
securities.

17. • Harshad Mehta colluded with a couple of banks which issued fake BRs.
• He then collected those fake BRs from those banks and passed on to other
banks which they were paid money assuming that they were paid money
assuming that they were lending against securities.
• This was then diverted to stocks and shares were sold at profits. And the BR
retired at the time to return money to the bank.
• Later Mehta was arrested by the investigation agency in Nov , 1992.
• He was charged with 70 criminal cases and over 600 civil action suits.
Some of the financial experts believe that Harshad Mehta did not commit any
fraud , “he simply exploited loopholes in the system”.

18. Experience
• TimesPro has organized a visit to the Securities and Exchange Board of
India (SEBI), Jaipur office on 24th march 2017 for the PGDBM students
• A lecture along with a presentation was delivered by Mr. Rajesh Kumar,
Assistant Manager, in the training hall of the office.
• The students were also shown some video clips on investor awareness,
along with the screenshots of screen based trading of BSE and NSE.
• Thus the session proved to be very interesting and informative. It provided
the students a glimpse of the regulating authority of security market in
India, along with important information for being an aware investor