Securities and Exchange Board of India

1. Securities and Exchange Board of
India
भारतीय प्रततभूतत और वितिमय बोर्ड
By:-KULDEEP MATHUR
MBA 1st SEM.
SESSION 2016-18
JIWAJI UNIVERSITY GWALIOR

2. INTRODUCTION
The Securities & Exchange Board of India (SEBI)
was set up by the Ministry of Finance on 12th
April, 1988. At early stages for more than
three years, it had no statutory powers.

3. Its Basic Function during that period
were:-
1. To collect information and advice the Government on
matters relating to Stock and Capital Markets.
2. Licensing and regulation of merchant banks, mutual
funds etc.
3. To Prepare the Legal draft for regulatory and
developmental role of SEBI.
4. To Perform any other functions as may be entrusted
to it by the Government.

4. ESTABLISHMENT OF SEBI
The Securities and Exchange Board of
India was established on April 12th,
1992 in accordance with the provisions
of the Securities and Exchange Board of
India Act, 1992.

5. The Securities and Exchange
Board of India Act, 1992
“An Act to provide for the establishment of
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. THE SEBI ACT, 1992
The SEBI Act, 1992 came into force on 30th
January, 1992, on the date of promulgation of
the SEBI Ordinance, The Bill to replace the
Ordinance was passed by both Houses of
Parliament on 1st April, 1992 and became an
Act on 4th April 1992, the date which it
received the assent of the President of India.

7. AN OVERVIEW OF SEBI
Formed: 12 April, 1992
Jurisdiction: Government of India
Headquarter: Mumbai, Maharastra
Employees: 643 (in 2012)
Website: www.sebi.gov.in

8. OFFICIAL WEBSITE OF SEBI

9. LOGO OF SEBI

10. HEADQUARTER OF SEBI
SEBI Bhavan, Mumbai headquarters

11. Tagline of SEBI
Har Investor ki Takat
(SEBI — the strength of every investor).

12. BOARD MEMBERS

15. Addresses of Offices of SEBI
Head Office : Mumbai (Bombay)
North Zone : New Delhi
South Zone : Chennai
East Zone : Kolkata
West Zone : Ahmedabad

16. HISTORY OF SEBI
It was established by The Government of India on 12 April 1992 and given statutory
powers in 1992 with SEBI Act 1992 being passed by the Indian Parliament. SEBI has
its headquarters at the business district of Bandra Kurla Complex in Mumbai, and has
Northern, Eastern, Southern and Western Regional Offices in New
Delhi, Kolkata, Chennai and Ahmedabadrespectively. It has opened local offices at
Jaipur and Bangalore and is planning to open offices at Guwahati, Bhubaneshwar,
Patna, Kochi and Chandigarh in Financial Year 2013 - 2014.
Controller of Capital Issues was the regulatory authority before SEBI came into
existence; it derived authority from the Capital Issues (Control) Act, 1947.
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 1988 the SEBI was constituted as the regulator of capital markets in India under
a resolution of the Government of India.

17. CONSTITUTION AND MANAGEMENT
OF THE BOARD
Section 4 of the Act Provides for the constitution of the Board of Members.
1. A chairman to be appointed by the Central
Government.
2. Two members from amongst the officers of the Ministry
of the Central Government deal with Finance and Law,
to be nominated by the Central Government.
3. One member from amongst the officers of the Reserve
Bank of India, to be nominated by RBI.
4. Two other members appointed by the Central
Government.

18. SEBI has to be responsive to the needs of
three groups, which constitute the
market:
• The issuers of securities
• The investors
• The market intermediaries.

19. Powers of SEBI
1. to approve by−laws of stock exchanges.
2. to require the stock exchange to amend their
by−laws.
3. inspect the books of accounts and call for periodical
returns from recognized stock exchanges.
4. inspect the books of accounts of financial
intermediaries.
5. compel certain companies to list their shares in one
or more stock exchanges.
6. registration brokers.

20. Functions of SEBI:
According to Sec. 11 of the act, the function of
the Board are as under:-
1.Regulatory functions
2.Developmental functions
3.Capital Issue

21. 1.Regulatory functions
It includes the following:-
i. Registration of brokers and sub-brokers and other
players in the market.
ii. Registration of collective investment Schemes and
Mutual funds.
iii. Registration of Stock Exchanges and other S.R.Os.
(Self Regulatory Organization)
iv. Prohibition of all fraudulent and unfair trade
practices.
v. Controlling Insider Trading and take over bids and
imposing penalties for such practices.

22. 2.Developmental functions
It includes the following function:-
i. Investors education.
ii. Training of Intermediaries.
iii. Promotion of fair practices and a code of
conduct for all S.R.Os.
iv. Conducting Research and Publication
information useful to all market participants.

23. 3. Capital Issue
If a company has been registration and has
received the certificate of incorporation from
the Registrar of companies, it is ready to raise
capital sufficient to commence business and
to carry it on satisfactorily.
A company raises its shares capital in the first
instance by issuing shares, Initially it is mostly
from the promotes/directors of the company.

24. Objectives of SEBI
1. To regulate the activities of stock exchange.
2. To protect the rights of investors and ensuring
safety to their investment.
3. To prevent fraudulent and malpractices by
having balance between self regulation of
business and its statutory regulations.
4. To regulate and develop a code of conduct for
intermediaries such as brokers, underwriters,
etc.

25. Purpose and Role of SEBI:
SEBI was set up with the main purpose of keeping a check on malpractices
and protect the interest of investors. It was set up to meet the needs of
three groups.
1. Issuers:
For issuers it provides a market place in which they can raise finance fairly
and easily.
2. Investors:
For investors it provides protection and supply of accurate and correct
information.
3. Intermediaries:
For intermediaries it provides a competitive professional market.

26. The Organisational 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 and Delhi.
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.

27. Committees of SEBI
1. Technical Advisory Committee
2. Committee for review of structure of market
infrastructure institutions
3. Advisory Committee for the SEBI Investor Protection
and Education Fund
4. Takeover Regulations Advisory Committee
5. Primary Market Advisory Committee (PMAC)
6. Secondary Market Advisory Committee (SMAC)
7. Mutual Fund Advisory Committee
8. Corporate Bonds & Securitization Advisory Committee

28. List of former Chairmen:

29. Bibliography
1.www.sebi.gov.in/sebiweb
2.en.wikipedia.org/wiki/Securities_and_Exchange_Board_of
_India
3.www.yourarticlelibrary.com/education/sebi-the-purpose-
objective-and-functions-of-sebi/8762/
4.Business Environment (Book) BY: S.L Kohli & N.K. Resutra