Securities and Exchange Board of India

1. Prepared
By,
KrishnaKumar SN

2. THE SECURITIES AND
EXCHANGE BOARD OF
INDIA (SEBI)

3. INTRODUCTION
• SEBI was established in the year 1988 & given
statutory powers on 12th April, 1992.
• SEBI is the regulator for securities market.
• It has headquarters at Mumbai in Bandra
Kurla complex.
• In April 12, 1988 the SEBI was constituted as
the regulator of capital market.

4. FUNCTIONS & RESPONSIBILITIES
The SEBI is the regulatory authority of
India under sec 3 of SEBI act, 1992. It
has statutory power for :
• Protecting the interest on investors.
• Promoting the developing of market.
• Regulating the securities market.

5. It has power for :
• Regulating the business in stock exchange & any
other securities markets.
• Registering & regulating the working of stock
brokers, sub-brokers etc.
Register
 Authority
• Promoting & regulating self-regulating
organization.
• Prohibiting fraudulent & unfair trade practices.

6. ORGANISATION
SEBI has divided its activities in to three operational
departments, each headed by an Executive Director.
 Primary Market Department: It deals with all
policy matters and regulatory issues relating to
primary market.
 Issue Management and Intermediaries
Departments : This department is concerned with
inspection of offer documents and other things like
registration, regulation and monitoring of issue
related to intermediaries.

7. Secondary Market Department: It looks after all
the policy and regulatory issues for the secondary
market; administration of the major stock
exchanges and other matters related to it.

8. WHO DECIDES THE PRICE OF SHARES?
 SEBI does not play any role in price fixation.
There are two types of issues
 Company and the Lead Merchant Banker fix a
price called fixed price.
Price discovery through book building process.

9. Shares
A share is a unit of account for
various investments. It often means
the stock of a corporation, but is also
used for collective investments such
as mutual funds, limited
partnerships, and real estate
investment trust.

10. Equity Shares
An equity share, commonly referred
to as ordinary share, represents the
form of fractional ownership in a
business venture.

11. Bonds
It’s a debt instrument, a contract
whereby one party lends money to
another on pre-determined terms
with regards to rate and periodicity
of interest, repayment of principal
amount by the borrower to the
lender.

12. Derivative
Derivative is a product whose value
is derived from the value of one or
more basic variables, called
underlying.

13. Debenture
The company will issue the shares to
public when it needs amount for
expansion for business.

14. Preference Shares
Preference shares are those, which
enjoy the following two preferential
rights:
• Dividend at a fixed rate or a fixed
amount on these shares before any
dividend on equity shares.
• Return on preference share capital
before the return of equity share capital
at the time of winding up of the
company.

15. Conclusion
• Today SEBI has become the authorisation
body to form the rules & regulation for
the stock markets in both capital &
money market due to the emergence of
SEBI the number of unethical practices in
share market has been reduced
proportionately. It shows the active
participation of the exchange board in
order to control & regulate the trading
activities.

16. • It is suggested that more power to
be handled to SEBI from the union
government in order to mitigate the
unethical practices like insider
trading & stock market frauds
(sathyam scam, DLF) are to be
identified & protect the interest of
the individual as well as institution
investor.

17. Thank You