SEBI (Securities and Exchange Board of India) was constituted in 1988 as the apex regulatory body for securities markets in India. It regulates the securities markets, including the stock exchanges. SEBI has its headquarters in Mumbai and regional offices in major cities across India. It is composed of a chairman and other full-time and part-time members appointed by the central government of India. SEBI was established to protect investors, ensure orderly development of the securities market, and regulate securities exchanges. It performs various regulatory, developmental and protective functions towards these objectives, such as prohibiting insider trading and price manipulation.

1. INTRODUCTION
• SEBI(Securities and Exchange board of India)
was constituted on April 12,1988asanon-
statutory body by central government in
official gazzette.
• It is an apex body to develop and regulate the
stock market inIndia.
• SEBIis the regulator for the securities market in
India, originally set up by the Government of India
in 1988, it acquired statutory from in 1992with
SEBIAct 1992 being passed by the Indian
Parliament.

2.  HEADQUTERS:
Bandra Kurla Complex in
Mumbai, Maharashtra, andhasNorthern,
Eastern, Southern and Western Regional
Offices in New
Delhi, Kolkata, Chennai andAhmedabad
respectively.
It hasopened local offices at JaipurandBangalore
andwasplanning to open offices at Guwahati,
Bhubaneswar,Patna, KochiandChandigarhin
FinancialYear2013- 2014.
 Location of SEBI

3. Composition of SEBI
• Chairman ofSEBIis been appointed by the
Central Government of India.
• Two members, i.e. officers central
government.
• One member from RBI.
• The remaining five members, Out of them
at least three shall be whole time
members.

4. REASONSFORESTABLISHMENT OF
SEBI
• Protection of investor’s interest.
• Growth of securities market
• Regulation of securities market
• No Violation of rules and regulations of
stock exchange and listing
requirements.
• Code of conduct for various
intermediaries
• Watch dog as it monitors the activities of
securities market

5. DEFINATION
• Whole TimeMember:
Aperson who works for minimum 35to 40
hours a week are counted asan whole time
member.
• Part TimeMember:
Aperson who works between 1to 34 hours a
week.

6. OBJECTIVESOF SEBI
• The overall objectives of SEBIare to protect the
interest of investors and to promote the
development of stock exchange and to
regulate the activities of stock market. The
objectives of SEBIare:
To regulate the activities of stock exchange.
To protect the rights of investors and
ensuring safety to their investment.

7. Toregulate and develop acode of conduct
for intermediaries such asbrokers,
underwriters, etc.
To prevent fraudulent and malpractices by
having balance between self regulation of
business and its statutoryregulations.
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8. Powers&FUNCTIONSOF
SEBI
• The SEBIperforms functions to meet its
objectives. Tomeet three objectivesSEBI
has three important functions.These are:
1. Protective functions.
2. Developmental functions.
3. Regulatory functions.

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1.ProtectiveFunctions:
These functions are performedby SEBIto
protect the interest of investor and provide safety of
investment.
• Asprotective functions SEBIperforms following
functions:
(i) It ChecksPriceRigging:
Price rigging refers to manipulating the prices
of securities with the main objective of inflating or
depressing the market price of securities. SEBIprohibits
such practice because this can defraud and cheat the
investors.

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(ii) It ProhibitsInsider trading:
Insider is any person connected with the company such
asdirectors, promoters etc. These insiders have sensitive
information which affects the prices of the securities. This
information is not available to people at large but the insiders
get this privileged information by working inside the company
and if they use this information to make profit, then it is
known asinsider trading,
e.g., the directors of acompanymayknow thatcompanywill
issueBonussharesto its shareholders at the end of year and
they purchase sharesfrom market to make profit withbonus
issue.Thisisknown asinsider trading. SEBIkeepsastrict
checkwhen insiders are buying securities of the company
andtakes strict action on insidertrading.

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2. DevelopmentalFunctions:
These functions are performed by the SEBIto promote
and develop activities in stock exchange and increase the
business in stock exchange. Under developmentalcategories
following functions are performed by SEBI:
 SEBItries to promote activities of stock exchange by
adopting flexible and adoptable approach in following way:
(A) SEBIhas permitted internet trading through registered
stock brokers.

12. (B)Even initial public offer of primary market
is permitted throughstock exchange.
(C)Promoting investor education and training
of intermediaries.
(D)It regulates the substantial acquisition of
shares and take-over of companies.
(E)It can seek inormation ,undertake
inspection,conduct inquiries and audits of
stock exchange, banks etc.
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3. RegulatoryFunctions:
These functions are performed by SEBIto regulate the business
in stock exchange. Toregulate the activities of stock exchange following
functions areperformed:
1.SEBIregisters and regulates the working of stock brokers, sub-brokers,
share transfer agents, trustees, merchant bankers and all those who are
associated withstock exchange in any manner.
2. SEBIregisters and regulates the working of mutual funds etc.
3. SEBIregulates takeover of thecompanies.
4. SEBIconducts inquiries and audit ofstock exchanges.
5. Regulates the working of credit rating agencies,depositaries,foreign
institutional investors, venture capital funds, portfolio managers/investment
advisors.
6. Regulates the working of credit rating agencies, venture capital funds.

14. Prospectus/offer document
The board may, for the protection of investors, specify,
1)By regulations
The matters relating to issue of capital, transfer of securities and
other matters.
The manner in which such matters shall be disclosed by the
companies
2)By general or special orders
Prohibits or special orders prohibits any company from issuing
prospectus ,any offer document or advertisement soliciting money
from public for the issue of securities
Specify the conditions subject to which the prospectus ,such offer
document or advertisement, may be issued.
Board may specify the requirements for listing and transfer of
securities and other matters

15. Mutual fund

16. SEBIRegulates
SEBI
Regulates
Primary
Market
Secondary
Market
Mutual
Fund
Foreign
Institutional
Investment

18. Rules of SEBI
2014 Companies (Issue of Global Depositories Receipts) Rules, 2014
2014 Companies (Prospectus and Allotment of Securities) Rules,2014
2014 Companies (Share Capital and debentures) Rules,2014
2005 Depositories (Procedure for Holding Inquiry and Imposing Penalties
by Adjudicating Officer)Rules, 2005
2005 Securities Contracts (Regulations) (Procedure for Holding Inquiry
and Imposing Penalties by Adjudicating Officer) Rules,2005
2004 Securities Transaction TaxRules,2004
2003 Securities Appellate Tribunal (Salaries, Allowances and otherTerms and
Conditions of Presiding Officer and other Members) Rules, 2003

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2000 Securities Appellate Tribunal (Procedure)Rules, 2000
2000 Securities Contracts (Regulations) (Appeal to Securities Appellate
Tribunal) Rules,2000
1998 Depositories (Appeal to Central Government) Rules, 1998
1997 Securities AppellateTribunal (Salaries and Allowances and other
Conditions of Service of the Officers and Employees)Rules, 1997
1997 Securities Contracts (Regulations) Rules,1957
1995 SEBI(Procedure for Holding Inquiry and Imposing Penalties by
Adjudicating Officer) Rules,1995
1994 SEBI(Annual Report) Rules,1994
1994 SEBI(Form of Annual Statement of Accounts and Records) Rules,1994
1993 SEBI(Appeal toCentral Government) Rules, 1993
1992 SEBI(Terms and Conditions of Service of Chairman and Members)
Rules, 1992
1986 Securities Contracts
(Reference to the Company Law Board)
Rules, 1986

20.  REGULATION& STRUCTUREOF
MUTUALFUNDIN INDIA
• INTRODUCTIONOFMFs:-
Amutual fund in India occurred in 1963, When
the Government of India launched Unit Trust of
India (UTI) under the direction of AkashBehl.
• Mutual funds are regulated by SEBIin India.
• Money markets MFs are also regulated by RBI
apart from being regulated by SEBI.

21.  STRUCTUREOFMFsinIndia
 Thestructure of Mutual Fundsin
India isathree-tier one.
 There are three distinct
entities involved in the
process –
 TheSponsor:-
(who creates aMutualFund),
 Trustees& theAsset
management company:-
(Which oversees thefund
management).

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AMC( AssetManagementCompany)
1.Ensuredayto daymanagement
of thefund.
2. Earnsinvestment managementfee for
managingfund & Capital of the AMCis
contributed bythesponsor.
TRUST
1.Keepsacheckon theAMC.
2. Ensurethat the fund ismanaged
in best interest ofinvestors.
SPONSOR
1.Createsthe Mutual fund &AMC
2.ApproachesSEBIto setup
mutual fund.

23. THANK
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