SEBI was constituted in 1988 as a non-statutory body and was given statutory powers in 1992 through the SEBI Act. It acts as the regulator for the securities market in India and aims to protect investors and ensure the orderly and fair development of securities markets. SEBI has regulatory and developmental functions like registering market intermediaries, prohibiting unfair trade practices, promoting investor education and conducting research. It oversees stock exchanges, collects fees and charges, and has powers to regulate market participants and activities.

1. PRESENTED IN
Class of :-
Dr. Vijay Agarwal
Presented by:
SUMANT KR.
SINGH
MBA/15017/15

2.  SEBI(Securities and Exchange Board of India)
was constituted on April 12,1988 as a non-
statutory body
 It is an apex body to develop and regulate
the stock market in India
 SEBI is the regulator for the securities
market in India, originally set up by the
Government of India in 1988,it acquired
statutory form in 1992 with SEBI Act 1992
being passed by the Indian Parliament.

3.  The Preamble of the Securities and Exchange
Board of India describes the basic functions of the
Securities and Exchange Board of India as
"...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"

4.  Before SEBI came into existence issue of capital by
companies was regulated by Controller of Capital
Issue under Capital issue (Control ) Act in 1947.
 The act was repealed on 29th May, 1992.With the
abolition of CCI companies are not required to take
permission of govt. for issue of capital they just have
to get clearance from SEBI.

5. HEADQUARTER
 Plot No.C4-A,'G' Block, Bandra Kurla
Complex, Bandra (East), Mumbai 400051.

7.  Delhi.
 Chennai.
 Kolkata.
 Ahmadabad.

8. The Board shall consist of the following members, namely:-
a)a Chairman
b)Two members, One from amongst the officials of the Ministry of the
Central Government dealing with Finance and second from
administration of the Companies Act, 1956.
c)One member from amongst the officials of the Reserve Bank of India.
d)Five other members of whom at least three shall be the whole-time
members to be appointed by the central Government .

14. The primary objective of SEBI is to promote healthy and
orderly growth -of the securities market and secure
investor protection. The objectives of SEBI are as
follows:
 To protect the interest of investors, so that, there is a
steady flow of savings into the capital market.
.
 To regulate the securities market and ensure fair practices.
 To promote efficient services by brokers, merchant
bankers, and other intermediaries, so that, they become
competitive and professional.

15. The SEBI Act, 1992 has entrusted with two
functions, they are
◦ Regulatory functions And
◦ Developmental functions

16.  Regulation of stock exchange and self regulatory organizations.
Regulatory Functions.
 Registration and regulation of stock brokers, sub-brokers, Registrars to all
issues, merchant bankers, underwriters, portfolio managers etc.
 Registration and regulation of the working of collective investment
schemes including mutual funds.
 Prohibition of fraudulent and unfair trade practices relating to securities
market.
 Prohibition of insider trading.
 Regulating substantial acquisition of shares and takeover of companies.

17.  Promoting investor’s education.
 Training of intermediaries.
 Conducting research and publishing information useful to all
market participants..
 Promotion of fair practices.
 Promotion of self regulatory organizations

18.  Power to compel listing of securities by public
companies.
 Power to levy fees or other charges for carrying out the
purposes of regulation.
 Power to call information or explanation from recognized
stock exchanges or their members.
 Power to grant approval to bye-laws of recognized stock
exchanges.

19.  Power to control and regulate stock exchanges.
 Power to direct enquiries to be made in relation to
affairs of stock exchanges or their members.
 Power to grant registration to market intermediaries.
 Power to declare applicability of Section 17 of the
Securities Contract (Regulation) Act 1956, in any
State or area, to grant licenses to dealers in securities.

20.  The Central Government has power to issue directions to
SEBI Board, supersede the Board, if necessary and to call
for returns and reports as and when necessary. The Central
Government has also power to give any guideline or to
make regulations and rules for SEBI and its operations.
 The activities of SEBI are financed by grants from Central
Government, in addition to fees, charges etc. collected by
SEBI. The fund called SEBI General Fund is set up, to
which, all fees, charges and grants are credited. This fund is
used to meet the expenses of the Board and to pay salary of
staff and members of the body.

22. • Cross border trading
• Issuers and investors are expanding their horizons
beyond their home markets
• Investors becoming much more demanding