The Securities and Exchange Board of India (SEBI) was established in 1988 as the regulator of the securities market in India. SEBI has the primary objective of protecting investors and regulating the securities market. It has regulatory and developmental functions, including registering and regulating market intermediaries like stock brokers; prohibiting unfair trade practices; and promoting investor education. SEBI derives its powers from the SEBI Act of 1992 and its amendments, which allow it to regulate stock exchanges, collect information, and levy fees. SEBI is overseen by the central government and has various departments that carry out its regulatory and developmental roles.

1. FACULTY OF COMMERCE
WORKING OF SEBI
SUBMITTED TO:
SUBMITTED BY :
Saiyam Jain
142048

2. CONTENTS
• Origin & Growth
• Organization’s Structure
•Objectives of SEBI
•Functions of SEBI
•Powers of SEBI
•SEBI & Central Government
• Various Departments & their functions
• Current Board Members
• Few Cases
• Amendments

3. ORIGIN: GROWTH AND DEVELOPMENT
 Controller of Capital Issues was the regulatory authority before SEBI came
into existence; it derived authority from the Capital Issues (Control) Act,
1947.
 In April 12, 1988 the SEBI was constituted as the regulator of capital
markets in India under a resolution of the Government of India (as a non-statutory
body).
 It was later made a statutory body on April 4,1992 and it came to be
known as the SEBI Act,1992.
 The mission of SEBI is to make India as one of the best securities market in
the world and SEBI as one of the most respected regulator in the world.
 In the year of 1995, the SEBI was given additional statutory powers by the
Government of India through an amendment to the Securities and
Exchange Board of India Act 1992.
 It is the apex body to develop and regulate the stock market in India.
 It is known as the watchdog of Indian Capital Market.

4. Organization’s Structure
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 .
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Management of the Board

5. Objectives of SEBI
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.
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6. Functions of SEBI
The SEBI Act, 1992 has entrusted
with two functions, they are
Regulatory functions And
Developmental functions
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7. Regulatory Functions
Regulation of stock exchange and self regulatory
organizations.
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.
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8. Developmental Functions
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
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9. Powers of SEBI
Power to call periodical returns from recognized
stock exchanges.
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.
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10. Powers of SEBI continue..
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 make or amend bye-laws of recognized
stock exchanges.
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.
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11. SEBI & Central Govt.
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.
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12. Various departments under SEBI
S. No. Name of Dept.
1. MARKET INTERMEDIARIES REGULATION AND
SUPERVISION DEPARTMENT (MIRSD)
2. DERIVATIVES AND NEW PRODUCTS DEPARTMENT
(DNPD)
3. INVESTMENT MANAGEMENT DEPARTMENT (IMD)
4. INVESTIGATIONS DEPARTMENT (IVD)
5. LEGAL AFFAIRS DEPARTMENT (LAD)
6. OFFICE OF INVESTOR ASSISTANCE & EDUCATION
(OIAE)
7. DEPARTMENT OF ECONOMIC & POLICY ANALYSIS
(DEPA)
8. INFORMATION TECHNOLOGY DEPARTMENT (ITD)
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13. Various departments under SEBI
continue…
13
S. No. Name of Dept.
9. MARKET REGULATION DEPARTMENT (MRD)
10. CORPORATION FINANCE DEPARTMENT (CFD)
11. INTEGRATED SURVEILLANCE DEPARTMENT (ISD)
12. ENFORCEMENT OF DEPARTMENT (EFD)
13. ENQUIRIES & ADJUDICATION DEPARTMENT (EAD)
14. GENERAL SERVICES DEPARTMENT (GSD)
15. OFFICE OF THE CHAIRMEN (OCH)
16. THE REGIONAL OFFICES (RO’s)

14. Regulation by SEBI: Recent Cases
VEDANTA-CAIRN ISSUE
 SEBI has not yet cleared Vedanta group's open offer
for Cairn India, a mandatory requirement for
conclusion of London-based mining group's $9.6
billion acquisition to foray into oil sector.
 London-listed Vedanta had in August last year
agreed to buy up to 51 per cent stake in Cairn India
from Cairn Energy Plc. Following the acquisition, its
group firm Sesa Goa was to make an open offer for
buying an additional 20 per cent in the company that
owns India's largest on land oil field.
 But the company could not make the open offer
following an oil ministry intervention with SEBI.
The ministry said the deal was contingent upon
government approval, which is still under process.
 SEBI is holding back the approval for the open offer
as the government is yet to give its go ahead.
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15. Regulation by SEBI: Recent Cases
DECCAN-CHRONICLE HOLDINGS Ltd. ISSUE
 Sebi allowed the Deccan Chronicle Holdings Ltd to buy-back
3.45 crore shares or 14.17 per cent equity from the market at an
estimated cost of Rs 270 crore.
 This will be the second time the Deccan Chronicle would come
out with an offer to buy-back its shares, following which the
equity of the promoters in the company could go up to 73.83 per
cent from 63.37 per cent currently.
 SEBI, while exempting Deccan Chronicle from making the
mandatory public announcement before coming out with the buy-back
offer, has, however, asked the company "not of seek any
further exemption pursuant to any further buy-back".
 Referring to the general issue of companies buying back their own
shares, Sebi order said, "repeated buy-back offers by a company is
not something that Sebi, as a regulator, would like to encourage,
given the fact that it would be misused by entities to consolidate
their holding at the expense of the company.
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16. Current board members
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17. Current board members
continue..
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18. Current board members
continue..
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19. AMMENDMENTS
SEBI Act, 1992 was amended in the years 1995, 1999 and
2002 to meet the requirements of changing needs of the
securities market.
SEBI AMENDMENT BILL, 1995:-
 Mainly focussed on Foreign Institutional Investors (FII).
 Given additional statutory powers.
SEBI AMENDMENT BILL, 1999:-
 Included derivates & instruments of collective investment
schemes under the definition of securities.
 Enable RBI to regulate the transactions in government
securities & other related instruments as may be specified
by the Government.

20. SEBI AMENDMENT BILL, 2002:-
Gave more teeth to SEBI to punish market offenders
through Serious Fraud Office (SFO).
 Power to search & seize books, registers & documents of
intermediaries or any other persons associated with the
securities market.
Fine of 25 crores for insider trading.
Board strength increased from six to nine.

21. SEBI AMENDMENT BILL, 2013:-
 Passed by the Rajya Sabha on 5th September.
Widen the area for eligible candidates for the post of
Presiding Officer at the Securities Appellate Tribunal
(SAT).
 The Bill extends eligibility criteria for SAT Presiding
Officer’s role & includes sitting or retired Judges of a High
Court with a minimum service of 7 years.

22. REGIONAL OFFICES
1. New Delhi
2. Kolkata
3. Chennai
4. Ahmadabad
1. Jaipur
2. Bangalore
3. Guwahati
4. Bhubaneswar
5. Patna
6. Kochi
7. Chandigarh
SEBI Bhavan, Mumbai Headquarters (in Bandra Kurla
Complex)
Local Offices
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23. WWW.GOOGLE.COM
WWW.WIKIPEDIA.COM
WWW.SEBI.GOV.IN