The document discusses the powers and functions of the Securities and Exchange Board of India (SEBI). SEBI regulates the securities market in India and protects investors. It has powers to approve stock exchange bylaws, inspect books of accounts, compel certain companies to list on exchanges, and register brokers. SEBI has pushed for electronic and paperless trading through T+2 settlement and eliminating physical share certificates. It also set exit guidelines for regional exchanges that did not meet criteria for minimum net worth and trading volume.

1. 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 there with or incidental
there to".

8. Powers[edit]
For the discharge of its functions efficiently, SEBI has been vested with the following powers:
 to approve by−laws of Securities exchanges.
 to require the Securities exchange to amend their by−laws.
 inspect the books of accounts and call for periodical returns from recognized Securities exchanges.
 inspect the books of accounts of financial intermediaries.
 compel certain companies to list their shares in one or more Securities exchanges.
 registration broke[clarification needed]
SEBI has enjoyed success as a regulator by pushing systematic reforms aggressively and successively.
SEBI is credited for quick movement towards making the markets electronic and paperless by introducing
T+5 rolling cycle from July 2001 and T+3 in April 2002 and further to T+2 in April 2003. The rolling cycle of
T+2[8]
means, Settlement is done in 2 days after Trade date.[9]
SEBI has been active in setting up the

9. regulations as required under law. SEBI did away with physical certificates that were prone to postal delays,
theft and forgery, apart from making the settlement process slow and cumbersome by passing Depositories
Act, 1996.[10]
SEBI in its circular dated May 30, 2012 gave exit - guidelines for Securities exchanges. This was mainly due
to illiquid nature of trade on many of 20+ regional Securities exchanges. It had asked many of these
exchanges to either meet the required criteria or take a graceful exit. SEBI’s new norms for Securities
exchanges mandates that it should have minimum net-worth of Rs.100 crore and an annual trading of
Rs.1,000 crore. The Indian Securities market regulator SEBI had given the recognized Securities exchanges
two years to comply or exit the business.[20]