SECURITIES EXCHANGE BOARD OF INDIA

•SEBI (Securities 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 , originall set up by the

govt. of India in 1988, it acquired statutory form in 1992 with SEBI Act,1992 being

passed by the Indian Parliament.

INTRODUCTION

In 1988 the securities and exchange board of India was established by government of india

through an executive resolution and was subsequently upgraded as a fully autonomous body (a statutory body) in the year 1992 with

the passing of securities and exchange board of india act (SEBI act) on 30th janury 1992.

ESTABLISHMENT

•Shall be a body corporate with perpetual succession an common seal with power to acquire hold and dispose of Salient features of SEBI act

1992property.•Head Office will be in Mumbai and may establish

offices at other places in India.•Chairman and members of board will be appointed by

the central government.•Government can prescribe terms of offices and other

conditions of service of the board and chairman.•Primary duties of the board is to protect the interest

of the investors

SALIENT FEATURES OF SEBI ACT 1992

The board shall consists of the following members :-

• Chairman• Two members, one from amongst the officials of

the Central government dealing with finance and another from the administration of

Companies Act,1956.• One member from amongst the officials of the

Reserve Bank of India.• Five other members of whom at three shall be

the whole time members to be appointed by the Central Government.

STRUCTURE OF SEBI

• Power to make rules for controlling stock exchange

• To provide license to dealers and brokers

• To Stop fraud in Capital Market• To Control the Merge, Acquisition

and Takeover the companies• To audit the performance of stock

market• To make new rules on carry -

forward transactions

• To create relationship with ICAI

IMPORTANCE OF SEBI

• 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

POWERS OF SEBI

OBJECTIVES OF SEBI

The primary objective of SEBI is to promote healthy and orderly growth of the securities market and secure investor

protection.The objective of SEBI are as follows:-

• To protect the interest of investors, so that , there is a steady flow of savings into to the capital market.

• To regulate the securities market and ensure fair practices.

• To promote efficient services by brokers , merchant bankers and financial intermediaries, so that, they become

competitive and professional.

FUNCTIONS OF SEBI

The SEBI act 1992 has entrusted with two functions they are :

• Regulatory functions and

• Developmental functions

REGULATORY FUNCTIONS

• Regulation of stock exchanges and self regulatory organizations.

• Registration and regulation of stock brokers , sub-brokers , registrars of 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.• Prohibiting of insider trading.

DEVELOPMENTAL FUNCTIONS

• Promoting investors education.• Training of intermediaries.

• Conducting research and publishing information useful to all market participants.

• Promoting of fair practices.• Promotion of self regulatory organisations.

• Visibility

• Market support

• Investors confidence

• Increased demand for products and services

• Overall increase in profitability

LISTING

Stock exchange can de list companies for a number of reasons including :-

• Merger with another company

• Solvency problems

• Failure to comply with exchange rules

DELISTING