SEBI- 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 January, 1992

SEBI head
quartered in
popular
business
district of
bandra-kurla
complex in
Mumbai.

Amendments

Can undertake inspection of any books.

Power to regulate or prohibit issue of prospectus.

Power to prohibit manipulative and deceptive devices.

Penalties levied under the act have been enhanced.

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: -

1.
2.

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.
Regulating substantial acquisition of shares and takeovers
of the company.

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 organizations.

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 changes 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.
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

Structure of SEBI

1.
2.

3.

4.

The board shall consists of 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 of 1956.
One members from amongst the officials of the reserve
bank of India.
five other members of whom at least three shall be the
whole-time members to be appointed by the central
government.

THANKYOU