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PRESENTED TO:

PROF. V.K.PANDEY

BUSINESS ENVIRONMENT

PRESENTED BY:

ARPIT GOYAL

ROLL NO 2

MBA 1ST SEM (A)

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CONTENTS OF THE PRESENTATION

INTRODUCTION

ROLE OF SEBI

FUNCTIONS

OBJECTIVES

SEBI POWERS

SATYAM SCAM CASE

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INTRODUCTION

SEBI is the Regulator for the Securities Market in India.Originally set up by the Government of India in 1988, itacquired statutory form on April 12, 1992 with SEBI Act1992 being passed by the Indian Parliament. Chaired byChandrasekhar Bhaskar Bhave, SEBI is headquartered inthe popular business district of Bandra-Kurla complex inMumbai, and has Northern, Eastern, Southern andWestern regional offices in New Delhi, Kolkata, Chennai

and Ahmedabad.

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ROLE OF SEBI

To regulate the business in Stock Exchange & otherSecurities Market.

To register & regulate the working of Capital market

intermediaries.

To register & regulate the working of Mutual Funds.

To promote & regulate Self-regulatory Organization.

To prohibit fraudulent unfair trade practices in SecurityMarket.

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ROLE OF SEBI CONTD

To promote investors education & training to

intermediaries of Capital Market.

Prohibit insider training in Securities.

Regulate acquisition of shares & takeover of companies.

Performs others functions too.

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FUNCTIONS

The Board is responsible for the securing the interests ofinvestors in securities and to facilitate the growth of andto monitor the securities market in an appropriatemanner.

To monitor and control the performance of stockexchange and derivative markets.

Listing and monitoring the functioning of stock brokers,

sub brokers, share transfer agents, merchant bankers,

underwriters, portfolio managers, investment advisersand others associated with securities markets by anymeans.

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FUNCTIONS CONTD

Monitoring and Controlling the functioning of venture

capital funds and mutual funds.

Forbid unjust and dishonest trade practices in thesecurity markets and forbid insider trading in the security

market.

Undertake periodic audits of stock exchanges, mutualfunds, individuals and self regulatory organizations

associated with the security market.

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OBJECTIVES

To protect the interest of Investors.

To regulate the Securities Market & ensure fair practices.

To promote efficient services.

To facilitate an efficient mobilization & allocation of

resources.

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SEBI POWERS

Call periodical returns

Call for any information from Stock Exchanges.

Direct enquiries of the affairs of Stock Exchanges.

Power to compel listing of Securities by Public

Companies.

Power to control & regulate Stock Exchanges.

Power to grant registration to market intermediaries.

Power to levy fees or other charges.

Power to regulate FII etc.,

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SATYAM SCAM CASE

SEBI, the market regulator began questioning fraud hitSatyam Computers Ex-CEO Ramalinga Raju onWednesday, Feb 4 after it was granted permission by the

Supreme Court of India (SBI). SEBI grilled the Rajubrothers for the coming three days in connection with

the accounting fraud in Satyam.

Since the day Ramalinga Raju disclosed Rs 7,800 crore

scam (Jan 8) in Satyam, SEBI had been trying tointerrogate the Raju brothers. But Andhra CID arrestedRajus and he became inaccessible. The Market Regulatorthen approached a local court for permission tointerrogate Raju.

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SATYAM SCAM CASE CONTD

After the AP High Court repeatedly deferred the SEBIappeal, it moved to Apex court for 'urgent relief.

SEBI investigated if there was any insider trading angle

to the fraud since Raju had disclosed falsifying profits foryears,which in-turn helped the company to inflate shareprices.

SEBI PLAYED A CRITICAL ROLE IN THIS SCAM CASE

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