SECURITIES EXCHANGE BOARD OF INDIA

o SEBI (Securities Exchange Board of India) was constituted on April 12, 1988 as a non-statutory body.o It is an apex body to develop and regulate the stock market in India.o 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 1992 property.

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.