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CHANAKYA NATIONAL LAW UNIVERSITY, PATNA

SEBI: AS A REGULATOR OF MODERN SECURITIES MARKET

Subject- COMPANY LAW

Faculty -Submitted by:Mr. BRIJNATH KISHORE Name - Snigdha Semester -8th Roll No - 624

ACKNOWLEDGEMENT

It is my greatest pleasure to be able to present the project topic SEBI: AS A REGULATOR OF MODERN SECURITIES MARKET Of Banking Law. I found it very interesting to work on this project.

I would like to thank my teacher, Mr. BRIJNATH KISHORE, for providing me with such an interesting project topic and for his constant support and guidance.

I would also like to thank my librarian for helping me in gathering data for the project. Last, but not the least, I would heartily thank my family and friends for their unwavering support without which this work would not have been possible.

I hope that the readers will appreciate this project work.

Snigdha

RESEARCH METHODOLOGYMethod of ResearchThe researcher has adopted a purely doctrinal method of research. The researcher has made extensive use of the library at the Chanakya National Law University and also the internet sources.Aims and Objectives:The aim of the project is to present a detailed study of the SEBI: AS A REGULATOR OF MODERN SECURITES MARKET

Sources of Data:The following secondary sources of data have been used in the project-1. Books1. Websites

Method of Writing:The method of writing followed in the course of this research paper is primarily analytical.Mode of Citation:The researcher has followed a uniform mode of citation throughout the course of this research paper

Chapterisation:CHAPTERSPAGE NO1. INTRODUCTION51. SEBI :ORIGIN, ROLE, MISSION, ORGANIZATION STRUCTURE 61. POWERS AND FUCNCTIONS OF SEBI81. REGULATION OF SECURITIES MARKET 181. ROLE OF SEBI IN INDAIN CAPITAL MARKET 191. CONCLUSION 22BIBILOGRAPHY23

INTRODUCTION

The SEBI, that is, the Securities and the Exchange Board of India, is the national regulatory body for the securities market, set up under the securities and Exchange Board of India Act, 1992, to protect the interest of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith and incidental too.As per the SEBI act, 1992, the power and functions of the Board encompass the regulation of Stock Exchanges and other securities markets; registration and regulation of the working stock brokers, sub-brokers, bankers to an issue (a public offer of capital), trustees of trust deeds, registrars to an issues, merchant bankers, under writers, portfolio managers, investment advisors and such other intermediaries who may be associated with the stock market in any way; registration and regulations of mutual funds; promotion and regulation of self-regulatory organizations; prohibiting Fraudulent and unfair trade practices and insider trading in securities markets; regulating substantial acquisition of shares and takeover of companies; calling for information from, undertaking inspection, conducting inquiries and audits of stock exchanges, intermediaries and self-regulatory organizations of the securities market; performing such functions and exercising such powers as contained in the provisions of the Capital Issues(Control) Act,1947 and the Securities Contracts (Regulation) Act, 1956, levying various fees and other charges, conducting necessary research for above purposes and performing such other functions as may be prescribes from time to time.SEBI as the watchdog of the industry has an important and crucial role in the market in ensuring that the market participants perform their duties in accordance with the regulatory norms. The Stock Exchange as a responsible Self Regulatory Organization (SRO) functions to regulate the market and its prices as per the prevalent regulations. SEBI play complimentary roles to enhance the investor protection and the overall quality of the market.

PREAMBLEThe 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 therewith or incidental thereto.SEBI'S ORIGIN AND ITS CURRENT HIERARCHY:The idea of setting up a regulator was first proposed by former Prime Minister, Late Mr. Rajiv Gandhi who was also the Finance Minister in 1987. In his budget speech for 1987-88, Mr. Gandhi had said For a healthy growth of capital markets, investors rights must be fully protected. [footnoteRef:1]Trading malpractices must be prevented. Government has decided to set up a separate board for the regulation and orderly functioning of stock exchanges and the securities industry. Thus, a notification was issued and SEBI was constituted on 12thApril 1988 as an interim administrative body under the Finance Ministry. However, it was four years later; on 4thApril 1992 that a notification awarding statutory powers to SEBI was finally issued. [1: http://www.newsonair.com/SEBI-A-CREDBLE-AND-EFFECTIVE-REGULATOR.asp]

SEBI is aquasi-legislative,quasi-judicialand quasi-executive body. It can draft regulations, conduct inquiries, pass rulings and impose penalties. [footnoteRef:2]All decisions taken by SEBI are collectively taken by its Board that consists of a Chairman and eight other members. The current Chairman of SEBI is Mr.Upendra Kumar Sinha. Moreover, SEBI appoints various committees, whenever required to look into the pressing issues of that time. Further, a Securities Appellate Tribunal. [2: http://www.icmrindia.org/casestudies/catalogue/Finance/FINC036.htm]

ROLE OF SEBITo assure it aims to provide a market a place in which they can confidently look forward to raising finance they need in a fair and efficient manner. SEBI protects investors rights and interest through adequate accurate and authentic information and disclosure of information on a continuous basis. For the intermediaries on a continuous basis. For the intermediaries it offers a competitive, professionalized and expanding market with adequate and efficient infrastructure so as to render better service to investors and issuers.MISSION OF SEBISecurities & Exchange Board of India (SEBI) formed under the SEBI Act, 1992 with the prime objective of : Protecting the interests of investors in securities, Promoting the development of, and Regulating, the securities market and for matters connected therewith or incidental thereto. Focus being the greater investor protection, SEBI has become a vigilant watchdogORGANIZATION STRUCTURE

The activities of SEBI has been divided into five operational departments. Each department is headed by an Executive Director. [footnoteRef:3]Apart from its head office in Mumbai, SEBI has regional offices in Kolkata, Delhi to attend investor complaints and liaise with the issuers, intermediaries and stock exchanges in the concerned region. SEBI has formed two advisory committees. (a) Primary market advisory committee (b) Secondary market advisory committee. These committees are non statutory in nature in SEBI is not bound by the advice of these committees. These committees are a part of SEBI is constant endeavour to obtain feedback from the market players on issues relating to the regulations and development of the market. [3: http://corporatelawreporter.com/2013/10/30/role-sebi-capital-market-developments-challenges-1/]

POWERS AND FUNCTIONS OF BOARD:Functions of Board. 11. (1) Subject to the provisions of this Act, it shall be the duty of the Board to protect the interests of investors in securities and to promote the development of, and to regulate the securities market, by such measures as it thinks fit. (2) Without prejudice to the generality of the foregoing provisions, the measures referred to therein may provide for - (a) regulating the business in stock exchanges and any other securities markets; (b)[footnoteRef:4] registering and regulating the working of stock brokers, sub-brokers, share transfer agents, bankers to an issue, trustees of trust deeds, registrars to an issue, merchant bankers, underwriters, portfolio managers, investment advisers and such other intermediaries who may be associated with securities markets in any manner; [4: http://www.sebi.gov.in/cms/sebi_data/about_us/act15ac.html#ch4]

[(ba) registering and regulating the working of the depositories,[participants,] custodians of securities, foreign institutional investors, credit rating agencies and such other intermediaries as the Board may, by notification, specify in this behalf;] (c) registering and regulating the working of[venture capital funds and collective investment schemes],including mutual funds; (d) promoting and regulating self-regulatory organisations; (e) prohibiting fraudulent and unfair trade practices relating to securities markets; (f) promoting investors' education and training of intermediaries of securities markets; (g) prohibiting insider trading in securities; (h) regulating substantial acquisition of shares and take-over of companies; (i) calling for information from, undertaking inspection, conducting inquiries and audits of the [ stock exchanges, mutual funds, other persons associated with the securities market] intermediaries and self- regulatory organizations in the securities market; [(ia)[footnoteRef:5] calling for information and record from any bank or any other authority or board or corporation established or constituted by or under any Central, State or Provincial Act in respect of any transaction in securities which is under investigation or inquiry by the Board;] [5: Indian Journal of Research, Paripex, Volum:3, Issue:3, March 2014.]

(j) performing such functions and exercising such powers under the provisions of [...]the Securities Contracts (Regulation) Act, 1956(42 of 1956), as may be delegated to it by the Central Government; (k) levying fees or other charges for carrying out the purposes of this section; (l) conducting research for the above purposes; (la) calling from or furnishing to any such agencies, as may be specified by the Board, such information as may be considered necessary by it for the efficient discharge of its functions;] (m) performing such other functions as may be prescribed. (2A) Without prejudice to the provisions contained in sub-section (2), the Board may take measures to undertake inspection of any book, or register, or other document or record of any listed public company or a public company (not being intermediaries referred to in section 12) which intends to get its securities listed on any recognised stock exchange where the Board has reasonable grounds to believe that such company has been indulging in insider trading or fraudulent and unfair trade practices relating to securities market.] [(3) Notwithstanding anything contained in any other law for the time being in force while exercising the powers under [clause (i) or clause (ia) of sub-section (2) or sub-section (2A)], the Board shall have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908),while trying a suit, in respect of the following matters, namely : (i) the discovery and production of books of account and other documents, at such place and such time as may be specified by the Board; (ii) summoning and enforcing the attendance of persons and examining them on oath; (iii) inspection of any books, registers and other documents of any person referred to in section 12, at any place;] [(iv) inspection of any book, or register, or other document or record of the company referred to in sub-section (2A); (v) issuing commissions for the examination of witnesses or documents.] [(4) [footnoteRef:6]Without prejudice to the provisions contained in sub-sections (1), (2), (2A) and (3) and section 11B, the Board may, by an order, for reasons to be recorded in writing, in the interests of investors or securities market, take any of the following measures, either pending investigation or inquiry or on completion of such investigation or inquiry, namely:- [6: http://www.icmrindia.org/casestudies/catalogue/Finance/FINC036.htm]

(a) suspend the trading of any security in a recognized stock exchange; (b) restrain persons from accessing the securities market and prohibit any person associated with securities market to buy, sell or deal in securities; (c) suspend any office-bearer of any stock exchange or self- regulatory organization from holding such position; (d)impound and retain the proceeds or securities in respect of any transaction which is under investigation; (e)attach, after passing of an order on an application made for approval by the [footnoteRef:7]Judicial Magistrate of the first class having jurisdiction, for a period not exceeding one month, one or more bank account or accounts of any intermediary or any person associated with the securities market in any manner involved in violation of any of the provisions of this Act, or the rules or the regulations made thereunder: [7: http://www.sebi.gov.in/sebiweb/]

Provided that only the bank account or accounts or any transaction entered therein, so far as it relates to the proceeds actually involved in violation of any of the provisions of this Act, or the rules or the regulations made thereunder shall be allowed to be attached; (f)direct any intermediary or any person associated with the securities market in any manner not to dispose of or alienate an asset forming part of any transaction which is under investigation: Provided that the Board may, without prejudice to the provisions contained in sub-section (2) or sub-section (2A), take any of the measures specified in clause (d) or clause (e) or clause (f), in respect of any listed public company or a public company (not being intermediaries referred to in section 12) which intends to get its securities listed on any recognized stock exchange where the Board has reasonable grounds to believe that such company has been indulging in insider trading or fraudulent and unfair trade practices relating to securities market: Provided further that the Board shall, either before or after passing such orders, give an opportunity of hearing to such intermediaries or persons concerned.][Board to regulate or prohibit issue of prospectus, offer document or advertisement soliciting money for issue of securities.11A (1) Without prejudice to the provisions of the Companies Act, 1956(1 of 1956), the Board may, for the protection of investors, - (a) specify, by regulations (i) the matters relating to issue of capital, transfer of securities and other matters incidental thereto; and (ii) the manner in which such matters shall be disclosed by the companies; (b) by general or special orders (i) prohibit any company from issuing prospectus, any offer document, or advertisement soliciting money from the public for the issue of securities; (ii)specify the conditions subject to which the prospectus, such offer document or advertisement, if not prohibited, may be issued. (2) [footnoteRef:8]Without prejudice to the provisions of section 21 of the Securities Contracts (Regulation) Act, 1956(42 of 1956), the Board may specify the requirements for listing and transfer of securities and other matters incidental thereto."] [8: http://www.iimb.ernet.in/research/sites/default/files/WP%20No.%20309.pdf]

[Collective Investment Scheme.11AA (1) Any scheme or arrangement which satisfies the conditions referred to in sub-section (2) shall be a collective investment scheme. (2) Any scheme or arrangement made or offered by any company under which,--- (i) the contributions, or payments made by the investors, by whatever name called, are pooled and utilized solely for the purposes of the scheme or arrangement; (ii) the contributions or payments are made to such scheme or arrangement by the investors with a view to receive profits, income, produce or property, whether movable or immovable from such scheme or arrangement; (iii) the property, contribution or investment forming part of scheme or arrangement, whether identifiable or not, is managed on behalf of the investors; (iv) the investors do not have day to day control over the management and operation of the scheme or arrangement. (3) Notwithstanding anything contained in sub-section (2), any scheme or arrangement (i) made or offered by a co-operative society registered under the co-operative societies Act,1912(2 of 1912) or a society being a society registered or deemed to be registered under any law relating to cooperative societies for the time being in force in any state; (ii)under which deposits are accepted by non-banking financial companies as defined in clause (f) of section 45-I of the Reserve Bank of India Act, 1934(2 of 1934); (iii)being a contract of insurance to which the Insurance Act,1938(4 of 1938), applies; (iv)providing for any scheme, Pension Scheme or the Insurance Scheme framed under the Employees Provident Fund and Miscellaneous Provisions Act, 1952(19 of 1952); (v)under which deposits are accepted under section 58A of the Companies Act, 1956(1 of 1956); (vi)under which deposits are accepted by a company declared as a Nidhi or a mutual benefit society under section 620A of the Companies Act, 1956(1 of 1956); (vii)falling within the meaning of Chit business as defined in clause (d) of section 2 of the Chit Fund Act, 1982(40 of 1982); (viii)under which contributions made are in the nature of subscription to a mutual fund; shall not be a collective investment scheme.][Power to issue directions.11B. [footnoteRef:9]Save as otherwise provided in section 11, if after making or causing to be made an enquiry, the Board is satisfied that it is necessary,- [9: http://www.svtuition.org/2010/05/role-of-sebi-in-indian-capital-market.html]

(i) in the interest of investors, or orderly development of securities market; or (ii) to prevent the affairs of any intermediary or other persons referred to in section 12 being conducted in a manner detrimental to the interest of investors or securities market; or (iii) to secure the proper management of any such intermediary or person, it may issue such directions,- (a) to any person or class of persons referred to in section 12, or associated with the securities market; or (b) to any company in respect of matters specified in section 11A, as may be appropriate in the interests of investors in securities and the securities market] [Investigation.11C. (1) Where the Board has reasonable ground to believe that (a)the transactions in securities are being dealt with in a manner detrimental to the investors or the securities market; or (b)any intermediary or any person associated with the securities market has violated any of the provisions of this Act or the rules or the regulations made or directions issued by the Board thereunder, It may, at any time by order in writing, direct any person (hereafter in this section referred to as the Investigating Authority) specified in the order to investigate the affairs of such intermediary or persons associated with the securities market and to report thereon to the Board. (2) Without prejudice to the provisions of sections 235 to 241 of the Companies Act, 1956(1 of 1956), it shall be the duty of every manager, managing director, officer and other employee of the company and every intermediary referred to in section 12 or every person associated with the securities market to preserve and to produce to the Investigating Authority or any person authorised by it in this behalf, all the books, registers, other documents and record of, or relating to, the company or, as the case may be, of or relating to, the intermediary or such person, which are in their custody or power. (3) [footnoteRef:10]The Investigating Authority may require any intermediary or any person associated with securities market in any manner to furnish such information to, or produce such books, or registers, or other documents, or record before it or any person authorized by it in this behalf as it may consider necessary if the furnishing of such information or the production of such books, or registers, or other documents, or record is relevant or necessary for the purposes of its investigation. [10: http://www.business-standard.com/article/news-ians/sebi-india-s-capital-market-regulator-is-25-113052300584_1.html]

(4) The Investigating Authority may keep in its custody any books, registers, other documents and record produced under sub-section (2) or sub-section (3) for six months and thereafter shall return the same to any intermediary or any person associated with securities market by whom or on whose behalf the books, registers, other documents and record are produced: Provided that the Investigating Authority may call for any book, register, other document and record if they are needed again: Provided further that if the person on whose behalf the books, registers, other documents and record are produced requires certified copies of the books, registers, other documents and record produced before the Investigating Authority, it shall give certified copies of such books, registers, other documents and record to such person or on whose behalf the books, registers, other documents and record were produced. (5) Any person, directed to make an investigation under sub-section (1),may examine on oath, any manager, managing director, officer and other employee of any intermediary or any person associated with securities market in any manner, in relation to the affairs of his business and may administer an oath accordingly and for that purpose may require any of those persons to appear before it personally. (6) If any person fails without reasonable cause or refuses (a) to produce to the Investigating Authority or any person authorised by it in this behalf any book, register, other document and record which it is his duty under sub-section (2) or sub-section (3) to produce; or (b) to furnish any information which is his duty under sub-section (3) to furnish; or (c) [footnoteRef:11]to appear before the Investigating Authority personally when required to do so under sub-section (5) or to answer any question which is put to him by the Investigating Authority in pursuance of that sub-section; or [11: http://www.allbankingsolutions.com/Banking-Tutor/Regulatory-Bodies-in-India-RBI-SEBI-IRDA.shtml]

(d) to sign the notes of any examination referred to in sub-section (7), he shall be punishable with imprisonment for a term which may extend to one year, or with fine, which may extend to one crore rupees, or with both, and also with a further fine which may extend to five lakh rupees for every day after the first during which the failure or refusal continues. (7) Notes of any examination under sub-section (5) shall be taken down in writing and shall be read over to, or by, and signed by, the person examined, and may thereafter be used in evidence against him. (8) Where in the course of investigation, the Investigating Authority has reasonable ground to believe that the books, registers, other documents and record of, or relating to, any intermediary or any person associated with securities market in any manner, may be destroyed, mutilated, altered, falsified or secreted, the Investigating Authority may make an application to the Judicial Magistrate of the first class having jurisdiction for an order for the seizure of such books, registers, other documents and record. (9) After considering the application and hearing the Investigating Authority, if necessary, the Magistrate may, by order, authorise the Investigating Authority (a) to enter, with such assistance, as may be required, the place or places where such books, registers, other documents and record are kept; (b) to search that place or those places in the manner specified in the order; and (c ) to seize books, registers, other documents and record, it considers necessary for the purposes of the investigation: Provided that the Magistrate shall not authorize seizure of books, registers, other documents and record, of any listed public company or a public company (not being the intermediaries specified under section 12) which intends to get its securities listed on any recognised stock exchange unless such company indulges in insider trading or market manipulation. (10) The Investigating Authority shall keep in its custody the books, registers, other documents and record seized under this section for such period not later than the conclusion of the investigation as it considers necessary and thereafter shall return the same to the company or the other body corporate, or, as the case may be, to the managing director or the manager or any other person, from whose custody or power they were seized and inform the Magistrate of such return; Provided that the Investigating Authority may, before returning such books, registers, other documents and record as aforesaid, place identification marks on them or any part thereof. (11) Save as otherwise provided in this section, every search or seizure made under this section shall be carried out in accordance with the provisions of the Code of Criminal Procedure, 1973(2 of 1974), relating to searches or seizures made under that Code. Cease and desist proceedings. 11D. If the Board finds, after causing an inquiry to be made, that any person has violated, or is likely to violate, any provisions of this Act, or any rules or regulations made thereunder, it may pass an order requiring such person to cease and desist from committing or causing such violation: Provided that the Board shall not pass such order in respect of any listed public company or a public company (other than the intermediaries specified under section 12) which intends to get its securities listed on any recognized stock exchange unless the Board has reasonable grounds to believe that such company has indulged in insider trading or market manipulation.]

REGULATION OF SECURITY MARKETThe security market is regulated by various agencies, such as the Department of Economics Affairs (DAE), the Department of Company Affairs (DC), the Reserve Bank of India (RBI) and the SEBI. The Activities of these agencies are coordinated by a high level committee on capital and financial markets.

THE SECURITY AND EXCHANGE BOARD OF INDIA With the declaration of the amendment box up in 19913. The dimension of business in both the primary and secondary sector has been increased enormously till now. An harmony with supplies of security exchange board of India and exchange Act,1992. In the same year on April 12th 1992 the security exchange board of India was well known. SEBIs efforts are to create effective surveillance mechanism for the securities autonomy on the part of all players the market, who should discipline themselves and observes and observe the rules of the game. This would be possible, if the intermediaries set themselves up as effective self-regulatory bodies. Self-regulation is therefore the cornerstone of the regulatory framework advocated by SEBI, which like management by exception would result in regulation by exception. However, self regulation can work only if there is an effective regulatory body overseeing activities of self-regulatory organisations. beginning to end the securities market a skeleton, which would prop up efficiency of the market so that it could make available the compulsory services to trade and business and classified investors in the most efficient economic way, conjure up rivalry and give confidence modernization, be approachable to worldwide improvement a skeleton which is bendable and charge successful so that it has simplicity to conduct and not limit the changes, and at last encourage self - belief on the part of the investors and other users of the bazaar by ensuring the bazaar place is, and is also seen to be, clean to do business in a fair, see through and well-organized behaviour.

FINDING ROLE OF SEBI IN INDIAN CAPITAL MARKETSEBIs efforts are to create effective surveillancemechanism for the securities market, and encourage responsible and accountable autonomy on the part of all players the market, who should discipline themselves and observes and observe the rules of the game. This would be possible, if the intermediaries set themselves up as effective self-regulatory bodies. Self-regulation is therefore the [footnoteRef:12]cornerstone of the regulatory framework advocated by SEBI, which like management by exception would result in regulation by exception. However, self regulation can work only if there is an effective regulatory body overseeing activities of self-regulatory organisations. SEBI endeavours to provide a controller structure which would simplification an effective mobilisation and allotment of wealth through the securities bazaar a structure, which would encourage effective of the bazaar so that it could manage the essential services to business and commerce and personal investors in the most effective economic route jog competition and promote innovation, be responsive to international growth a structure which is flexible and cost effective so that it has clarity to guide and not cramp the changes, and finally in breath trust on the part of the investors and other users of the bazaar by ensuring the bazaar place is, and is also seen to be, clean to do trade in a fair, transparent and efficient manner. [12: http://www.moneylife.in/article/does-sebi-deserve-to-be-the-strongest-regulator-in-the-world/33940.html]

Role of SEBI in regulating Indian Capital Market

1.Power to make rules for controlling stock exchange :

SEBI has power to make new rules for controlling stock exchange in India. For example, SEBI fixed the time of trading9 AM and 5 PM in stock market.

2. To provide license to dealers and brokers :

SEBI has power to provide license to dealers and brokers of capital market. If SEBI sees that any financial product is of capital nature, then SEBI can also control to that product and its dealers. One of main example is ULIPs case. SEBI said, " It is just like mutual funds and all banks and financial and insurance companies who want to issue it, must take permission from SEBI."

3. To Stop fraud in Capital Market :

SEBI has many powers for stopping fraud in capital marketIt can ban on the trading of those brokers who are involved in fraudulent and unfair trade practices relating to stock market. It can impose the penalties on capital market intermediaries if they involve in insider trading.

4. To Control the Merge, Acquisition and Takeover the companies :

Many big companies in India want to create monopoly in capital market. So, these companies buy all other companies or deal of merging. SEBI sees whether this merge or acquisition is for development of business or to harm capital market.

5. To audit the performance of stock market :

SEBI uses his powers to audit the performance of different Indian stock exchange for bringing transparency in the working of stock exchanges.

6. To make new rules on carry - forward transactions :

Share trading transactions carry forward can not exceed 25% of broker's total transactions.90 day limit for carry forward.

7. To create relationship with ICAI :

ICAI isthe authority for making new auditors of companies. SEBI creates good relationship with ICAI for bringing more transparency in the auditing work of company accounts because audited financial statements are mirror to see the real face of company and after this investors can decide to invest or not to invest. Moreover, investors of India can easily trust on audited financial reports. After Satyam Scam, SEBI is investigating with ICAI, whether CAs are doing their duty by ethical way or not.

8. Introduction of derivative contracts on Volatility Index :

For reducing the risk of investors, SEBI has now been decided to permit Stock Exchanges to introduce derivative contracts on Volatility Index, subject to the condition that;

a. The underlying Volatility Index has a track record of at least one year.

b. The Exchange has in place the appropriate risk management framework for such derivative contracts.

9. To Require report of Portfolio Management Activities :

SEBI has also power torequire report of portfolio management to check the capital market performance. Recently, SEBI sent the letter to allRegistered Portfolio Managers of India for demanding report.

10. To educate the investors :

Time to time, SEBI arranges scheduled workshops to educate the investors. On 22 may 2010 SEBI imposed workshop. If you are investor, you can get education through SEBI leaders by getting update information on this page.

CONCLUSION:For a growing and dynamic economy like India, securities markets play an important role in not just attracting domestic and foreign investment but also mirror the state of affairs in our country. In order to present the Indian dream most favourably among investors, it is important that our securities markets have a strong and non-manipulative infrastructure and to ensure this, India has its securities market regulator, the Securities and Exchange Board of India SEBI.The SEBI is a regulatory body which is twenty one years old and the capital market system is more then 100 years old. There should be cross border cooperation among all sorts regulators and between regulators and profession. Security Exchange Board Of India has enjoyed success as a regulator by pushing systematic reforms aggressively and respectively. Security Exchange Board Of India did out with corporeal example that were prone to postal delays, thievery and product, separate from making the solution action slow and carking by passing Depositories Act, 1996. Security Exchange Board Of India has also been instrumental in taking fast and useful steps in light of the universal meltdown and the Satyam fiasco In October 2011, it increased the region and stock of disclosures to be made by Indian corporate promoters. In light of the universal meltdown, it liberalised the takeover code to straighten investments by removing regulatory structures. In one such move, Security Exchange Board Of India has increased the application limit for retail investors to Rs 2 lakh, from Rs 1 lakh at present.With changing times and while facing newer challenges, SEBI has always taken responsibility for everything that is right or wrong in Indias capital markets. Even now, when SEBI finds itself surrounded by the din of chit funds siphoning off crores of rupees from gullible investors and a need for tightening insider trading norms; the Indian government has happily obliged to SEBIs demand for more powers. Accordingly the government has promulgated Securities Laws (Amendment) Second Ordinance, 2013 that would amend the SEBI Act, the Securities Contracts (Regulation) Act and the Depositories Act. With these amendments, SEBI will be able to regulate any money pooling scheme worthRs.100 crore or more and attach assets in cases of non-compliance. The SEBI Chairman would have the authority to order "search and seizure operations". The amended law would also allow SEBI to seek information, such as telephone call data records, from any persons or entities in respect to any securities transaction being investigated by it. The law would further allow setting up of special courts to speed up SEBI related casesBIBILOGRAPHY:BOOKS AND JOURNALS REFERRED:

Singh Rajiv Kumar(2012), Role Of Securities & Exchange Board Of India (Sebi) In RegulatingmutualFundsInternational Journal Of Trade And Commerce, January-June 2012, Volume1,No. 1.

Pasha ShaikAbudlMajeeb, Krishna R.Vamsi, Kiran V. HemanthaGopi (2012)A study On Role Of Sebi In Indian Capital Market: An Empirical Analysis,International Journal Of Multidisciplinary Research, Vol.2 Issue 3.

Indian Journal of Research, Paripex, Volum:3, Issue:3, March 2014.

WEBSITES REFFERED: http://www.newsonair.com/SEBI-A-CREDBLE-AND-EFFECTIVE-REGULATOR.asp http://corporatelawreporter.com/2013/10/30/role-sebi-capital-market-developments-challenges-1/ http://www.sebi.gov.in/cms/sebi_data/about_us/act15ac.html#ch4 http://www.academia.edu/4648251/ROLE_OF_SEBI_IN_INDIAN_CAPITAL_MARKET http://www.svtuition.org/2010/05/role-of-sebi-in-indian-capital-market.html