SEBI ACT 1992

Securities & Exchange Board of India, ACT 1992 Chaired by: C B Bhave

GROUP MEMBERS

NAME ROLL NO

ONKAR BIRJE 05

VINAYAK HALAPETI 13

PRITEE PINGALE 38

SAIPARESH WALAWALKAR 52

SOMESH ZUJAM 54

Contents Introduction Board Objectives Powers of SEBI Functions Role of SEBI SEBI guidelines Departments under SEBI SMAC Current plans Amendment bill Major Challenges faced by SEBI

INTRODUTIONThe Securities and Exchange Board of India was

established by the Government of India on 12th April 1988 as an interim administration body to promote orderly and healthy growth of the securities market and for investor protection.

It was functioned under the overall administrative control of the Ministry of Finance of the GOI.

The SEBI was given the statutory powers on 30th Jan 1992 through an Ordinance.

The Ordinance was later replaced by an Act of Parliament known as the Securities and Exchange Board of India Act 1992.

The Board

Mr. U. K. SinhaChairman, SEBI

Mr. Rajeev Kumar AgarwalWhole-Time Member, SEBI

Mr. Prashant SaranWhole-Time Member, SEBI

Mr. Manoj JoshiJoint Secretary,Department of Economic Affairs,Ministry of Finance

Mr. Naved MasoodSecretary,Ministry of Corporate Affairs

Mr. Prakash C. ChhotarayIRS (Retired Chairman of Income Tax Settlement Commission

Mr. R GandhiDeputy GovernorReserve Bank of India

Mr. S. RamanWhole-Time Member, SEBI

OBJECTIVESThe primary objective of SEBI is to promote healthy and

orderly growth -of the securities market and secure investor protection. The objectives of SEBI are as follows:

Regulation of Stock Exchange:

Protection to the Investors

Checking the insider Trading

Control over Brokers

POWERS OF SEBI

FUNCTIONS

Section 11 of the SEBI Act , there are mainly two types of functions. They are;

1.Regulatory Functions

2.Developmental Functions

1. Regulatory Functions

oRegulating stock exchanges and any other securities markets.

oRegistering and regulating intermediariesoPromoting and regulating self-regulatory organizationsoProhibiting insider tradingoRegulating substantial acquisition of share and take over

of companies. o Levying fees or other charges for carrying out the

purpose of this section.

2. Developmental Functions

• Promoting investor’s education

• Training of intermediaries

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

• Promotion of fair practices

• Promotion of self regulatory organizations

ROLE OF SEBI

To make rules and regulation

To educate brokers and investors

To encourage investor

Safeguard the investors interest

Development of stock and share markets

To stop all fraud and malpractices

Provide license to brokers

SEBI Guidelines • SEBI has brought out a number of guidelines separately,

from time to time, for primary market, secondary market, mutual funds, merchant bankers, foreign institutional investors, investor protection etc.

• 1. Guidelines for Primary Market.(a). New Company(b). New Company set-up by Existing Companies(c). Private and closely held companies(d). Existing Listed companies

• 2. Guidelines for Secondary Market:

Stock Exchange Brokers

• 3.Foreign Institutional Investors(FII)

Allowed to investRestriction on the volume

• 4.Guidelines to issue of Bonus Shares

Provision in the Articles of AssociationThe bonus is made out of free reservesNo bonus issue can be made within 12 months of any

public issue/rights issue.

5. Guidelines for Companies Act• Free pricing of issues.• Underwriting made mandatory.• Issue of shares at par.

6. Investor protection• New issues• Investor education• Stock invest

VARIOUS DEPARTMENTS UNDER SEBI

The Primary Market.

The Issue Management and Intermediaries Department.

The Secondary Market.

Institutional Investment Department (MF and FII),

Mergers and Acquisition.

Legal Department (all legal matters).

SECURITIES MARKET AWARENESS CAMPAIGN (SMAC)

1. Workshops

2. Advertisements

3. Educative Material

4. Website dedicated to investors Education

5. All India Radio

6. Cautionary Message on Television

RELATION WITH THE CENTRAL GOVERNMENT

The activities of SEBI are financed by grants from Central

Government, in addition to fees, charges etc. collected

by SEBI.

The fund called SEBI General Fund is set up, to which, all

fees, charges and grants are credited.

This fund is used to meet the expenses of the Board and

to pay salary of staff and members of the body

Current Plans of SEBI

To impose restrictions on willful defaulters

overhaul of private investment fund regulation

To reduce listing time period for firms

Risk profiling of listed firms intermediaries

To introduce mutual fund retirement plans with tax

benefits

AMENDMENT BILLSEBI AMENDMENT BILL, 2013:-

Passed by the Rajya Sabha on 5th September 2013.

Widen the area for eligible candidates for the post of Presiding Officer at the Securities Appellate Tribunal (SAT).

The Bill extends eligibility criteria for SAT Presiding Officer’s role & includes sitting or retired Judges of a High Court with a minimum service of 7 years.

Major Challenges faced by SEBI

Cross Border Trading

Issuers & Investors are expanding their horizons beyond

their home markets

Investors becoming much more demanding

Penetration of mutual fund in India

• REGIONAL OFFICES1. New Delhi2. Kolkata3. Chennai4. Ahmadabad

• LOCAL OFFICES1. Jaipur2. Bangalore3. Guwahati4. Bhubaneswar5. Patna6. Kochi7. Chandigarh

SEBI Bhavan, Mumbai Headquarters (in Bandra Kurla Complex)

REFERANCES• www.wikipedia.org• www.sebi.gov.in• Regulation of Securities Markets Book – Abdul Kadir Khan