Securities and Exchange Board of India (Sebi)

PRESENTED TO: MISS HARPREET KAUR
PRESENTED BY: SIMRANJIT KAUR (M.COM)

ROLL NO. 2855
SEBI
➢ SECURITIES and
EXCHANGE BOARD
of INDIA is the apex
regulatory body for the
securities market in
India.
➢ It attracts foreign
investors and protect
Indian investors.
❑ To protect the interests of investors in
securities market.
❑ To promote the orderly growth of the

securities market.
❑ To regulate the securities market.
❑ To carry on the matters connected

therewith or incidental thereto.
▪ Protect the interest of investors.
▪ Registering and regulating the working of depositories , DP’s,
custodian of securities, venture capital funds including mutual
funds.
▪ Prohibiting fraudulent and unfair trade practices relating to
securities markets.
▪ Promoting investors education and training of intermediaries
of security markets.
▪ Levying fees or charges for carrying out purposes of this
section and other functions as may be prescribed.
POWER TO
ISSUE
DIRECTION AND
CONDUCT
INVESTIGATION
INSPECTION OF
PROHIBIT ISSUE
ANY BOOK OR
OF PROSPECTUS
DOCUMENT
TAKE MEASURES
IN INTEREST OF SAME POWERS
INVESTORS LIKE AS VESTED IN A
SUSPEND CIVIL COURT
,RESTRAIN Etc.
INVESTOR
PROTECTION
MECHANISM
Office of investor Investor

assistance and protection and
education education fund
1) Office of investor assistance
and education.
▪ Building the capacity of investors through education and
awareness to take investment decisions.
▪ Making available every relevant detail .
▪ Ensuring that transactions are safe.
▪ Facilitating Redressal of investor grievances .

2) Investor protection and
education fund
o AMOUNTS TO BE CREDITED TO FUNDS
✓ contribution as made by board to funds
✓ grants given to fund by central , state government
✓ interest or income received out of investment made from funds.
o UTILISATION OF FUNDS
✓ for protecting the interest of investors
✓ for educational activities including seminars, training ,research
✓ awareness programmes
✓ salary, allowances and other purposes as may be specified by the board
❖ TYPES OF COMPLAINTS HANDLED BY SEBI
• Complaints arising out of activities covered under SEBI act,1992
• Covered under securities and regulation act,1956
• Under depository act,1996
❖ COMPLAINT REDRESSAL OF SEBI DOES NOT DEAL-

• Complaint against unlisted ,wound up ,sick companies
• Cases that are under consideration by court of law etc.
• Complaints under other bodies like RBI ,IRDA etc.
ENTITIES AGAINST WHICH COMPLAINTS ARE HANDLED BY SEBI
Listed companies
Stock brokers
Stock exchange
Depository
Depository participants
Mutual fund portfolio managers
Registers to an issue
Credit rating agencies
Custodian of securities
Underwriters
Debenture trustees
Merchant bankers
Collective investment schemes
Bankers to an issue
• Various foreign investors are tapping investment
opportunities in Indian companies.
• In order to preserve image ,it is imperative to keep a
string check on various frauds and malpractices.
• SEBI has done quite well since its inception. SEBI as a
watchdog body has to be more cautious in capturing
wrongdoers.
• In present globalised economy, it is great challenge for
SEBI to check various malpractices so as to make
Indian capital market a favourable destination for
investment.
SEBI has issued
securities and
exchange board of
India
regulations,1992 for
intermediaries
MERCHANT BANKER
Registration
▪ Application for grant of certificate
▪ Furnishing of information,
clarification and personal
representation
▪ Consideration of application
▪ Grant of a certificate
▪ Payment of fees and the consequences

of failure to pay fees
❑ Merchant Banker does not to associate with any business other that
of merchant banking.
❑ Maintenance of books of accounts ,records etc .
❑ A copy of balance sheet , profit and loss account of each accounting
period.
❑ Copy of auditor report
❑ Submission of half yearly results
❑ A statement of financial position
❑ Acquisition of shares prohibited
❑ Information to the board
❑ Disclosure to the board
Code of conduct for merchant bankers
▪ make efforts to protect the interest of investors.
▪ maintain high standard of integrity , dignity .
▪ fulfill his obligations in ethical and professional manner.
▪ to ensure that investors are redressed in proper manner.
▪ adequate disclosures are made to investors.
▪ copy of prospectus , letter of offer made available to investor.
▪ no discrimination amongst its clients.
▪ reasonable steps to taken to resolve any conflict.
▪ confidential information of clients shall not divulge to anybody.
▪ He is responsible for acts or omissions of its employees.
MEANING—A BROKER is a member of recognized stock exchange Who is permitted
to do trade on screen based trading system of different Stock exchanges . he is enrolled
as member with concerned exchange. He arranges to buy and sell securities on behalf of
clients.
REGULATIONS
▪ application for grant of certificate shall made in form A
▪ then stock exchange shall forward to board but not later than thirty days.
▪ the applicant shall appear before board if required for personal representation.
▪ if board satisfied then grant certification. If board not satisfied then reject the
application after giving a reasonable opportunity of being heard.
▪ every applicant eligible for grant of certificate shall pay fees as specified.
▪ stock broker shall intimate to board the place where books of accounts are
maintained.
A. GENERAL B. DUTY TO THE INVESTOR C. STOCK BROKERS VIS-
À-VIS OTHER STOCK
BROKERS
✓ Integrity ✓ Execution of orders ✓ Conduct of dealings
✓ exercise of due ✓ issue of contract note ✓ protection of clients
skill and care interest
✓ breach of trust
✓ manipulation ✓ transactions with stock
✓ brokerage and commission brokers
✓ malpractices
✓ business of defaulting ✓ advertisement and
✓ compliance with clients publicity
statutory
requirements ✓ no conflict of interest ✓ inducement of clients
✓ investment advice ✓ misleading returns
✓ competence of stock broker
Custodian are clearing members but are not trading members. They settle trade on the behalf of
trading members, when particular trade is assigned to them for settlement . they are required to
confirm that they are going to settle the trade or not.
REGULATIONS
1) Make an application to board for grant of certificate in form A & accompanied with fee as
specified.
2) An application which is not complete shall be rejected.
3)Every certificate is valid for period of three years.
4) An applicant who is aggrieved by decision of board may, within 30 days , apply to board for
reconsideration of its decision.
5)Every custodian shall abide by code of conduct.
6)Every custodian should intimate to board where documents are maintained.
7) Custodian can appoint compliance officer, then he shall immediately report to board if any non
compliance observed.

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PRESENTED TO: MISS HARPREET KAUR

PRESENTED BY: SIMRANJIT KAUR (M.COM)

❑ To promote the orderly growth of the

❑ To regulate the securities market.

❑ To carry on the matters connected

Office of investor Investor

▪ Making available every relevant detail .

▪ Ensuring that transactions are safe.

▪ Facilitating Redressal of investor grievances .

❖ COMPLAINT REDRESSAL OF SEBI DOES NOT DEAL-

Mutual fund portfolio managers

Credit rating agencies

Collective investment schemes

▪ Payment of fees and the consequences

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