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    Be Sebi

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    Shilpi Singh

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    Be Sebi

    Uploaded by

    Shilpi Singh
    3 views10 pages

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    BE_SEBI

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    3 views10 pages

    Be Sebi

    Uploaded by

    Shilpi Singh

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    © All Rights Reserved
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    of 10

    SECURITIES AND EXCHANGE

    BOARD OF INDIA (SEBI)


    ESTABLISHMENT

    • In 1988 the Securities and Exchange Board of India (SEBI) was established by the
    Government of India through an executive resolution.
    • Upgraded as Fully autonomous body in 1992 with the passing of SEBI act on 30 Jan 1992.
    PREAMBLE
    “……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”
    OBJECTIVES OF SEBI

    • Protection to the investors


    • Prevention of Malpractices
    • Fair and proper functioning
    ORGANIZATION’S STRUCTURE

    The board shall consists of following members namely-


    • A chairman
    • Two members, one from amongst the officials of the Ministry of
    the Central Government dealing with Finance and second from
    administration of the Companies Act, 1956.
    • One member from the officials of RBI
    • Five other members of whom at least three shall be whole time
    members to be appointed by Central Government.
    DEPARTMENTS UNDER SEBI

    Primary Secondary
    market market
    Department department

    Issue Institutional
    management investment
    Department department
    FUNCTIONS OF SEBI

    We can classify the functions of SEBI in three categories-


    1.Protective Functions
    • Checks Price Rigging
    • Prohibits Insider trading
    • Prohibits fraudulent and Unfair Trade Practices.
     Issue guidelines
    2.Developmental Functions
    • Promotes training of intermediaries of the securities market.
    • Tries to promote activities of stock exchange by adopting flexible and adoptable approach in
    following manner –
    a) permitted internet trading through registered stock brokers
    b) Made underwriting optional to reduce cost of issue
    c)Even IPO of primary market is permitted through stock exchange.
    3.Regulatory Functions
    • Framed rules and regulations and a code of conduct to regulate the intermediaries
    • Registers and regulates the working of mutual funds etc.
    • Regulates takeover of the companies.
    • Conducts inquires and audit of stock exchanges.
    • Intermediaries have been brought under the regulatory purview and private placement has
    been made more restrictive.
    4. Other miscellaneous functions
    POWERS OF SEBI

    • The power to regulate and approve laws in the stock exchanges.


    • It has the powers to access the books of records and accounts of companies
    • It can also conduct hearings and pass judgments.
    • The power to get companies listed and de-listed from any stock exchange in the country.
    • The power to regulate insider trading and announce penalties.
    • It can also make companies list their shares in more than one stock exchange.
    • Power for investor protection.
    • The power to regulate the registration of brokers and other middlemen.
    MUTUAL FUND REGULATIONS BY
    SEBI:

    SEBI has categorised mutual funds in the five broad categories:


    1. On asset class basis: equity funds, debt funds and hybrid funds
    2. On investment goals basis: growth funds, income funds, liquid funds and tax savings funds
    3. On risk basis: very low risk , low risk, medium risk and high risks.

    • SEBI has reclassified large, mid and small-cap companies as follows:


    1. Large-cap company
    2. Mid-cap company
    3. Small-cap company

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