SEBI functions and role and there objectives

1. Made by :
Abhinav singh

2. Why do we need a regulatory body for
Investor protection in India?
• India is an ` Informationally ' weak market
• Boosting capital market demands restoring
the confidence of investors who have been
beaten down by repeated scams
• Progressively softening interest rates and an
under performing economy have eroded
investment options, and require enhanced
investing skills.

3. SECURITIES AND EXCHANGE BOARD OF
INDIA
.
 The establishment of the securities and exchange board of
india(SEBI) was a land mark government measure to
monitor and regulate capital market activities and to
promote healhty development of the market.
 SEBI was set up as a non-statutory body. Securities and
Exchange Board of India (SEBI) is a autonomous body
created by the Government of India in 1988 and given
statutory form in 1992 with the SEBI Act 1992
 It took almost four years for the government to bring about
a separate legislation in the name of securities and
exchange board of India act, 1992 conferring statutory
powers.

4. SEBI ACT 1992
 The Securities and Exchange Board of India Act,
4th April, 1992.
 An Act to provide for the establishment of a Board
to protect the interests of Investors in securities and
to promote the development of, and to regulate,
The SEBI Act was amended to meet the
requirements of changing needs of the securities
market and responding to the development.
 The mission of SEBI is to make India as one of the
best securities market of the world and SEBI as one
of the most respected regulator in the world.

5. Need for regulation by SEBI

6. SEBI Management Board Members
• The board consists of:
– A Chairman
– Two members from amongst the officials of the
ministry of central government dealing with
finance and administration of the Companies Act,
1956.
– One member amongst the officials of the Reserve
Bank
– Five other members, of whom at least three to be
the whole time members, appointed by the central
government

7. VARIOUS DEPARTMENTS UNDER
SEBI
• The Primary market
• The Issue management and intermediaries
department
• The Secondary Market
• Institutional investment(MF and FII), mergers
and acquisition
• Legal department looks after all legal matters
• Investigation department carries out
inspection and investigation

8. OBJECTIVES OF SEBI
1. Registering and regulating the working of stock
brokers, sub-brokers, share transfer agents ,
underwriters……….who may be associated
securities market in any manner.
2. Registering and regulating the working of
collective investment scheme including mutual
funds.
3. Prohibiting insider trading in securities.
4. Regulating substantial acquisition of shares and
takeovers of companies.

9. Contd……
• 5. Calling for information from ,undertaking
inspection ,conducting inquiries and audits of
stock exchanges and intermediaries and self
regulatory organizations in the securities market.
• 6. Performing such function and exercising such
powers under the provisions of the capital issues
(control) act 1947 and SCRA 1956 ,as may be
delegated to it by the central government.
• 7. Performing such other functions as may be
prescribed.

10. POWERS OF SEBI
 Regulating the business in stock exchanges and any other
securities markets
 Registering and regulating the working of stock brokers, sub–
brokers etc.
 Promoting and regulating self-regulatory organizations
 Prohibiting fraudulent and unfair trade practices
 Calling for information from, undertaking inspection, conducting
inquiries and audits of the stock exchanges, intermediaries, self –
regulatory organizations, mutual funds and other persons
associated with the securities market.

11. FUNCTIONS
It shall be the duty of the board to protect the interests of investors in
securities and promote the development of, and to regulate the
securities market, by such measures as it thinks fit.
The measures may provide for –
1. Regulating the business in stock exchange and any other
securities markets;
2. 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;
3. 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;

12. Contd…
4. 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;
5. Promoting and regulating self- regulatory organizations;
6. Prohibiting fraudulent and unfair trade practices relating to
securities markets;
7. Promoting investors’ education and training of
intermediaries of securities markets;
8. Prohibiting insider trading in securities;
9. Regulating substantial acquisition of shares and take- over
of companies;

13. Contd…
10. 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;
11. Calling for information and record from any bank or any other
authority or board or corporation in respect of any transaction
in securities which is under investigation or inquiry by the
board;
12. Performing such functions and exercises such powers under
the provisions of the securities contracts (regulation) act, 1956
,as may be delegated to it by the central government ;
13. Levying fees or other charges for carrying out the purposes of
this session;
14. Conducting research for the above purposes;

14. Contd…
15. Calling from or furnishing to any such agencies, as may be
specifies by the board, such information as may be considered
necessary by it for the efficient discharge of its functions;
16. The board may take measures to undertake inspection of any
book, or register, or other document or record of any public
listed company, or a public company which intend 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 under trading or fraudulent and unfair trade
practices relating to security market

15. THANK
YOU