SlideShare a Scribd company logo
1 of 17
Download to read offline
Prepared
By,
KrishnaKumar SN
THE SECURITIES AND
EXCHANGE BOARD OF
INDIA (SEBI)
INTRODUCTION
• SEBI was established in the year 1988 & given
statutory powers on 12th April, 1992.
• SEBI is the regulator for securities market.
• It has headquarters at Mumbai in Bandra
Kurla complex.
• In April 12, 1988 the SEBI was constituted as
the regulator of capital market.
FUNCTIONS & RESPONSIBILITIES
The SEBI is the regulatory authority of
India under sec 3 of SEBI act, 1992. It
has statutory power for :
• Protecting the interest on investors.
• Promoting the developing of market.
• Regulating the securities market.
It has power for :
• Regulating the business in stock exchange & any
other securities markets.
• Registering & regulating the working of stock
brokers, sub-brokers etc.
Register
 Authority
• Promoting & regulating self-regulating
organization.
• Prohibiting fraudulent & unfair trade practices.
ORGANISATION
SEBI has divided its activities in to three operational
departments, each headed by an Executive Director.
 Primary Market Department: It deals with all
policy matters and regulatory issues relating to
primary market.
 Issue Management and Intermediaries
Departments : This department is concerned with
inspection of offer documents and other things like
registration, regulation and monitoring of issue
related to intermediaries.
Secondary Market Department: It looks after all
the policy and regulatory issues for the secondary
market; administration of the major stock
exchanges and other matters related to it.
WHO DECIDES THE PRICE OF SHARES?
 SEBI does not play any role in price fixation.
There are two types of issues
 Company and the Lead Merchant Banker fix a
price called fixed price.
Price discovery through book building process.
Shares
A share is a unit of account for
various investments. It often means
the stock of a corporation, but is also
used for collective investments such
as mutual funds, limited
partnerships, and real estate
investment trust.
Equity Shares
An equity share, commonly referred
to as ordinary share, represents the
form of fractional ownership in a
business venture.
Bonds
It’s a debt instrument, a contract
whereby one party lends money to
another on pre-determined terms
with regards to rate and periodicity
of interest, repayment of principal
amount by the borrower to the
lender.
Derivative
Derivative is a product whose value
is derived from the value of one or
more basic variables, called
underlying.
Debenture
The company will issue the shares to
public when it needs amount for
expansion for business.
Preference Shares
Preference shares are those, which
enjoy the following two preferential
rights:
• Dividend at a fixed rate or a fixed
amount on these shares before any
dividend on equity shares.
• Return on preference share capital
before the return of equity share capital
at the time of winding up of the
company.
Conclusion
• Today SEBI has become the authorisation
body to form the rules & regulation for
the stock markets in both capital &
money market due to the emergence of
SEBI the number of unethical practices in
share market has been reduced
proportionately. It shows the active
participation of the exchange board in
order to control & regulate the trading
activities.
• It is suggested that more power to
be handled to SEBI from the union
government in order to mitigate the
unethical practices like insider
trading & stock market frauds
(sathyam scam, DLF) are to be
identified & protect the interest of
the individual as well as institution
investor.
Thank You

More Related Content

What's hot

Reforms in indian capital market
Reforms in indian capital marketReforms in indian capital market
Reforms in indian capital marketAdhiroop B
 
Investors Protection-Grievances and their Redressal for B.Com, M.Com
Investors Protection-Grievances and their Redressal for B.Com, M.ComInvestors Protection-Grievances and their Redressal for B.Com, M.Com
Investors Protection-Grievances and their Redressal for B.Com, M.ComDr. Toran Lal Verma
 
Securities and exchange board of india
Securities and exchange board of indiaSecurities and exchange board of india
Securities and exchange board of indiaAshish Jain
 
Role of rbi as a regulator
Role of rbi as a regulatorRole of rbi as a regulator
Role of rbi as a regulatorUjjwal 'Shanu'
 
SEBI's Role In Capital Market
SEBI's Role In Capital MarketSEBI's Role In Capital Market
SEBI's Role In Capital MarketSagar Agrawal
 
Evolution of banking
Evolution of bankingEvolution of banking
Evolution of bankingVinor5
 
Functions of stock exchange
Functions of stock exchangeFunctions of stock exchange
Functions of stock exchangeSyed Jasam
 
money market and capital market
money market and capital marketmoney market and capital market
money market and capital marketPrateek Nepal
 
Banking Regulation Act, 1949
Banking Regulation Act, 1949Banking Regulation Act, 1949
Banking Regulation Act, 1949Kajal Bansal
 
New Issue Market
New Issue MarketNew Issue Market
New Issue MarketCma Agarwal
 
Stock exchanges in india
Stock exchanges in indiaStock exchanges in india
Stock exchanges in indiaAbhinav Kp
 
Absorption of Company.pptx
Absorption of Company.pptxAbsorption of Company.pptx
Absorption of Company.pptxSnehal Pandey
 
Structure of Indian Banking System
Structure of Indian Banking SystemStructure of Indian Banking System
Structure of Indian Banking SystemDr. S. Bulomine Regi
 

What's hot (20)

Reforms in indian capital market
Reforms in indian capital marketReforms in indian capital market
Reforms in indian capital market
 
Sebi presentation
Sebi presentationSebi presentation
Sebi presentation
 
Government securities
Government securitiesGovernment securities
Government securities
 
Investors Protection-Grievances and their Redressal for B.Com, M.Com
Investors Protection-Grievances and their Redressal for B.Com, M.ComInvestors Protection-Grievances and their Redressal for B.Com, M.Com
Investors Protection-Grievances and their Redressal for B.Com, M.Com
 
Securities market
Securities marketSecurities market
Securities market
 
Securities and exchange board of india
Securities and exchange board of indiaSecurities and exchange board of india
Securities and exchange board of india
 
Role of rbi as a regulator
Role of rbi as a regulatorRole of rbi as a regulator
Role of rbi as a regulator
 
SEBI's Role In Capital Market
SEBI's Role In Capital MarketSEBI's Role In Capital Market
SEBI's Role In Capital Market
 
Evolution of banking
Evolution of bankingEvolution of banking
Evolution of banking
 
Functions of stock exchange
Functions of stock exchangeFunctions of stock exchange
Functions of stock exchange
 
RBI
RBIRBI
RBI
 
Capital market
Capital marketCapital market
Capital market
 
money market and capital market
money market and capital marketmoney market and capital market
money market and capital market
 
Banking Regulation Act, 1949
Banking Regulation Act, 1949Banking Regulation Act, 1949
Banking Regulation Act, 1949
 
New Issue Market
New Issue MarketNew Issue Market
New Issue Market
 
Stock exchanges in india
Stock exchanges in indiaStock exchanges in india
Stock exchanges in india
 
Financial institutions
Financial institutions Financial institutions
Financial institutions
 
Absorption of Company.pptx
Absorption of Company.pptxAbsorption of Company.pptx
Absorption of Company.pptx
 
Sebi
SebiSebi
Sebi
 
Structure of Indian Banking System
Structure of Indian Banking SystemStructure of Indian Banking System
Structure of Indian Banking System
 

Viewers also liked

Security Exchange Board of India (SEBI)
Security Exchange Board of India (SEBI)Security Exchange Board of India (SEBI)
Security Exchange Board of India (SEBI)mahadeva prasad
 
SEBI Presentation
SEBI PresentationSEBI Presentation
SEBI PresentationDivya Kalra
 
Sahara V/s Sebi Case analysis (Law point of view)
Sahara V/s Sebi Case analysis (Law point of view)Sahara V/s Sebi Case analysis (Law point of view)
Sahara V/s Sebi Case analysis (Law point of view)Svasani
 
SEBI Startup Listing (ACRP - Alternate Capital Raising Platform)
SEBI Startup Listing (ACRP - Alternate Capital Raising Platform)SEBI Startup Listing (ACRP - Alternate Capital Raising Platform)
SEBI Startup Listing (ACRP - Alternate Capital Raising Platform)Jaydeep Halbe
 
Customer Master En
Customer Master EnCustomer Master En
Customer Master EnATI Solution
 
Account Recievable and Account Payable
Account Recievable and Account PayableAccount Recievable and Account Payable
Account Recievable and Account PayableHabeeb Rahman
 
Litreture review
Litreture reviewLitreture review
Litreture reviewdulanjan90
 
Security And Exchange Board (SEBI)
Security And Exchange Board (SEBI)Security And Exchange Board (SEBI)
Security And Exchange Board (SEBI)Anand Kumar
 
A project report on overview of portfolio management in india
A project report on overview of portfolio management in indiaA project report on overview of portfolio management in india
A project report on overview of portfolio management in indiaProjects Kart
 
Financial Market Instruments
Financial Market InstrumentsFinancial Market Instruments
Financial Market InstrumentsKushal Setty
 
A project report on portfolio management
A project report on portfolio managementA project report on portfolio management
A project report on portfolio managementProjects Kart
 

Viewers also liked (16)

Security Exchange Board of India (SEBI)
Security Exchange Board of India (SEBI)Security Exchange Board of India (SEBI)
Security Exchange Board of India (SEBI)
 
SEBI Presentation
SEBI PresentationSEBI Presentation
SEBI Presentation
 
Sahara V/s Sebi Case analysis (Law point of view)
Sahara V/s Sebi Case analysis (Law point of view)Sahara V/s Sebi Case analysis (Law point of view)
Sahara V/s Sebi Case analysis (Law point of view)
 
SHUBHAM ppt
SHUBHAM pptSHUBHAM ppt
SHUBHAM ppt
 
SEBI Startup Listing (ACRP - Alternate Capital Raising Platform)
SEBI Startup Listing (ACRP - Alternate Capital Raising Platform)SEBI Startup Listing (ACRP - Alternate Capital Raising Platform)
SEBI Startup Listing (ACRP - Alternate Capital Raising Platform)
 
Sebi
SebiSebi
Sebi
 
Customer Master En
Customer Master EnCustomer Master En
Customer Master En
 
Real estate mutual funds
Real estate mutual fundsReal estate mutual funds
Real estate mutual funds
 
Real Estate Mutual Fund
Real Estate Mutual FundReal Estate Mutual Fund
Real Estate Mutual Fund
 
Vendor Master En
Vendor Master EnVendor Master En
Vendor Master En
 
Account Recievable and Account Payable
Account Recievable and Account PayableAccount Recievable and Account Payable
Account Recievable and Account Payable
 
Litreture review
Litreture reviewLitreture review
Litreture review
 
Security And Exchange Board (SEBI)
Security And Exchange Board (SEBI)Security And Exchange Board (SEBI)
Security And Exchange Board (SEBI)
 
A project report on overview of portfolio management in india
A project report on overview of portfolio management in indiaA project report on overview of portfolio management in india
A project report on overview of portfolio management in india
 
Financial Market Instruments
Financial Market InstrumentsFinancial Market Instruments
Financial Market Instruments
 
A project report on portfolio management
A project report on portfolio managementA project report on portfolio management
A project report on portfolio management
 

Similar to SEBI (20)

Capital market
Capital marketCapital market
Capital market
 
sebi ppt by ashraf
sebi ppt by ashrafsebi ppt by ashraf
sebi ppt by ashraf
 
INVESTING IN STOCK MARKETS PPT.pptx
INVESTING IN STOCK MARKETS PPT.pptxINVESTING IN STOCK MARKETS PPT.pptx
INVESTING IN STOCK MARKETS PPT.pptx
 
Mutual fund
Mutual fundMutual fund
Mutual fund
 
Angelchetna2
Angelchetna2Angelchetna2
Angelchetna2
 
Mutual fund
Mutual fundMutual fund
Mutual fund
 
SEBI
SEBISEBI
SEBI
 
SEBI ACT 1992
SEBI ACT 1992SEBI ACT 1992
SEBI ACT 1992
 
Capital Markets
Capital MarketsCapital Markets
Capital Markets
 
Corporate governance
Corporate governanceCorporate governance
Corporate governance
 
Regulatory framework of mutual funds
Regulatory framework of mutual funds Regulatory framework of mutual funds
Regulatory framework of mutual funds
 
Mutual funds & schemes
Mutual funds & schemesMutual funds & schemes
Mutual funds & schemes
 
SEBI ACT 1992.pptx.pptx
SEBI  ACT 1992.pptx.pptxSEBI  ACT 1992.pptx.pptx
SEBI ACT 1992.pptx.pptx
 
Investment Managment SEBI
Investment Managment SEBIInvestment Managment SEBI
Investment Managment SEBI
 
1.2 SEBI.pptx
1.2 SEBI.pptx1.2 SEBI.pptx
1.2 SEBI.pptx
 
SEBI
SEBI SEBI
SEBI
 
PPT on INVESTOR
PPT on INVESTORPPT on INVESTOR
PPT on INVESTOR
 
Fm ppt
Fm pptFm ppt
Fm ppt
 
Sebi
SebiSebi
Sebi
 
Final sebi
Final sebiFinal sebi
Final sebi
 

More from Krishna SN

Evaluating Risk and Return of Assets and Liabilities of Financial Institution
Evaluating Risk and Return of Assets and Liabilities of Financial InstitutionEvaluating Risk and Return of Assets and Liabilities of Financial Institution
Evaluating Risk and Return of Assets and Liabilities of Financial InstitutionKrishna SN
 
Indian Derivatives Market
Indian Derivatives MarketIndian Derivatives Market
Indian Derivatives MarketKrishna SN
 
Reward Management
Reward ManagementReward Management
Reward ManagementKrishna SN
 
Industrial Development Bank Of India
Industrial Development Bank Of IndiaIndustrial Development Bank Of India
Industrial Development Bank Of IndiaKrishna SN
 
Forecasting and demand measurement
Forecasting and demand measurement  Forecasting and demand measurement
Forecasting and demand measurement Krishna SN
 
Presentation on Environmental scanning
Presentation on Environmental scanningPresentation on Environmental scanning
Presentation on Environmental scanningKrishna SN
 

More from Krishna SN (6)

Evaluating Risk and Return of Assets and Liabilities of Financial Institution
Evaluating Risk and Return of Assets and Liabilities of Financial InstitutionEvaluating Risk and Return of Assets and Liabilities of Financial Institution
Evaluating Risk and Return of Assets and Liabilities of Financial Institution
 
Indian Derivatives Market
Indian Derivatives MarketIndian Derivatives Market
Indian Derivatives Market
 
Reward Management
Reward ManagementReward Management
Reward Management
 
Industrial Development Bank Of India
Industrial Development Bank Of IndiaIndustrial Development Bank Of India
Industrial Development Bank Of India
 
Forecasting and demand measurement
Forecasting and demand measurement  Forecasting and demand measurement
Forecasting and demand measurement
 
Presentation on Environmental scanning
Presentation on Environmental scanningPresentation on Environmental scanning
Presentation on Environmental scanning
 

Recently uploaded

Human-AI Co-Creation of Worked Examples for Programming Classes
Human-AI Co-Creation of Worked Examples for Programming ClassesHuman-AI Co-Creation of Worked Examples for Programming Classes
Human-AI Co-Creation of Worked Examples for Programming ClassesMohammad Hassany
 
UKCGE Parental Leave Discussion March 2024
UKCGE Parental Leave Discussion March 2024UKCGE Parental Leave Discussion March 2024
UKCGE Parental Leave Discussion March 2024UKCGE
 
M-2- General Reactions of amino acids.pptx
M-2- General Reactions of amino acids.pptxM-2- General Reactions of amino acids.pptx
M-2- General Reactions of amino acids.pptxDr. Santhosh Kumar. N
 
How to Add a many2many Relational Field in Odoo 17
How to Add a many2many Relational Field in Odoo 17How to Add a many2many Relational Field in Odoo 17
How to Add a many2many Relational Field in Odoo 17Celine George
 
CAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptxCAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptxSaurabhParmar42
 
In - Vivo and In - Vitro Correlation.pptx
In - Vivo and In - Vitro Correlation.pptxIn - Vivo and In - Vitro Correlation.pptx
In - Vivo and In - Vitro Correlation.pptxAditiChauhan701637
 
Philosophy of Education and Educational Philosophy
Philosophy of Education  and Educational PhilosophyPhilosophy of Education  and Educational Philosophy
Philosophy of Education and Educational PhilosophyShuvankar Madhu
 
Maximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdf
Maximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdfMaximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdf
Maximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdfTechSoup
 
HED Office Sohayok Exam Question Solution 2023.pdf
HED Office Sohayok Exam Question Solution 2023.pdfHED Office Sohayok Exam Question Solution 2023.pdf
HED Office Sohayok Exam Question Solution 2023.pdfMohonDas
 
Diploma in Nursing Admission Test Question Solution 2023.pdf
Diploma in Nursing Admission Test Question Solution 2023.pdfDiploma in Nursing Admission Test Question Solution 2023.pdf
Diploma in Nursing Admission Test Question Solution 2023.pdfMohonDas
 
Easter in the USA presentation by Chloe.
Easter in the USA presentation by Chloe.Easter in the USA presentation by Chloe.
Easter in the USA presentation by Chloe.EnglishCEIPdeSigeiro
 
Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.raviapr7
 
How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17Celine George
 
Quality Assurance_GOOD LABORATORY PRACTICE
Quality Assurance_GOOD LABORATORY PRACTICEQuality Assurance_GOOD LABORATORY PRACTICE
Quality Assurance_GOOD LABORATORY PRACTICESayali Powar
 
Education and training program in the hospital APR.pptx
Education and training program in the hospital APR.pptxEducation and training program in the hospital APR.pptx
Education and training program in the hospital APR.pptxraviapr7
 
The Singapore Teaching Practice document
The Singapore Teaching Practice documentThe Singapore Teaching Practice document
The Singapore Teaching Practice documentXsasf Sfdfasd
 
How to Use api.constrains ( ) in Odoo 17
How to Use api.constrains ( ) in Odoo 17How to Use api.constrains ( ) in Odoo 17
How to Use api.constrains ( ) in Odoo 17Celine George
 
CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...
CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...
CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...Nguyen Thanh Tu Collection
 

Recently uploaded (20)

Human-AI Co-Creation of Worked Examples for Programming Classes
Human-AI Co-Creation of Worked Examples for Programming ClassesHuman-AI Co-Creation of Worked Examples for Programming Classes
Human-AI Co-Creation of Worked Examples for Programming Classes
 
UKCGE Parental Leave Discussion March 2024
UKCGE Parental Leave Discussion March 2024UKCGE Parental Leave Discussion March 2024
UKCGE Parental Leave Discussion March 2024
 
M-2- General Reactions of amino acids.pptx
M-2- General Reactions of amino acids.pptxM-2- General Reactions of amino acids.pptx
M-2- General Reactions of amino acids.pptx
 
How to Add a many2many Relational Field in Odoo 17
How to Add a many2many Relational Field in Odoo 17How to Add a many2many Relational Field in Odoo 17
How to Add a many2many Relational Field in Odoo 17
 
CAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptxCAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptx
 
In - Vivo and In - Vitro Correlation.pptx
In - Vivo and In - Vitro Correlation.pptxIn - Vivo and In - Vitro Correlation.pptx
In - Vivo and In - Vitro Correlation.pptx
 
Philosophy of Education and Educational Philosophy
Philosophy of Education  and Educational PhilosophyPhilosophy of Education  and Educational Philosophy
Philosophy of Education and Educational Philosophy
 
Maximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdf
Maximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdfMaximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdf
Maximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdf
 
HED Office Sohayok Exam Question Solution 2023.pdf
HED Office Sohayok Exam Question Solution 2023.pdfHED Office Sohayok Exam Question Solution 2023.pdf
HED Office Sohayok Exam Question Solution 2023.pdf
 
Diploma in Nursing Admission Test Question Solution 2023.pdf
Diploma in Nursing Admission Test Question Solution 2023.pdfDiploma in Nursing Admission Test Question Solution 2023.pdf
Diploma in Nursing Admission Test Question Solution 2023.pdf
 
Easter in the USA presentation by Chloe.
Easter in the USA presentation by Chloe.Easter in the USA presentation by Chloe.
Easter in the USA presentation by Chloe.
 
Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.
 
Finals of Kant get Marx 2.0 : a general politics quiz
Finals of Kant get Marx 2.0 : a general politics quizFinals of Kant get Marx 2.0 : a general politics quiz
Finals of Kant get Marx 2.0 : a general politics quiz
 
How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17
 
Quality Assurance_GOOD LABORATORY PRACTICE
Quality Assurance_GOOD LABORATORY PRACTICEQuality Assurance_GOOD LABORATORY PRACTICE
Quality Assurance_GOOD LABORATORY PRACTICE
 
Education and training program in the hospital APR.pptx
Education and training program in the hospital APR.pptxEducation and training program in the hospital APR.pptx
Education and training program in the hospital APR.pptx
 
The Singapore Teaching Practice document
The Singapore Teaching Practice documentThe Singapore Teaching Practice document
The Singapore Teaching Practice document
 
How to Use api.constrains ( ) in Odoo 17
How to Use api.constrains ( ) in Odoo 17How to Use api.constrains ( ) in Odoo 17
How to Use api.constrains ( ) in Odoo 17
 
CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...
CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...
CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...
 
Personal Resilience in Project Management 2 - TV Edit 1a.pdf
Personal Resilience in Project Management 2 - TV Edit 1a.pdfPersonal Resilience in Project Management 2 - TV Edit 1a.pdf
Personal Resilience in Project Management 2 - TV Edit 1a.pdf
 

SEBI

  • 2. THE SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI)
  • 3. INTRODUCTION • SEBI was established in the year 1988 & given statutory powers on 12th April, 1992. • SEBI is the regulator for securities market. • It has headquarters at Mumbai in Bandra Kurla complex. • In April 12, 1988 the SEBI was constituted as the regulator of capital market.
  • 4. FUNCTIONS & RESPONSIBILITIES The SEBI is the regulatory authority of India under sec 3 of SEBI act, 1992. It has statutory power for : • Protecting the interest on investors. • Promoting the developing of market. • Regulating the securities market.
  • 5. It has power for : • Regulating the business in stock exchange & any other securities markets. • Registering & regulating the working of stock brokers, sub-brokers etc. Register  Authority • Promoting & regulating self-regulating organization. • Prohibiting fraudulent & unfair trade practices.
  • 6. ORGANISATION SEBI has divided its activities in to three operational departments, each headed by an Executive Director.  Primary Market Department: It deals with all policy matters and regulatory issues relating to primary market.  Issue Management and Intermediaries Departments : This department is concerned with inspection of offer documents and other things like registration, regulation and monitoring of issue related to intermediaries.
  • 7. Secondary Market Department: It looks after all the policy and regulatory issues for the secondary market; administration of the major stock exchanges and other matters related to it.
  • 8. WHO DECIDES THE PRICE OF SHARES?  SEBI does not play any role in price fixation. There are two types of issues  Company and the Lead Merchant Banker fix a price called fixed price. Price discovery through book building process.
  • 9. Shares A share is a unit of account for various investments. It often means the stock of a corporation, but is also used for collective investments such as mutual funds, limited partnerships, and real estate investment trust.
  • 10. Equity Shares An equity share, commonly referred to as ordinary share, represents the form of fractional ownership in a business venture.
  • 11. Bonds It’s a debt instrument, a contract whereby one party lends money to another on pre-determined terms with regards to rate and periodicity of interest, repayment of principal amount by the borrower to the lender.
  • 12. Derivative Derivative is a product whose value is derived from the value of one or more basic variables, called underlying.
  • 13. Debenture The company will issue the shares to public when it needs amount for expansion for business.
  • 14. Preference Shares Preference shares are those, which enjoy the following two preferential rights: • Dividend at a fixed rate or a fixed amount on these shares before any dividend on equity shares. • Return on preference share capital before the return of equity share capital at the time of winding up of the company.
  • 15. Conclusion • Today SEBI has become the authorisation body to form the rules & regulation for the stock markets in both capital & money market due to the emergence of SEBI the number of unethical practices in share market has been reduced proportionately. It shows the active participation of the exchange board in order to control & regulate the trading activities.
  • 16. • It is suggested that more power to be handled to SEBI from the union government in order to mitigate the unethical practices like insider trading & stock market frauds (sathyam scam, DLF) are to be identified & protect the interest of the individual as well as institution investor.