Securities and Exchange

Board of India
(SEBI)

GROUP MEMBERS:
Arushi Dhamija – 15103029
Ankit Jain – 15103030
Ankush Singla – 15103031
Gurkaran Singh – 15103032
Gurwinder Singh Saini - 15103033
Overview
 Establishment

 Objectives of SEBI

 Structure of the organization

 Role and Functions of SEBI

 Powers of SEBI

 Relationship with central government

Establishment
 Established by Government of India through an
executive action in 1988

 Made fully autonomous in 1992 by passing of Securities

and Exchange Board of India Act (SEBI Act)
Reasons for establishment
 Expanding investor population and market capitalization
during 1980’s

 Various malpractices like rigging of prices, unofficial

premium on new issues, delay in delivery of shares, etc.

 So a regulatory body known as SEBI was setup by

Government of India
Objectives of SEBI
 To protect the interest of investors, so that, there is a
steady flow of savings into the capital market

 To regulate the securities market and ensure fair

practices

 To promote efficient services by brokers, merchant

banks, and other intermediaries, so that, they become
competitive and professional
Structure of SEBI
The board consists of following members:
 A Chairman

 Two members, one official from Ministry of Central

Government dealing with Finance and second from
administration of the Companies Act, 1956

 One member from amongst the officials of RBI

 Five other members of whom at least three shall be the

whole-time members to be appointed by the central
government.
Departments under SEBI
 Primary Market Department: deals with all policy
matters and regulatory issues related to primary market

 Issue Management Department: inspection of offer

documents, registration, regulation and monitoring of issue
related to intermediaries

 Secondary Market Department: looks after policy and

regulatory issues for the secondary market

 Institutional Investment Department: concerned with

framing policy for Foreign Institutional Investors (FPIs)
Role and functions of SEBI
 To the issuers: to provide a market where they can
confidently raise finances in easy and fair manner

 To the investors: to protect their rights and interests

through adequate and authentic disclosure of information

 To the intermediaries: to offer a competitive, professional

and expanding market with adequate infrastructure so that
they could give better services to investors and issuers

 SEBI ensures all these through its regulatory and

developmental functions
Regulatory functions
 Regulation of stock exchange

 Registration and regulation of stock brokers, merchant

bankers, underwriters, etc.

 Registration and regulation of the working of collective

investment schemes including mutual funds

 Prohibition of fraudulent and unfair trade practices relating

to securities market

 Regulating substantial acquisition of shares and takeover of

companies
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

Powers of SEBI
 Power to control and regulate stock exchanges

 Power to call returns from recognized stock exchanges

 Power to compel listing of securities by public

companies

 Power to levy fees for carrying out the purposes of

regulation

 Power to grant registration to market intermediaries

Relationship with Government
 Central Government has power to issue directions to
SEBI Board, supersede the board if necessary and to call
for reports when necessary

 SEBI’s activities are financed by grants from Central

Government, in addition to fees, charges, etc. collected
by SEBI

 The fund called SEBI General Fund is setup to which all

fees, charges and grants are credited used to meet the
expenses and pay salaries of staff
Thanks