Securities and Exchange

Board of India
Presented by
Neena Chandra BS
Nithya Thampi
Securities and Exchange Board of India (SEBI) is
apex body for the development and regulation of
securities market in India.
It was established in 1988 and given statutory
powers on 30 January 1992 through the SEBI Act
1992.
They are the governing body for financial regulation
in India.
The primary function of SEBI is to protect the
interest of the investors in securities ,promote the
development of capital market and to regulate the
security market .
The headquarters of SEBI are in Mumbai.
Reason for the establishment of SEBI
The capital market had witnessed a tremendous
growth during the 1980’s.
This ever expanding investor population and market
capitalization led to a variety of malpractices.
These malpractices include rigging of prices ,
unofficial premium on new issues, violation of rules
and regulation ,delay in delivery of shares etc.
So, the Government of India decide to set-up a
separate regulatory body known as SEBI.
 Organization Structure
The SEBI is a corporate structure with five departments
that have a department head.
It has two advisory committees that are responsible for
primary and secondary market.
There are main 9 members on the SEBI Board.
1.One chairman appointed by Government of India.
2.Two members are officers form union finance
ministry.
3.One member from Reserve Bank of India (RBI).
4.Five members are appointed by Union Government of
Departments under SEBI

Primary market department

Secondary market department
Issue management department
Institutional investment department.
Primary market department : it deals with
all policy matters and regulatory issues
relating to primary market.

Issue management and intermediaries

department : 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 exchange and other matters related to it.

Institutional investment department : it

concerned with framing policy for foreign
institutional investors.
Objectives of SEBI
The primary objective of SEBI is to promote
healthy and orderly growth of the securities
market and secure investor protection. The
main objectives are as follows:

Investor protection: Inorder to have a steady

flow of saving into the capital market, the
interests of the investors have to be protected.
Ensure fair practices: SEBI has to regulate
the regulate the securities market and
ensure fair practices.

Promotion of efficient services: SEBI has to

promote the efficient service rendered by
brokers, merchant bankers and other
intermediaries , inorder to make them
competitive and professional.
 Role of SEBI
To the issuers - it aims to provide a market place in which they can
confidently look forward to raising finances they need in an easy, fair
and efficient manner.

To the investors- it should provide protection of their rights and

interests through adequate, accurate and authentic information and
disclosure of information on a continuous basis.

To the intermediaries – it should offer a competitive ,

professionalized and expanding market with adequate and efficient
infrastructure so that they are able to render better service to the
investors and issuers.
Functions of SEBI

The SEBI Act, 1992 has entrusted with two functions,

they are;

• Regulatory functions
• Developmental function
 Regulatory functions
Regulation of stock exchange and self regulatory
organizations.
Registration and regulation of stock brokers , sub-brokers ,
Registrars to all issues ,merchant bankers , underwriters ,
portfolio managers 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.
Prohibition of insider trading.
Regulating substantial acquisition of shares and take over of
Developmental functions

Promoting investors education

Training of intermediaries

Conducting research and publishing information useful to all

market participants.

Promotion of fair practices

Promotion of self regulatory organisations

Power of SEBI

Power to call for periodical returns from stock

exchange.
Grant approval to any recognized stock exchange to
make bye-laws for the regulation or control of
contracts.
Power to control f regulate stock exchanges.
Power to make or amend bye-laws of recognized
stock exchanges.
Power to compel a public company to list its shares
in any stock exchange.
Licensing of dealers in securities in certain areas.
Power to appoint any person to make enquiries into
the affairs of stock exchange.
Power to suspend business of any recognized stock
exchange.
Power to prohibit contract in certain cases.
Power to grant registration to market intermediaries.
Thank you…..