SEBI

Introduction
 SEBI (Securities and Exchange Board of India) -
Introduction
SEBI plays a crucial role in regulating all the players
operating in the Indian capital markets. It protects the
interest of investors and aims at developing the capital
markets by enforcing various rules and regulations.
 About SEBI
The Securities and Exchange Board of India was established
on April 12, 1992 in accordance with the provisions of the
Securities and Exchange Board of India Act, 1992.
• It is a statutory regulatory body.
• It monitors and regulates the Indian capital and
securities market while ensuring to protect the interests
of the investors formulating regulations and guidelines to
be adhered to.
• Headquarter of SEBI: Bandra Kurla Complex, Mumbai.
• Present Chairman of SEBI: Ajay Tyagi
 Composition of SEBI
SEBI has framework comprising of various departments
each managed by a department head. There are about 20+
departments under SEBI including corporation finance,
economic and policy analysis, debt and hybrid securities,
enforcement, human resources, investment management,
commodity derivatives market regulation, legal affairs, and
more.
The Management of SEBI consist of the following:
• Chairman of SEBI who is nominated by the Union Government
of India.
• Two officers from the Union Finance Ministry who will be a
part of this structure dealing with Finance
• One member appointed from the Reserve Bank of India.
• Five other members of whom at least three shall be the
whole-time member will be nominated by the Union
Government of India.
• Securities Appellate Tribunal (SAT): It has been constituted to
protect the interest of entities that feel aggrieved by SEBI’s
decision. It consists of a Presiding Officer and two other
Members. It has the same powers as vested in a civil court.
 Achievements of SEBI
• SEBI has enjoyed success as a regulator by pushing systematic
reforms aggressively and successively.
• SEBI is credited for quick movement towards making the
markets electronic and paperless by introducing T+5 rolling
cycle from July 2001 and T+3 in April 2002 and further to T+2
in April 2003.
• SEBI has been active in setting up the regulations as required
under law.
• SEBI did away with physical certificates that were prone to
postal delays, theft and forgery, apart from making the
settlement process slow and cumbersome by passing
Depositories Act, 1996.
• SEBI has also been instrumental in taking quick and
effective steps in light of the global meltdown and the
Satyam fiasco.
• In October 2011, it increased the extent and quantity of
disclosures to be made by Indian corporate promoters.
• Today, the Indian capital market can compare favourably
with mature markets.
• New initiatives for improving analytical capabilities,
strengthening surveillance & risk management and to
promote research have been taken by SEBI in recent
years to counter the volatility in market.
 Departments of SEBI
SEBI regulates Indian financial market through its 20 dedicated
departments:
• Commodity Derivatives Market Regulation Department (CDMRD)
• Corporation Finance Department (CFD)
• Department of Economic and Policy Analysis (DEPA)
• Department of Debt and Hybrid Securities (DDHS)
• Enforcement Department – 1 (EFD1)
• Enforcement Department – 2 (EFD2)
• Enquiries and Adjudication Department (EAD)
• General Services Department (GSD)
• Human Resources Department (HRDM)
• Information Technology Department (ITD)
• Integrated Surveillance Department (ISD)
• Investigations Department (IVD)
• Investment Management Department (IMD)
• Legal Affairs Department (LAD)
• Market Intermediaries Regulation and Supervision
Department (MIRSD)
• Market Regulation Department (MRD)
• Office of International Affairs (OIA)
• Office of Investor Assistance and Education (OIAE)
• Office of the chairman (OCH)
• Regional offices (ROs)