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Role of SEBI and Its Power in The Capital Market
Role of SEBI and Its Power in The Capital Market
Benson Varghese Sarita Sapaliga Aditi Mahapadi Dhananjay Joshi Shruti Kerkar
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Quasi-judicial
Quasi-executive
Name
Upendra Kumar Sinha Prashant Saran Rajeev Kumar Agarwal Dr. Thomas Mathew
Designation
Chairman Whole Time Member Whole Time Member Joint Secretary, Ministry of Finance
Member Appointed
Deputy Governor, RBI Secretary, Ministry of Corporate Affairs
Power to issue directions In the best interest of investors To secure the proper management of any such intermediary or person To any company Investigation Inspection of any books, registers and other documents Calling for information and record from any bank or any other authority Conducting research Cease and desist proceedings Suspend the trading of any security Restrain persons from accessing the securities market Suspend any office-bearer from holding such position Regulate or prohibit issue of prospectus, offer document or advertisement soliciting money for issue of securities
Technical Advisory Committee Committee for review of structure of market infrastructure institutions Members of the Advisory Committee for the SEBI Investor Protection and Education Fund Takeover Regulations Advisory Committee Primary Market Advisory Committee (PMAC) Secondary Market Advisory Committee (SMAC) Mutual Fund Advisory Committee Corporate Bonds & Securitization Advisory Committee Takeover Panel SEBI Committee on Disclosures and Accounting Standards (SCODA) High Powered Advisory Committee on consent orders and compounding of offences Derivatives Market Review Committee Committee on Infrastructure Funds
SEBI
Primary Market
Secondary Market
Mutual Funds
Entry norms
Promoters contribution
Disclosure Book building Allocation of shares Market intermediaries
Market Intermediaries Registration and Supervision department (MIRSD) Registration, supervision, compliance monitoring and inspections of all market intermediaries in respect of all segments of the markets viz. equity, equity derivatives, debt and debt related derivatives. Market Regulation Department (MRD) Formulating new policies and supervising the functioning and operations (except relating to derivatives) of securities exchanges, their subsidiaries, and market institutions such as Clearing and settlement organizations and Depositories (Collectively referred to as Market SROs.)
Stock Exchange:
(a) Board of Directors of stock exchange has to be reconstituted so as to include non-members, public representatives, government representative to the extent of 50% of total number of members. (b) Capital adequacy norms have been laid down for members of
Brokers:
(a) Registration of brokers and sub-brokers is made compulsory. (b) Compulsory audit of brokers book and filing of audit report with SEBI have been made mandatory. (c) In order to ensure that brokers are professionally qualified and financially solvent, capital adequacy norms for registration of brokers have been evolved. (d) To bring about greater transparency and accountability in the broker-client relationship, SEBI has made it mandatory for brokers to disclose transaction price and brokerage separately in the contract notes issued to client. (e) No broker is allowed to underwrite more than 5% of public issue.
circular trading
Administrative proceedings
CONTRAVENTION
PENALTY
Contravention of provisions of Insider Trading Regulations Failure to redress the grievances of investors, after having been called upon by the Board in writing to redress the grievances of investors. Indulgence in any Fraudulent and Unfair Trade Practices.
Penalty of Rs. 25 crore or 3 times the amount of profits made out of such insider trading, whichever is higher. Penalty of Rs.1 lakh per day during which such failure continues or Rs. 1 crore, whichever is less
Penalty of Rs. 25 crore or 3 times the amount of profits made out of such practices, whichever is higher.
The RBI Act, the Insurance Act, the SEBI Act and the Securities Contracts Regulation Act were amended on 18 June 2010 and clarity on regulation of ULIPs was brought
Finally SEBI allowed insurers to raise money from existing ULIPs, but asked them not to issue fresh ULIPs
DICGC
IRDA
SAT
FMC
PFRDA
SEBI IRDA
PFRDA FMC
The Financial Sector Legislative Reforms Commission, headed by former justice B N Srikrishna recommended the creation of a super regulator United Financial Agency
The fragmented regulatory architecture has led to a loss of scale and scope
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