PRESENTED TO: PRESENTED BY:

PROF. V.K.PANDEY ARPIT GOYAL

BUSINESS ENVIRONMENT ROLL NO – 2
MBA 1ST SEM (A)
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CONTENTS OF THE
PRESENTATION
 INTRODUCTION
 ROLE OF SEBI
 FUNCTIONS
 OBJECTIVES
 SEBI POWERS
 SATYAM SCAM CASE

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INTRODUCTION
 SEBI is the Regulator for the Securities Market in India.
Originally set up by the Government of India in 1988, it
acquired statutory form on April 12, 1992 with SEBI Act
1992 being passed by the Indian Parliament. Chaired by
Chandrasekhar Bhaskar Bhave, SEBI is headquartered in
the popular business district of Bandra-Kurla complex in
Mumbai, and has Northern, Eastern, Southern and
Western regional offices in New Delhi, Kolkata, Chennai
and Ahmedabad.

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ROLE OF SEBI

 To regulate the business in Stock Exchange & other

Securities Market.
 To register & regulate the working of Capital market
intermediaries.
 To register & regulate the working of Mutual Funds.
 To promote & regulate Self-regulatory Organization.

 To prohibit fraudulent unfair trade practices in Security

Market.

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ROLE OF SEBI CONTD…

 To promote investors education & training to

intermediaries of Capital Market.
 Prohibit insider training in Securities.

 Regulate acquisition of shares & takeover of companies.

 Performs others functions too.

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FUNCTIONS
 The Board is responsible for the securing the interests of
investors in securities and to facilitate the growth of and
to monitor the securities market in an appropriate
manner.
 To monitor and control the performance of stock
exchange and derivative markets.
 Listing and monitoring the functioning of stock brokers,
sub brokers, share transfer agents, merchant bankers,
underwriters, portfolio managers, investment advisers
and others associated with securities markets by any
means.

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FUNCTIONS CONTD…
 Monitoring and Controlling the functioning of venture
capital funds and mutual funds.
 Forbid unjust and dishonest trade practices in the
security markets and forbid insider trading in the security
market.
 Undertake periodic audits of stock exchanges, mutual
funds, individuals and self regulatory organizations
associated with the security market.

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OBJECTIVES

 To protect the interest of Investors.

 To regulate the Securities Market & ensure fair practices.

 To promote efficient services.

 To facilitate an efficient mobilization & allocation of

resources.

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SEBI POWERS

 Call periodical returns

 Call for any information from Stock Exchanges.
 Direct enquiries of the affairs of Stock Exchanges.
 Power to compel listing of Securities by Public
Companies.
 Power to control & regulate Stock Exchanges.
 Power to grant registration to market intermediaries.
 Power to levy fees or other charges.
 Power to regulate FII etc.,
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SATYAM SCAM CASE

 SEBI, the market regulator began questioning fraud hit

Satyam Computers Ex-CEO Ramalinga Raju on
Wednesday, Feb 4 after it was granted permission by the
Supreme Court of India (SBI). SEBI grilled the Raju
brothers for the coming three days in connection with
the accounting fraud in Satyam.
 Since the day Ramalinga Raju disclosed Rs 7,800 crore
scam (Jan 8) in Satyam, SEBI had been trying to
interrogate the Raju brothers. But Andhra CID arrested
Rajus and he became inaccessible. The Market Regulator
then approached a local court for permission to
interrogate Raju.
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SATYAM SCAM CASE CONTD…

 After the AP High Court repeatedly deferred the SEBI

appeal, it moved to Apex court for 'urgent relief.‘
 SEBI investigated if there was any insider trading angle
to the fraud since Raju had disclosed falsifying profits for
years, which in-turn helped the company to inflate share
prices.

“SEBI PLAYED A CRITICAL ROLE IN THIS SCAM CASE”

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