Sebi (Ifs) Team 11

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1
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.
 C h a i r p e r s o n : A j a y Ty a g i
 Headquarters: Mumbai, Maharashtra
 Founder: Government of India
 Jurisdiction: India
 Employees: 644+(2012) 2 2
History of SEBI
 Initially SEBI was a non statuary body without any statutory

power.
 However in 1995 , the SEBI was given additional statuary

power by the govt. of India through an amendment to the
securities as exchange board of India act 1992.
 In April , 1998 the SEBI was constituted as the regulator of

capital market in India under a resolution of the government
of India.
3 3
Location of SEBI
HEADQUATERS :
 Bandra Kurla Complex in Mumbai,
Maharashtra, and has Northern, Eastern,
Southern and Western Regional.
OFFICES IN NEW:
 Delhi, Kolkata, Chennai and
Ahmedabad, respectively.
 It has opened local offices at Jaipur and
Bangalore and was planning to open
offices at Guwahati, Bhubaneswar,
Patna, Kochi and Chandigarh in
Financial Year 2013 - 2014.
4 4
Reasons for
Establishment of SEBI
Started in stock market such as price
rigging.
Unofficial premium on new issue.
Delay in delivery of shares.
Violation of rules and regulations of
stock exchange and listing
requirements.
So government of India decided to set
up an agency or regulatory body
known as Securities Exchange Board
of India (SEBI). 5
SEBI Committees
 Te c h n i c a l A d v i s o r y C o m m i t t e e
 Committee for review of structure of infrastructure

institutions
 Advisory Committee for the SEBI Investor

Protection and Education Fund
 Ta k e o v e r R e g u l a t i o n s A d v i s o r y C o m m i t t e e
 Primary Market Advisory Committee (PMAC)
 Secondary Market Advisory Committee (SMAC)
 Mutual Fund Advisory Committee
 Corporate Bonds & Securitisation Advisory

Committee 6
Organizational Structure
7 7
DEPARTMENTS
Click to edit Master titleOF SEBI
style
 Market Intermediaries Regulation and Supervision Department (MIRSD)

 Market Regulation Department (MRD)
 Derivatives and New Products Department (DNDP)
 Corporation Finance Department (CFD)
 Investment Management Department (IMD)
 Integrated Surveillance Department (ISD)
 Investigations department (IVD)
 Enforcement department (EFD)
8 8
Continued….
 Legal Affairs Department (LAD)

 Enquiries and Adjudication Department (EAD)
Office of Investor Assistance and Education (OIAD)
General Services Department (GSD)
Department of economic and policy analysis (DEPA)
Office of the chairman (OCH)
Information technology department
The regional offices (RO's)
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Objectives oftitle
Click to edit Master SEBI:
style
P r o t e c t i o n : To p r o t e c t t h e r i g h t s a n d i n t e r e s t s o f t h e i n v e s t o r s
by properly guiding them and ensuring the safety of the money
invested.
Prevention of malpractices: to prevent fraudulent and

malpractices related to trading and regulate the activities of
the stock exchange.
E s t a b l i s h i n g a c o d e o f c o n d u c t : To r e g u l a t e a n d d e v e l o p a
code of conduct for intermediaries such as brokers,
underwriters, and so on.
E s t a b l i s h i n g b a l a n c e : To e s t a b l i s h a b a l a n c e b e t w e e n
statutory regulation and self regulation by the securities
i n d u s t r y.
P r o m o t e p r o p e r f u n c t i o n i n g : To p r o m o t e o r d e r l y f u n c t i o n i n g
of the stock exchange and securities industry by regulating
them. 1010
Functions of SEBI:
Protective Function:
 Controlling Price Rigging - The practice of inflating the price of

stocks, or enhancing their quoted value, by a system of pretended
purchases, creating an unusual demand for such stocks.
 Prohibition of Insider Trading - The employees or executives who

have access to the strategic information about the company, use
the same for trading in the company's stocks or securities, it is
called insider trading and is highly discouraged by the SEBI.
 Prohibition of fraudulent and Unfair Trade Practices.
 SEBI promotes fair practices and code of conduct.
1111
Continued…
Regulatory Function:
 Regulating the business in stock exchange.
 Registration and regulating the working of Stock Brokers, Sub –

Brokers, Merchant Bankers, Depository participants and other
intermediaries.
 Regulation of Collective Investment Schemes.
 Prohibition of Unfair Trade Practices and Insider Trading.
 Regulating substantial acquisition of shares and takeover of

companies.
 Conducting Inquires and Audits of the stock exchanges and others

associated with securities market. 1212
Continued…
Development Function:
 Imparting training to intermediaries
 Promotion of fair trading and reduction of malpractices
 Carry out research work
 Encouraging self-regulating organizations
 Buy-sell mutual funds directly from AMC through a broker
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Powers ofMaster
Click to edit SEBItitle style  Power of Civil Court.
 Powers to suspend trading of any security in

the recognized stock exchange.
 Power to restrain persons from accessing the
securities market.
 Powers to regulate or prohibit issue

of prospectus, offer document or
advertisement soliciting money for
issue of securities.
 To approve by−laws of stock
exchanges.
 To require the stock exchange to
amend their by−laws.
 Power to investigate.
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Continued…
 Inspect the books of accounts and call for
periodical returns from recognized stock
exchanges.
 Inspect the books of accounts of intermediaries.
 Power to cancel certificate.
 Power to impose penalties and adjudication.
 Power to make regulations.
 Power to prohibit the manipulative and
deceptive devices, Insider trading and
substantial acquisition of securities

15
or control.
Primary
“
Market
Secondary
Market
SEBI REGULATES
Mutual Fund
Foreign
Institutional
Investment
1616
RoletoOfedit
Click SEBI In Mutual
Master title styleFunds
 SEBI notified regulations for the mutual funds in 1993.
 SEBI has also issued guidelines to the mutual funds from time
to time to protect the interests of investors.
 All mutual funds whether promoted by public sector or private

sector are governed by SEBI.
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 The rules, regulations and procedures
Click to edit Master title style relating to public issues in India are
Role Of SEBI In IPO governed by SEBI.
 Any company going public in India

should get approval from SEBI before
opening its IPO. Issuer company’s
lead managers submit the public issue
prospectus to SEBI, provide
clarification, make changes to the
prospectus suggested by SEBI and get
it approve.
 SEBI validate the IPO and make sure

that document has enough
information to help investors to take
decision before applying shares in an
IPO. 18
19
Legal Framework of SEBI
 SEBI Act 1992.
 The Securities Contract (Regulation) Act 1956.
 Securities Contract (Regulation) Rules 1957.
 Depositories Act, 1996 [As amended by the Securities

Laws(Amendment) Act, 2014].
2020
SEBI Latest News
 PowerGrid files draft papers for InVIT; plans to raise over Rs 5,000 crore.
 Best of BS Opinion: Budget with a long-term view, corporate earnings & more
 A potentially risky trade-off for markets.
 SEBI bans Tradebizz Research proprietor for 3 years for fraudulent trading.
 Aadhar Housing Finance files Rs 7,300-crore IPO papers with SEBI.
 DCB Plus, partner settle case with SEBI; pay Rs 2.23 cr. as charges.
 Lower fees structure for investment advisors to kick in from April 1: SEBI
 HDFC stock falls after SEBI imposes Rs 1 cr. fine for violating directions
 SEBI slaps Rs 1-crore fine on HDFC Bank in BRH Wealth Kreators case
 SEBI penalises HDFC Bank for wrongly invoking pledge of securities
2121
SEBI ACT 1992
 Establishment, Incorporation and Management of SEBI

 The Powers and Functions of SEBI
 Provisions relating to collective investment schemes
 Registration of an Intermediary
 Penalties
 Dispute Mechanism
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SEBI’s Investor
Protection Strategy
 Investor Education a n d Awareness:
 Build the capacity of investors through education and awareness to enable an investor to take informed investment decision
 SEBI has been organizing investor education and awareness workshops directly
 It maintains an updated, comprehensive web site for education of investors.
 It publishes various kinds of cautions through media.
 It responds to the queries of investors through telephone, e-mails, letters, and in person for those who visit SEBI office.
 SEBI has adopted disclosure based regulatory regime:

 Under this framework, issuers and intermediaries disclose relevant details about themselves, the products, the market and the
regulations so that the investor can take informed investment decisions based on such disclosures.
 SEBI has prescribed and monitors various initial and continuous disclosures.
 Make available every detail relevant for investment in public domain.
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Continued…

Ensure that the market has systems and practices which make transactions safe:
 Screen based trading system
 Dematerialization of securities
 T+2 rolling settlement
 Regulate intermediaries, issue and trading of securities, corporate restructuring, etc.
 It also ensures that only the fit and proper persons are allowed to o p e r a t e i n t h e m a r k e t .
 Facilitate redressal of investor grievances:
 SEBI has a comprehensive mechanism to facilitate redressal of investor grievances against intermediaries and listed
companies.
 It follows up with the companies and intermediaries who do not redress investors' grievances, by sending reminders to them
and having meetings with them.

 It takes appropriate enforcement actions as provided under the law
 The stock exchanges have investor protection funds to compensate investors when a broker is declared a defaulter.
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 Depository indemnifies investors for loss due to negligence of depository or depository participant.
Thank You
TEAM 11:
SAURAV KUMAR DAS

SHASHANK S.
SHOURYA GOWDA
RIYA SINGH
25

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Click to edit Master title style

 Headquarters: Mumbai, Maharashtra

 Founder: Government of India

 Initially SEBI was a non statuary body without any statutory

 However in 1995 , the SEBI was given additional statuary

 In April , 1998 the SEBI was constituted as the regulator of

 Committee for review of structure of infrastructure

 Advisory Committee for the SEBI Investor

 Primary Market Advisory Committee (PMAC)

 Secondary Market Advisory Committee (SMAC)

 Mutual Fund Advisory Committee

 Corporate Bonds & Securitisation Advisory

 Market Intermediaries Regulation and Supervision Department (MIRSD)

 Legal Affairs Department (LAD)

Prevention of malpractices: to prevent fraudulent and

 Controlling Price Rigging - The practice of inflating the price of

 Prohibition of Insider Trading - The employees or executives who

 SEBI promotes fair practices and code of conduct.

 Registration and regulating the working of Stock Brokers, Sub –

 Regulation of Collective Investment Schemes.

 Prohibition of Unfair Trade Practices and Insider Trading.

 Regulating substantial acquisition of shares and takeover of

 Conducting Inquires and Audits of the stock exchanges and others

 Imparting training to intermediaries

 Promotion of fair trading and reduction of malpractices

 Carry out research work

 Encouraging self-regulating organizations

 Buy-sell mutual funds directly from AMC through a broker

 Powers to suspend trading of any security in

 Powers to regulate or prohibit issue

 Inspect the books of accounts of intermediaries.

 Power to cancel certificate.

 Power to impose penalties and adjudication.

 Power to make regulations.

 Power to prohibit the manipulative and

deceptive devices, Insider trading and

substantial acquisition of securities

 SEBI notified regulations for the mutual funds in 1993.

 All mutual funds whether promoted by public sector or private

Role Of SEBI In IPO governed by SEBI.

 Any company going public in India

 SEBI validate the IPO and make sure

 SEBI Act 1992.

 The Securities Contract (Regulation) Act 1956.

 Securities Contract (Regulation) Rules 1957.

 Depositories Act, 1996 [As amended by the Securities

 Establishment, Incorporation and Management of SEBI

 It maintains an updated, comprehensive web site for education of investors.

 It publishes various kinds of cautions through media.

 SEBI has adopted disclosure based regulatory regime:

 Make available every detail relevant for investment in public domain.

 Screen based trading system

 T+2 rolling settlement

 Regulate intermediaries, issue and trading of securities, corporate restructuring, etc.

and having meetings with them.

SAURAV KUMAR DAS

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