Presentation By: Md.

Shamim Akhtar Mithlesh Kumar Singh MBA , Sec-B 3rd Sem

Securities Exchange Board of India

Established on 12 April 1992

Headquarter Mumbai
Chairman -- Upendra Kumar Sinha

INTRODUCTION: The Securities and Exchange Board of India is the regulator for the securities market in India. It was established on 12 April 1992 through the Securities and Exchange Board of India Act, 1992 to protect the interests of the investors in securities and to promote the development of, and to regulate, the securities market and for matters connected therewith and incidental thereto.

Objectives of SEBI
To protect the interests of the investors in

securities
To promote the development of securities

market
To regulate the securities market

Secondary Market:
Secondary Market refers to a market where

securities are traded after being initially offered to the public in the primary market and/or listed on the Stock Exchange. Majority of the trading is done in the secondary market. Secondary market comprises of equity markets and the debt markets.

Role of SEBI in Secondary Market

Governing Board

Infrastructure
Settlement and Clearing

Debt Market
Price Stablisation Delisting Brokers Insider Trading

Governing Board
Governing board brokers and non-brokers

representation made 50:50

60% of brokers in arbitration, disciplinary &

default committees
For trading members 40% representation

Infrastructure
Trade on the stock exchange NSE was

established with the screen based trading

On-line screen based trading terminals

Settlement and Clearing

Weekly settlements Auctions for non-delivered shares within 80

days of settlement Advice to set up clearing houses, clearing corporation or settlement guarantee fund Warehousing facilities permitted by SEBI.

Debt Market Segment

Regulates

through SEBI (depository participants) regulation Act 1996. Listing of debt instruments Investment Range for FIIs Dual rating for above Rs.500 million

&

Price Stabilistion
Division to monitor the unusual movements in prices.

Monitor prices of newly listed scrip from the first day of trading.
Circuit

breaker system and other monitoring restrictions could be applied Imposing of special margins of 25% on purchase in addition to regular margin. Price filters Price bands

Delisting
On voluntary de-listing from regional stock

exchanges buy offer to all share holders Promoters to buy or arrange buyers for the securities 3 yrs listing fees from companies and be kept in Escrow A/c with the stock exchange

Insider Trading
The most profitable technique employed in the stock

market is using ones access to price sensitive information ahead of others. For example Hindustan Lever announced merger of Broke Bond Lipton India with itself on April 16, 1996.Once the information became public, the trading volume and price declined. To prevent this SEBI has come out with the SEBI Insider Trading regulation 1992.

Broker
The regulation of the functioning of the brokers starts

with the registration of the brokers. The registration is given on the basis of the eligibilty to be a memberof any stock exchange, infrastructure facilities like adequate office space, equipment and manpower. He should have past experience in the business of buying, selling or dealing in securities.

Thank you