www.sebi.gov.

in

In 1988 the Securities and Exchange Board of India (SEBI) was established by the Government of India through an executive resolution, and was subsequently upgraded as a fully autonomous body (a statutory Board) in the year 1992 with the passing of the Securities and Exchange Board of India Act (SEBI Act) on 30th January 1992. PREAMBLE The Preamble of the Securities and Exchange Board of India describes the basic functions of the Securities and Exchange Board of India as ..to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto 2

Management of the Board The Board shall consist of the following members, namely:a) a Chairman b) Two members, One from amongst the officials of the

Ministry of the Central Government dealing with Finance and second from administration of the Companies Act, 1956. c) One member from amongst the officials of the Reserve Bank of India. d) Five other members of whom at least three shall be the whole-time members to be appointed by the central Government .
3

The primary objective of SEBI is to promote healthy and orderly growth -of the securities market and secure investor protection. The objectives of SEBI are as follows: To protect the interest of investors, so that, there is a steady flow of savings into the capital market. To regulate the securities market and ensure fair practices. To promote efficient services by brokers, merchant bankers, and other intermediaries, so that, they become competitive and professional.
4

The SEBI Act, 1992 has entrusted with two functions, they are Regulatory functions And Developmental functions

Regulation of stock exchange and self regulatory organizations. Registration and regulation of stock brokers, sub-brokers, Registrars to all issues, merchant bankers, underwriters, portfolio managers etc. Registration and regulation of the working of collective investment schemes including mutual funds. Prohibition of fraudulent and unfair trade practices relating to securities market. Prohibition of insider trading Regulating substantial acquisition of shares and takeover of companies.

Promoting investors education Training of intermediaries Conducting research and publishing information useful to all market participants. Promotion of fair practices Promotion of self regulatory organizations

S. No. 1. 2. 3. 4. 5. 6. 7. 8.

Name of Dept.
MARKET INTERMEDIARIES REGULATION AND SUPERVISION DEPARTMENT (MIRSD) DERIVATIVES AND NEW PRODUCTS DEPARTMENT (DNPD) INVESTMENT MANAGEMENT DEPARTMENT (IMD) INVESTIGATIONS DEPARTMENT (IVD) LEGAL AFFAIRS DEPARTMENT (LAD) OFFICE OF INVESTOR ASSISTANCE & EDUCATION (OIAE) DEPARTMENT OF ECONOMIC & POLICY ANALYSIS (DEPA) INFORMATION TECHNOLOGY DEPARTMENT (ITD)8

S. No. 9. 10. 11. 12.

Name of Dept.
MARKET REGULATION DEPARTMENT (MRD) CORPORATION FINANCE DEPARTMENT (CFD) INTEGRATED SURVEILLANCE DEPARTMENT (ISD) ENFORCEMENT OF DEPARTMENT (EFD)

13.
14. 15. 16.

ENQUIRIES & ADJUDICATION DEPARTMENT (EAD)

GENERAL SERVICES DEPARTMENT (GSD) OFFICE OF THE CHAIRMEN (OCH) THE REGIONAL OFFICES (ROs)
9

 The

Central Government has power to issue directions to SEBI Board, supersede the Board, if necessary and to call for returns and reports as and when necessary. The Central Government has also power to give any guideline or to make regulations and rules for SEBI and its operations. The activities of SEBI are financed by grants from Central Government, in addition to fees, charges etc. collected by SEBI. The fund called SEBI General Fund is set up, to which, all fees, charges and grants are credited. This fund is used to meet the expenses of the Board and to pay salary of staff and members of the body.
10