Submitted to:

Submitted by:

SEBI Bhavan, Mumbai

Headquarters of SEBI

Contents

Introduction.
SEBI.
History.
Reason for Establishing.
Purpose and Role of SEBI.
Objectives of SEBI.
Functions of SEBI.
Responsibilities of SEBI.
Power of SEBI.
The Organisational Structure of SEBI.
Board of Members.
Role of SEBI-Primary Market.
Secondary Market and SEBI.
Mutual Fund and SEBI.

INTRODUCTION
Formed
Jurisdiction

: 12 April, 1992
: Government of

India
Headquarters: Mumbai,
Maharashtra
Website
: www.sebi.gov.in

SEBI
The regulatory body for

the investment market in

India. The purpose of this
board is to maintain stable
and efficient markets by
creating and enforcing
regulations in the
marketplace.

HISTORY
Initially, SEBI was a non statutory

body without any statutory power.

However in 1995, the SEBI was
additional statutory power by the
Government of India through an
amendment to the Securities and
Exchange Board of India Act 1992.
In April, 1998 the SEBI was
constituted as the regulator of
capital market in India.

 With

the growth in the dealings of stock markets,

lot of malpractices also started in stock markets
such as price rigging, unofficial premium on
new issue, and delay in delivery of shares,
violation of rules and regulations of stock
exchange and listing requirements. Due to these
malpractices the customers started losing
confidence and faith in the stock exchange. So
government of India decided to set up an agency
or regulatory body known as Securities Exchange
Board of India (SEBI)
Reasons for Establishment

Purpose and Role of SEBI:

It was set up to meet the needs of
three groups.
Issuers:
For issuers it provides a market
place in
which they can raise finance fairly
and

Purpose and Role of SEBI:

Investors:
For investors it provides
protection and supply of accurate
and correct information.
Intermediaries:
For intermediaries it provides a
competitive professional market.

OBJECTIVE of SEBI:
1. To advise SEBI to regulate
intermediaries.
2. To advise SEBI on issue of securities in
primary market.
3. To advise SEBI on disclosure
requirements of companies.
4. To advise for changes in legal
framework and to make stock exchange
more transparent.

FUNCTION of SEBI
i. Protective functions
ii. Developmental
functions
iii. Regulatory functions.

FUNCTION of SEBI
1. Protective Functions:
To protect the interest of investor and
provide safety of investment.
It Checks Price Rigging.
It Prohibits Insider trading.
SEBI prohibits fraudulent and Unfair Trade
Practices.
To educate investors.
Promotes fair practices and code of

FUNCTION of SEBI
2. Developmental Functions:
To promote and develop activities in stock
exchange and increase the business in
stock exchange.
SEBI promotes training of intermediaries
of the securities market.
SEBI tries to promote activities of stock
exchange by adopting flexible and
adoptable approach.

FUNCTION of SEBI
3. Regulatory Functions:
To regulate the business in stock exchange.
Framed rules and regulations and a code of
conduct to regulate the intermediaries
Registers and Regulates the working of all
those who are associated with stock
exchange in any manner.
Registers and Regulates the working of
mutual funds etc.
Regulates takeover of the companies.

RESPONSIBILITIES of SEBI
SEBI has to be responsive to the
needs of the needs of three groups,
which constitute the market:
The issuers of securities.
The investors.
The market intermediaries.

POWER of SEBI

1. Powers relating to stock

exchanges & intermediaries
2. Power to impose monetary
penalties
3. Power to initiate actions in
functions assigned
4. Power to regulate insider
trading.
5. Powers under Securities
Contracts Act
6. Power to regulate business

Organisational
1.The
SEBI
is workingStructure
as a corporate sector.
of SEBI:
2. Its activities are divided into five
department headed by an executive
director.
3. The head office of SEBI is in Mumbai
and it has branch office in Kolkata,
Chennai and Delhi.
4. SEBI has formed two advisory
committees to deal with primary and

BOARD
MEMBERS
The board
comprises of :
Mr. CB Bhave

- Chairman , SEBI

Mr. KP Krishnan

- Joint secretary,
ministry of

finance
Mr. Anurag goel
affairs
Dr. G Mohan Gopal

- Secretary, ministry
of corporate
-Director, national
judicial academy,

role of sebi - primary market

To protect the interest of the investors and
to bring back the small investors to the
market. Entry and disclosure norms are
tightened to prevent the exploitation of
investors by the unscrupulous promoters.
Entry norms
Promoters contribution
Disclosure
Book building
Allocation of shares
Market intermediaries

Secondary market and sebi

SEBI has introduced a wide range of reforms
in the secondary market. The important
areas are :

Governing board
Infrastructure
Settlement and clearing
Debt market
Price Stabilization
Delisting
Brokers
Insider trading

Mutual funds and sebi

For the smooth conduct and
regulation of the mutual fund several
guidelines have been issued by SEBI
regarding the investment, disclosure,
accountability distribution of its
profits to its member and the asset
management companies. SEBI has
issued regulation and code of
conduct in 1993, that provide a basic
legal frame work for the functioning