SEBI
Introduction:
The Securities and Exchange Board of India (frequently abbreviated SEBI) is the regulator for the
securities market in India. It was established in the year 1988 and given statutory powers on 12 April
1992 through the SEBI Act, 1992. 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".
Objectives:
Upendra Kumar Sinha was appointed chairman on 18 February 2011 replacing C. B. Bhave.[3]
Th e Board comprises[4]
Name
Designation
Upendra Kumar Sinha
Chairman
Prashant Saran
Whole Time Member
Rajeev Kumar Agarwal
Whole Time Member
S Raman
Whole Time Member
Prakash Chandra
Joint Secretary, Ministry of Finance
V. K. Jairath magya
Member Appointed
Anand Sinha
Deputy Governor, Reserve Bank of India
Naved Masood
Secretary, Ministry of Corporate Affairs
Raje Kumar
Part Time Member
List of former Chairmen:[5]
Name
From
To
C. B. Bhave
18 February 2008
18 February 2011
M. Damodaran
18 February 2005
18 February 2008
G. N. Bajpai
20 February 2002
18 February 2005
D. R. Mehta
21 February 1995
20 February 2002
S. S. Nadkarni
17 January 1994
31 January 1995
G. V. Ramakrishna
24 August 1990
17 January 1994
Dr. S. A. Dave
12 April 1988
23 August 1990
Limitation:
1. Government interference - rules and regulations framed by SEBI need approval
by government and thus it leads to delay in passing rules and regulations.
2. Interest of small investors is hampered - SEBI is not successful in protecting the
interest of small investors and thus badly affects the confidence of small investors.
3. Failed to check speculation - SEBI has very little control over forward and option
trading. As a result,there are fluctuations in the share market.
Body:
SEBI has to be responsive to the needs of three groups, which constitute the market:
the issuers of securities
the investors
the market intermediaries.
SEBI has three functions rolled into one body: quasi-legislative, quasi-judicial and quasi-executive. It
drafts regulations in its legislative capacity, it conducts investigation and enforcement action in its
executive function and it passes rulings and orders in its judicial capacity. Though this makes it very
powerful, there is an appeal process to create accountability.
Powers[edit]
For the discharge of its functions efficiently, SEBI has been vested with the following powers:
1. to approve bylaws of stock exchanges.sebi
2. to require the stock exchange to amend their bylaws.
3. inspect the books of accounts and call for periodical returns from recognized stock
exchanges.
4. inspect the books of accounts of a financial intermediaries.
5. compel certain companies to list their shares in one or more stock exchanges.
6. registration brokers.
SEBI has enjoyed success as a regulator by pushing systematic reforms aggressively and
successively. SEBI has been active in setting up the regulations as required under law. SEBI did
away with physical certificates that were prone to postal delays, theft and forgery, apart from making
the settlement process slow and cumbersome by passing Depositories Act, 1996. SEBI has also
been instrumental in taking quick and effective steps in light of the global meltdown and the Satyam
fiasco. In one such move, SEBI has increased the application limit for retail investors to Rs 2 lakh,
from Rs 1 lakh at present.
In conculsion to protect the interests of investors in securities and to promote the development
SEBI has made 8 different types of committees which:-
SEBI Committees[edit]
1. Technical Advisory Committee
2. Committee for review of structure of market infrastructure institutions
3. Members of the Advisory Committee for the SEBI Investor Protection and Education Fund
4. Takeover Regulations Advisory Committee
5. Primary Market Advisory Committee (PMAC)
6. Secondary Market Advisory Committee (SMAC)
7. Mutual Fund Advisory Committee
8. Corporate Bonds & Securitization Advisory Committee
