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Role & Functions of SEBI

SEBI is the apex regulator of capital markets in India. It was established in 1988 and became a statutory body in 1992 with its headquarters in Mumbai. SEBI has four main functions - promotional, registration, regulatory, and control. It promotes the development of securities markets, registers various market participants, regulates market activities, and controls fraudulent behavior. SEBI is responsible for protecting investors and ensuring orderly development of the securities market. Its powers include quasi-legislative, quasi-executive, and quasi-judicial functions, with appeals possible through the Securities Appellate Tribunal and Supreme Court.

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61 views15 pages

Role & Functions of SEBI

SEBI is the apex regulator of capital markets in India. It was established in 1988 and became a statutory body in 1992 with its headquarters in Mumbai. SEBI has four main functions - promotional, registration, regulatory, and control. It promotes the development of securities markets, registers various market participants, regulates market activities, and controls fraudulent behavior. SEBI is responsible for protecting investors and ensuring orderly development of the securities market. Its powers include quasi-legislative, quasi-executive, and quasi-judicial functions, with appeals possible through the Securities Appellate Tribunal and Supreme Court.

Uploaded by

abhinavjog
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Session on SEBI

BACKGROUND & FUNCTIONS


SEBI

Apex regulator of all entities that either raise funds


in the capital markets or invest in capital market
securities
Earlier controller of capital issues was the regulator
Set up in 1988
Became a statutory body in 1992
Headquarters at Mumbai and has four offices
SEBI

Board commenced working w.e.f 30th January,


1992 by an Act of Parliament

Consolidates its powers form various acts

Principal regulating, controlling administrative and


promotional body in all matters of capital markets
Constitution

Is composed of following members


A chairman
Two members form the Ministry of Finance and Ministry
dealing with Companies Act, 1956
One member who is an official of RBI
Five other members to be appointed by the Central
Government of which three of them should be whole time
members
Functions

Various types of functions of SEBI:


Promotional role
Registration role
Regulatory role
Control role
Miscellaneous role
Promotional Role

Promoting the development and regulate the securities


market
Promoting and regulating self regulatory organisations
Promoting investor education and training of intermediaries
of securities markets
Conducting Research
Registration role

Registering and regulating various players associated with


securities markets
Registering and regulating the working of depositories,
depository participants, FIIs, credit rating agencies, etc
Registering and regulating the working of venture capital
funds and collective investment schemes, including MFs
Regulatory role

Regulate business of SE/MF


Regulate substantial acquisition of shares and take over of
companies
Issue directives for orderly development of securities market
and orderly conduct of intermediaries
Regulate and prohibit issue of offer documents prospective
or conditions for it
Specify listing and transfer of securities
Regulate functions of Mutual Funds, organisation of
collective investment schemes
Control role

Prohibit fraudulent and unfair practice


Prohibit insider trading
Call for information from banks, other authority or board /
corporation constituted by / under any Central / State or
Provincial Act.
In the interest of investor may restrain any person from
accessing security market, suspend trading in Stock
Exchange
Cause investigation to be conducted of there is a violation of
rules & regulations
Miscellaneous role

Perform such other functions and exercise other powers as


may be delegated to the Board by central Govt
Call for / supply information to any agency in efficient
discharge of its functions
Impound and retain proceeds and documents of any
transaction under investigation
Attach bank accounts
Direct any intermediary or other person not to dispose of or
alienate an asset under investigation
Miscellaneous role

Adjudicate and penalise persons, and intermediaries


connected with market on various issues
The Board may do all activities as directed by the Central
Government and such activities may touch issued which are
covered by other Acts like companies Act, etc
Responsibilities

Sebi has to be responsive to the needs of three


market participants
The issuer of securities
The investors
The market intermediaries
Powers

Quasi-legislative: drafts regulations


Quasi-executive: conducts investigation &
enforcement action
Quasi-judicial : passes rulings & orders
Appeal

While SEBI is powerful, an appeal mechanism also


exists through

Securities Appellate Tribunal


Supreme Court
THANK YOU

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