FINANCIAL INSTITUTION & MARKET

PRATYUSH

SOURAMYA

BIDHAN

AUROBINDA

SIDDHANT

BY:-

CONTENTSIntroductionHistoryEstablishment of SEBIOrganization StructureObjectivesRoles & PowerFunctionsReviews of SEBISEBI role in Indian EconomyPreamble & Mission

SEBI

The Securities and Exchange Board Of India (SEBI) is the regulator for the securities market in India. It was formed officially by the government of India in 1992 with SEBI Act 1992 being passed by the Indian Parliament.

HISTORY: The Securities and Exchange

Board of India was established by the government of India on 12  April 1988 as an interim administrative body to  promote orderly and healthy growth of the securities market and for investor protection.

It was to function under the overall  administrative control of the Ministry of Finance of the GOI.

ESTABLISHMENT OF SEBI

The Securities and Exchange Board of India was established on April 12, 1992 in accordance with the provisions of the Securities and Exchange Board of India Act, 1992.

Organization Structure

The activities of SEBI have been divided into 5 operational departments.

Each department is headed by an Executive Director. 

Apart from its head office at Mumbai SEBI has regional offices in Kolkata, Chennai, Delhi to attend  to investor complaints and talk with the issuers, intermediaries and stock exchanges in the concerned  region. 

Shri U. K. SinhaChairman, SEBI,SEBI Bhavan, Bandra Kurla Complex,Bandra (E), Mumbai - 400051.

Shri Prashant SaranWhole-Time Member, SEBI,SEBI Bhavan, Bandra Kurla Complex,Bandra (E), Mumbai - 400051.

BOARD MEMBERS

Shri Rajeev Kumar AgarwalWhole-Time Member, SEBI,SEBI Bhavan, Bandra Kurla Complex,Bandra (E), Mumbai - 400051

Dr. Thomas MathewJoint Secretary (Capital Markets),Department of Economic Affairs,Ministry of FinanceNew Delhi

Shri V. K. Jairath194 B Kalpatru Horizon,S.K. Ahire Marg, Worli,Mumbai 400018

Shri Anand SinhaDeputy GovernorReserve Bank of India

Shri Naved MasoodSecretary,Ministry of Corporate Affairs

HEAD OFFICE OF SEBI

oIt is located in Mumbai. Plot No. – C4 – A, (G) Block, Bndra Kurla Complex, Bandra

( East ) Mumbai 400051 Tel - + 91- 22- 2644900 Email – sebi@sebi.gov.in

BRANCH OFFICES North – New Delhi & Chandigarh.

South – Chennai, Bengaluru, Hyderabad & Kochi. East – Kolkata, Guwahati, Bhubneshwar &

Patna. West - Ahemadabad, Jaipur & Indore.

Objectives Of SEBI :-

To protect the interest of

investors in securities.

To promote the

development of securities

market.

To regulate the securities

market.

SEBI is the primary governing body for

the securities market in India. All transactions in the security market in India are governed

& regulated by SEBI.

Roles &Power

Specifying rules and regulations.Providing license to dealers & brokers.

Controlling merging , acquisitions & take over.

Auditing the performance of stock exchanges.

Stopping fraudulent activities.Educating the investors.

Function of SEBISEBI is expected to regulate the business in stock

exchanges and any other securities market.

Registering and regulating the working of collective investment schemes, including mutual funds is a responsibility of SEBI.

SEBI is responsible for prohibiting fraudulent and unfair trade practices relating to securities markets.

Prohibiting insider trading in securities, with the imposition of monetary penalties, on erring market intermediaries.

Regulating substantial acquisition of shares and takeover of companies.

Continued …

Promoting investors education & training of intermediaries in securities market.

Prohibiting insiders trading in securities.

Regulating substantial acauisition of shares & take 0ver of companies.

Calling for information, undertaking inspection, conducting enquiries & audits of the stock exchanges, intermediaries & self – regulatory or organizations in the securities market.

REVIEW OF SEBIDisclosuresSettlementBadla TradeSpecial WatchSingle AuthorityStricker Registration of Brokers

CONTINUED . . .Disclosures : - SEBI enforces strict laws on

disclosures. SEBI checks and ensures to the Stock Exchange that weather all the companies have given their unaudited financial reports & balance sheets to the Stock Exchange or not.

Settlement : - SEBI takes care of the settlement. NSCCL (National Securities Clearing Corporation Limited) & it has the responsibility of settlement. It acts as buyer to every seller, and seller to every buyer, it deals with funds and securities pay in and pay out.

Continued . . . BADLA TRADE : - It is the transfer of trading from one person to another. If one person does’nt have Funds/ Securities, he can ask any other person to trade on behalf of him and he pays the person later.

Special watch : - SEBI has a special watch on huge investoes like banks, companies and foreign investors so that transparency between all the companies & investors is maintained.

CONTINUED . . . SINGLE AUTHORITY : - SEBI is the

single authority, it is the regulating authority in market, i.e. no other authority can supervise over it. It makes rules, laws for the different market’s that it looks after.

STRICKER REGISTRATION OF BROKER : - The brokers needs to be registered with SEBI and clear the certification modules in order to be eligible to trade as a broker, if not, strict action is taken against the brokers, he could also be suspended.

ROLE OF SEBI IN INDIAN ECONOMY SEBI is the primary governing / regulating body for the securities market in India. All transactions in the securities market in India are governed, looked after & regulated by SEBI.

PREAMBLEThe 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"

Mission of SEBISecurities & Exchange Board of India (SEBI)

formed under the SEBI Act, 1992 with the prime objective of ◦Protecting the interests of investors in securities,◦Promoting the development of, and ◦Regulating, the securities market and for

matters connected therewith or incidental thereto.’

NOTE:

Focus being the greater investor protection, SEBI has become a

vigilant watchdog.

THANK YOU

Queries Are Welcome !!!

Queries are Welcome !!!