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    The Securities and Exchange Board of India: Objectives

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    Avinash Hariramani
    The Securities and Exchange Board of India (SEBI) is the capital market regulator in India. It was established in 1988 through an act of Parliament to protect investors, regulate securities markets, and promote their development. SEBI regulates stock exchanges, registers various market intermediaries like brokers and investment advisors, prohibits unfair trade practices, and oversees substantial acquisitions, mergers and takeovers. It has powers to seek documents, summon individuals, inspect records, impose penalties up to 25 crores, search and seize documents, and freeze bank accounts. Appeals against SEBI decisions can be made to the Securities Appellate Tribunal and High Courts.

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    The Securities and Exchange Board of India: Objectives

    Uploaded by

    Avinash Hariramani
    31 views5 pages
    The Securities and Exchange Board of India (SEBI) is the capital market regulator in India. It was established in 1988 through an act of Parliament to protect investors, regulate securities markets, and promote their development. SEBI regulates stock exchanges, registers various market intermediaries like brokers and investment advisors, prohibits unfair trade practices, and oversees substantial acquisitions, mergers and takeovers. It has powers to seek documents, summon individuals, inspect records, impose penalties up to 25 crores, search and seize documents, and freeze bank accounts. Appeals against SEBI decisions can be made to the Securities Appellate Tribunal and High Courts.

    Original Description:

    ROLE OF SEBI IN REGULATION OF BUSINESS AND ETHICS

    Original Title

    Role of SEBI

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    The Securities and Exchange Board of India (SEBI) is the capital market regulator in India. It was established in 1988 through an act of Parliament to protect investors, regulate securities markets, and promote their development. SEBI regulates stock exchanges, registers various market intermediaries like brokers and investment advisors, prohibits unfair trade practices, and oversees substantial acquisitions, mergers and takeovers. It has powers to seek documents, summon individuals, inspect records, impose penalties up to 25 crores, search and seize documents, and freeze bank accounts. Appeals against SEBI decisions can be made to the Securities Appellate Tribunal and High Courts.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    31 views5 pages

    The Securities and Exchange Board of India: Objectives

    Uploaded by

    Avinash Hariramani
    The Securities and Exchange Board of India (SEBI) is the capital market regulator in India. It was established in 1988 through an act of Parliament to protect investors, regulate securities markets, and promote their development. SEBI regulates stock exchanges, registers various market intermediaries like brokers and investment advisors, prohibits unfair trade practices, and oversees substantial acquisitions, mergers and takeovers. It has powers to seek documents, summon individuals, inspect records, impose penalties up to 25 crores, search and seize documents, and freeze bank accounts. Appeals against SEBI decisions can be made to the Securities Appellate Tribunal and High Courts.

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    The Securities and Exchange

    Board of India
    ( The Indian Capital Market Regulator)

    The SEBI came into by an act of Parliament


    to:

    Objectives:
    To Protect the interests of investors in
    securities
    To Promote the development of and to
    regulate the securities market

    Functions of the SEBI Board:


    a. Regulating the business in stock
    exchanges and any other securities
    market
    b. Registering and regulating the
    working of stock brokers, sub-brokers,
    share transfer agents, bankers to the
    issue, trustees of trust deeds, registrars
    to an issue, merchant bankers,
    underwriters, portfolio managers,
    investment advisers and such other
    intermediaries who may be associated
    with securities markets in any manner.
    c.Registering and regulating the working
    of depositories, participants, custodians
    of securities, foreign institutional
    investors, credit rating agencies
    d. Registering and regulating the
    working of venture capital funds and
    collective investment schemes including
    mutual funds
    e. Prohibiting fraudulent and unfair
    trade practices relating to securities
    markets
    f. Providing insider trading in securities
    g. Regulating substantial acquisition of
    share and take over of companies
    h. Calling for information from,
    undertaking inspection, conducting
    inquiries and audits of the stick
    exchanges, mutual funds and other
    persons associated with the securities
    markets
    i. Levying fees and other charges

    Powers of the Board: ( SEBI Board):


    The board is entrusted with the same
    powers as are vested in a civil court in
    respect of the following matters:
    1. To seek production of books of
    account and other documents at such
    place and such time as may be
    specified by the board.
    2. Summoning and enforcing the
    attendance of person and examining
    them on oath
    3. Inspection of any books, registers
    and other documents of stockbrokers,
    sub- brokers and share transfer agents,
    etc.

    Establishment of Securities Appellate


    Tribunals:
    Under the SEBI Act, the Central government
    shall by notification, establish one or more
    Appellate Tribunals to hear appeals.
    However, appeals against the decision of
    Securities Appellate Tribunal can be
    preferred before a High Court.

    Strengthening of SEBI:
    In January 1995 & 2002, The Central
    government promulgated an Ordinance to
    amend the SEBI, Act 1992.
    SEBI can impose monetary penalties on
    capital market intermediaries and other
    participants for a listed range of violations
    upto 25 crores or three times the profits of
    the entity for violations.
    Search and Seize documents: Armed
    with a search warrant from a judicial
    magistrate, can conduct search operations
    of the entitys premises and even seize
    documents.
    Freeze Bank Accounts: Armed with
    authorisation from judicial magistrate, can
    freeze bank accounts of the entity.
    More Board Strength: The strength of the
    SEBIs board has been increased from six to
    nine of which three ( excluding Chairman)
    will have to be full time directors.

    Primary Market Reforms:


    1. Relating to new issues: Companies
    issuing capital in the primary market are
    required to disclose all material facts and
    specific risk factors regarding the
    projects.
    2. Freedom to fix Par value of shares
    3. Relating to IPOs: the issuer has to
    disclose the price, the issue size and the
    number of securities to be offered to the
    public.
    For other details please go through page
    446 to 450 of text book.

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