SEBI
SEBI
SEBI
PRESENTATION
ON
Presented to:
Ms. DIPALI PATEL
Presented by:
RONAK AKHANI(01)
JAYESH PATEL(32)
CHANDRAKANT PRAJAPATI (41)
INTRODUCTION
Formed: 12th April,1992
Established by: Government of India
Headquarters: Mumbai, Maharashtra
HISTORY
Initially SEBI was a non statutory body without any statutory
power.
However in 1995, the SEBI was given additional statutory power
ESTABLISHMENT OF SEBI
The security and exchange board of India was established
market.
ORGANIZATION STRUCTURE
SEBI is working as a corporate sector.
Its activities are divided into five departments. Each department is headed
by an executive director.
The head office of SEBI is in Mumbai and it has branch office in Kolkata,
secondary markets.
These committees consist of market players, investors associations and
eminent persons.
OBJECTIVES
The overall objectives of SEBI are to protect the interest of investors and to promote
the development of stock exchange and to regulate the activities of stock market. The
objectives of SEBI are:
1. To regulate the activities of stock exchange.
2. To protect the rights of investors and ensuring safety to their investment.
3. To prevent fraudulent and malpractices by having balance between self regulation
underwriters, etc.
Functions
The SEBI Act, 1992 has entrusted with two functions,
they are
Protective functions
Regulatory functions
Developmental functions
PROTECTIVE FUNCTIONS
It Checks Price Rigging
It Prohibits Insider trading
SEBI prohibits fraudulent and Unfair Trade
Practices
security market
REGULATORY FUNCTIONS
Regulation of stock exchange and self regulatory organizations.
Registration and regulation of stock brokers, sub brokers, Registrars to all
DEVELOPMENT FUNCTIONS
(I) SEBI promotes training of intermediaries of the securities market.
(ii) SEBI tries to promote activities of stock exchange by adopting
flexible and adoptable approach in following way:
(a) SEBI has permitted internet trading through registered stock brokers.
(b) SEBI has made underwriting optional to reduce the cost of issue.
(c) Even initial public offer of primary market is permitted through stock
exchange.
the interest of investors. It was set up to meet the needs of three groups.
1. Issuers:
For issuers it provides a market place in which they can raise finance fairly and easily.
2. Investors:
For investors it provides protection and supply of accurate and correct information.
3. Intermediaries:
POWERS
Power to call periodical returns from recognized stock exchanges.
Power to compel listing of securities by public companies.
Power to levy fees or other charges for carrying out the purposes of
regulation.
Power to call information or explanation from recognized stock
Cont
Power to control and regulate stock exchanges.
Power to direct enquiries to be made in relation to affairs of stock exchanges or
their members.
Power to make or amend bye-laws of recognized stock exchanges.
Power
to
grant
registration
to
market
intermediaries.
the Board, if necessary and to call for returns and reports as and when necessary.
The Central Government has also power to give any guideline or to make
regulations and rules for SEBI and its operations.
The activities of SEBI are financed by grants from Central Government, in addition
to fees, charges etc. collected by SEBI. The fund called SEBI General Fund is set
up, to which, all fees, charges and grants are credited. This fund is used to meet the
expenses of the Board and to pay salary of staff and members of the body.
Primary Market
Primary market of capital market plays a significant role
Secondary Market
Secondary market is a market where securities are traded
Mutual Fund
Its a type collective investment that pools money from
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