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Roles Functions Of: & Sebi

SEBI (Securities and Exchange Board of India) was established in 1988 and granted statutory powers in 1992 to protect investors and regulate the securities market. SEBI has regulatory and developmental functions, including registering market intermediaries, prohibiting unfair trade practices, promoting investor education, and oversight of stock exchanges. It has various departments and works closely with the Central Government, while maintaining independence in its operations. A recent case involved SEBI not clearing an open offer by Vedanta as required for its acquisition of Cairn India until government approvals were obtained.

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Jeffry Mahi
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38 views14 pages

Roles Functions Of: & Sebi

SEBI (Securities and Exchange Board of India) was established in 1988 and granted statutory powers in 1992 to protect investors and regulate the securities market. SEBI has regulatory and developmental functions, including registering market intermediaries, prohibiting unfair trade practices, promoting investor education, and oversight of stock exchanges. It has various departments and works closely with the Central Government, while maintaining independence in its operations. A recent case involved SEBI not clearing an open offer by Vedanta as required for its acquisition of Cairn India until government approvals were obtained.

Uploaded by

Jeffry Mahi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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ROLES & FUNCTIONS OF SEBI

2 C ONTENTS
• Establishment
• Organization’s Structure
• Current Board Members
• Objectives of SEBI
• Functions of SEBI
• Powers of SEBI
• Various Departments & their functions
• SEBI & Central Government
• Few Cases
3
ESTABLISHMENT
In 1988 the Securities and Exchange Board of India (SEBI)
was established by the Government of India through an
executive resolution, and was subsequently upgraded as a
fully autonomous body (a statutory Board) in the year 1992
with the passing of the Securities and Exchange Board of
India Act (SEBI Act) on 30th January 1992.
PREAMBLE
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”
ORGANIZATION ’S S TRUCTURE
4

Management of the Board


The Board shall consist of the following members, namely:-

a) a Chairman

b) Two members, One from amongst the officials of the


Ministry of the Central Government dealing with
Finance and second from administration of the
Companies Act, 1956.

c) One member from amongst the officials of the Reserve


Bank of India.

d) Five other members of whom at least three shall be the


whole-time members to be appointed by the central
Government .
5
O BJECTIVES
OF
SEBI
The primary objective of SEBI is to promote
healthy and orderly growth -of the
securities market and secure investor
protection. The objectives of SEBI are as
follows:
 To protect the interest of investors, so that, there is
a steady flow of savings into the capital market.
 To regulate the securities market and ensure fair
practices.
 To promote efficient services by brokers, merchant
bankers, and other intermediaries, so that, they
6 F UNCTIONS
OF
SEBI
The SEBI Act, 1992 has
entrusted with two functions,
they are
 Regulatory functions And
 Developmental functions
7 REGULATORY

F UNCTIONS
Regulation of stock exchange and self regulatory
organizations.
 Registration and regulation of stock brokers, sub-brokers,
Registrars to all issues, merchant bankers, underwriters,
portfolio managers etc.
 Registration and regulation of the working of collective
investment schemes including mutual funds.
 Prohibition of fraudulent and unfair trade
practices relating to securities market.
 Prohibition of insider trading
 Regulating substantial acquisition of shares and takeover
of companies.
DEVELOPMENTAL F UNCTIONS
8

 Promoting investor’s education


 Training of intermediaries
 Conducting research and publishing
information useful to all market participants.
 Promotion of fair practices
 Promotion of self regulatory organizations
P OWERSOF SEBI
9

 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 exchanges or their members.
 Power to grant approval to bye-laws of
recognized stock exchanges.
P OWERSOF SEBI CONTINUE ..
10

 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.
 Power to declare applicability of Section 17 of
the Securities Contract (Regulation) Act 1956, in
any State or area, to grant licenses to dealers in
securities.
VARIOUS DEPARTMENTS UNDER
11
SEBI
S. No.
Name of Dept.
1. MARKET INTERMEDIARIES REGULATION AND
SUPERVISION DEPARTMENT (MIRSD)
2. DERIVATIVES AND NEW PRODUCTS DEPARTMENT
(DNPD)
3. INVESTMENT MANAGEMENT DEPARTMENT (IMD)

4. INVESTIGATIONS DEPARTMENT (IVD)

5. LEGAL AFFAIRS DEPARTMENT (LAD)

6. OFFICE OF INVESTOR ASSISTANCE & EDUCATION


(OIAE)
7. DEPARTMENT OF ECONOMIC & POLICY ANALYSIS
(DEPA)
8. INFORMATION TECHNOLOGY DEPARTMENT (ITD)
VARIOUS DEPARTMENTS UNDER SEBI
12
CONTINUE …

S. No.
Name of Dept.
9. MARKET REGULATION DEPARTMENT (MRD)

10. CORPORATION FINANCE DEPARTMENT (CFD)

11. INTEGRATED SURVEILLANCE DEPARTMENT (ISD)

12. ENFORCEMENT OF DEPARTMENT (EFD)

13. ENQUIRIES & ADJUDICATION DEPARTMENT (EAD)

14. GENERAL SERVICES DEPARTMENT (GSD)

15. OFFICE OF THE CHAIRMEN (OCH)

16. THE REGIONAL OFFICES (RO’s)


13
SEBI & C ENTRAL

 G .
OVT has power to issue directions to
The Central Government
SEBI Board, supersede 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.
REGULATION
14

BY

SEBI:
SEBI has not yet cleared Vedanta group's open offer for Cairn

India, a mandatory requirement for conclusion of London-
based mining group's $9.6 billion acquisition to foray into oil
sector. R ECENT
 London-listed Vedanta had in August last year agreed to buy
up to 51 per cent stake in Cairn India from Cairn Energy.
C
Following the acquisition, its group ASES
firm Sesa Goa was to
make an open offer for buying an additional 20 per cent in
the company that owns India's largestISSUE
VEDANTA-CAIRN on land oil field.
 But the company could not make the open offer following an
oil ministry intervention with SEBI. The ministry said the
deal was contingent upon government approval, which is
still under process.
 SEBI is holding back the approval for the open offer as
the government is yet to give its go ahead.

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