2. SEBI (Securities and Exchange Board of India)
is a centrally controlled body that is
entrusted with the task of protecting the
interest of investors in securities and
promoting the growth of securities market by
implementing suitable rules and norms.
It was officially established by The
Government of India in the year of 1992 with
SEBI Act 1992, being passed by the Indian
Parliament.
3. The office of SEBI is situated at SEBI
Bhavan, Bandra Kurla Complex, Bandra
East, Mumbai- 400051, with its regional
offices at Kolkata, Delhi, Chennai &
Ahmadabad.
SEBI was given additional statutory power by
the Government of India through an
amendment to the Securities and Exchange
Initially SEBI was a non statutory body
without any statutory power. However in the
year of 1995, the Board of India Act 1992. In
April, 1998 the SEBI was constituted as the
regulator of capital markets in India under a
resolution of the Government of India.
4. Regulating the business in stock exchanges
and any other securities market.
Registering and regulating the working of
intermediaries and player in the securities
market.
Registering and regulating the working of
collective investment schemes, e.g. –mutual
funds.
Prohibiting fraudulent activities in the
securities market.
Prohibiting insiders trading in securities.
Promoting investors education.
5. Primary Department
Issue Management and Intermediaries
Department
Secondary Market Department
Institutional Investment
Legal and Investigation Department
6. SEBI has regulated:
Primary Market
Secondary Market
Mutual Funds and
Foreign Institutional Investments
7. To protect the interest of the investors and
to bring back the small investors to the
market. Entry and disclosure norms are
tightened to prevent the exploitation of
investors by the unscrupulous promoters.
Entry norms
Promoters contribution
Disclosure
Book building
Allocation of shares
Market intermediaries
8. SEBI has introduced a wide range of reforms
in the secondary market. The important
areas are :
Governing board
Infrastructure
Settlement and clearing
Debt market
Price Stabilization
Delisting
Brokers
Insider trading
9. For the smooth conduct and regulation of the
mutual fund several guidelines have been
issued by SEBI regarding the
investment, disclosure, accountability
distribution of its profits to its member and
the asset management companies. SEBI has
issued regulation and code of conduct in
1993, that provide a basic legal frame work
for the functioning of the mutual fund.
