All About Securities and Exchange Board of India

SEBI was established in the year 1988 and subsequently was given the constitutional validity on 30th January 1992 by Government of India by passing the SEBI Act, 1992 in the parliament of India.

                                                           Powers of SEBI

1. To regulate and approve by-laws of stock exchanges

2. Inspect the books of accounts of recognized stock exchanges and call for periodical returns

3. Inspect the books of financial Intermediaries.

4. Compel certain companies to get listed on one or more stock exchanges

5. To handle the registration of brokers

                                                       Role and Functions of SEBI

• Primary Markets: SEBI has regulated the primary market through

1. The regulation of issuers’ access to market
2. Regulation of information production at the time of issue
3. Regulation of processes and procedures relating to issuance of securities

• Disclosure: Disclosure standards are not limited to accounting information but was extended to other issue related communications such as advertisements.
• Corporate Governance: SEBI has made a constant effort to improve the standards of Corporate Governance in India.
• Settlement Systems
• Dematerialization of securities
• Institutionalization of Trading and ownership of securities
• Market Integrity and Insider Trading
• To help in developing the capital market so that the business activities doesn’t get hampered
• To bring companies and organizations under its regulation so that the interests of investors are not harmed
• To curtail unethical trading which includes insider trading also
• To get done the registration of Mutual Funds and Systematic Investment Plans(SIPs) and all such funds comply with laid down rules and regulations of Mutual funds and SIPs
• To impart training to market participants on regular basis

The SEBI has 7 board members with following structure.

♦The Chairman who is nominated by the Union Government of India.
♦Two members from the Union Finance Ministry
♦One member from the Reserve Bank of India
♦The remaining 5 members are nominated by the Union Government of India, out of them