Sebi

 SEBI – ROLE AND FUNCTIONS K.K.Jindal
 Why do we need a regulatory body for Investor protection in India?
o India is an ` informationally ' weak market
o Boosting capital market demands restoring the confidence of lay investors who
have been beaten down by repeated scams
o Progressively softening interest rates and an under performing economy have
eroded investment options, and require enhanced investing skills.
 Mission of SEBI
o Securities & Exchange Board of India (SEBI) formed under the SEBI Act, 1992
with the prime objective of
 Protecting the interests of investors in securities,
 Promoting the development of, and
 Regulating, the securities market and for matters connected therewith or
incidental thereto.’
o Focus being the greater investor protection, SEBI has become a vigilant watchdog

 FUNCTIONS OF SEBI
o Section 11 of the Securities and Exchange Board of India Act.
o Regulation Of Business In The Stock Exchanges
o A review of the market operations, organizational structure and administrative
control of the exchange
 All stock exchanges are required to be Body Corporates
 The exchange provides a fair, equitable and growing market to investors.
 The exchange’s organisation, systems and practices are in accordance with
the Securities Contracts (Regulation) Act (SC(R) Act), 1956
o B) Registration And Regulation Of The Working Of Intermediaries
o regulates the working of the depositories [participants], custodians of securities,
foreign institutional investors, credit rating agencies and such other intermediaries
Portfolio Managers Sub- Brokers Underwriters Stock brokers Merchant Bankers
Secondary Market Primary Market
o C) Registration And Regulation Of Mutual Funds, Venture Capital Funds &
Collective Investment Schemes
 AMFI-Self Regulatory Organization-'promoting and protecting the interest
of mutual funds and their unit-holders, increasing public awareness of
mutual funds, and serving the investors' interest by defining and
maintaining high ethical and professional standards in the mutual funds
industry'.
 Every mutual fund must be registered with SEBI and registration is
granted only where SEBI is satisfied with the background of the fund.
 SEBI has the authority to inspect the books of accounts, records and
documents of a mutual fund, its trustees, AMC and custodian where it
deems it necessary


o SEBI (Mutual Funds) Regulations, 1996 lays down the provisions for the
appointment of the trustees and their obligations
o Every new scheme launched by a mutual fund needs to be filed with SEBI and
SEBI reviews the document in regard to the disclosures contained in such
documents.
o Regulations have been laid down regarding listing of funds, refund procedures,
transfer procedures, disclosures, guaranteeing returns etc
o SEBI has also laid down advertisement code to be followed by a mutual fund in
making any publicity regarding a scheme and its performance
o SEBI has prescribed norms / restrictions for investment management with a view
to minimize / reduce undue investment risks.
o SEBI also has the authority to initiate penal actions against an erring MF.
o In case of a change in the controlling interest of an asset management company,
investors should be given at least 30 days time to exercise their exit option.
o D) Promoting & Regulating Self Regulatory Organizations
 In order for the SRO to effectively execute its responsibilities, it would be
required to be structured, organized, managed and controlled such that it
retains its independence, while continuing to perform a genuine market
development role
o E) Prohibiting Fraudulent And Unfair Trade Practices In The Securities Market
 SEBI is vested with powers to take action against these practices relating
to securities market manipulation and misleading statements to induce
sale/purchase of securities.
o F] Prohibition Of Insider Trading
 Stock Watch System, which has been put in place, surveillance over
insider trading would be further strengthened .
o G] Investor Education And The Training Of Intermediaries
 SEBI distributed the booklet titled “A Quick Reference Guide for
Investors” to the investors
 SEBI also issued a series of advertisement /public notices in national as
well as regional newspapers to educate and caution the investors about the
risks associated with the investments in collective investment schemes
 SEBI has also issued messages in the interest of investors on National
Channel and Regional Stations on Doordarshan .
o H) Inspection And Inquiries
o I) Regulating Substantial Acquisition Of Shares And Take-overs
o J) Performing Such Functions And Exercising Such Powers Under The Provisions
Of The Securities Contracts (Regulation) Act, 1956 As May Be Delegated To It
By The Central Government;
o K) Levying Fees Or Other Charges For Carrying Out The Purposes Of This
Section
o L) Conducting Research For The Above Purposes

 VETTING BY SEBI
o A company cannot come out with public issue unless Draft Prospectus is filed
with SEBI. Prospectus is a document by way of which the investor gets all the
information pertaining to the company in which they are going to invest. It gives
the detailed information about the Company, Promoter / Directors, group
companies, Capital Structure, Terms of the present issue etc.
o A company cannot file prospectus directly with SEBI. It has to be filed through a
merchant banker. After the preparation of prospectus, the merchant banker along
with the due diligence certificates and other compliances and sends the same to
SEBI for Vetting.
o SEBI on receiving the same scrutinizes it and may suggest changes within 21
days of receipt of prospectus
o The company can come out with a public issue any time within 180 days from the
date of the letter from SEBI or if no letter is received from SEBI, within 180 days
from the date of expiry of 21 days of submission of prospectus with SEBI
o If the issue size is upto Rs. 20 crores then the merchant bankers are required to
file prospectus with the regional office of SEBI falling under the jurisdiction in
which registered office of the company is situated.
o If the issue size is more than Rs. 20 crores, merchant bankers are required to file
prospectus at SEBI, Mumbai office.
 Broker’s Code
o The four-part model, which was recommended by the M R Mayya committee
o The market regulator would hold the remote control on the management of the
exchanges by approving nominations of 60 per cent non-broker members of an
exchange board.
o Induction and removal of managing director would also be controlled by SEBI.
o Lead to increased control by the markets regulator and also impose restrictions on
elected brokers without giving them any authority.
 Search And Seizure
o To impose penalties of up to Rs 25 crore or three times the amount involved in the
violation of a norm, whichever is higher.
o In the cases of some offences, including defaults by brokers, a failure to furnish
returns and information by corporates and brokers and other lapses, the market
regulator can impose a higher penalty of Rs 1 lakhs a day or a maximum fine of
Rs 1 crore, whichever is lower.
o At present, the offences carry penalties ranging between Rs 5,000 and Rs 5 lakhs.
 Corporate Governance
o The listing requirements, are ensured in two ways.
o Corporates are expected to submit compliance reports as per clause 49 of the
listing agreement
o They are also required to provide details of the same in their annual reports .
 Delisting
o The exit price to be determined in accordance with the book building process
(known as reverse book building) through an electronically-linked transparent
facility.

o The offer price shall have a floor price, which will be the average of 26 weeks
traded price preceding the date of the public announcement. The final offer price
shall be determined as the price at which maximum number of shares has been
offered.
o After the final price is determined based on the book-building process, the
promoter or the acquirer will have to make a public announcement of the final
price and communicate to the exchanges from which the delisting is sought to be
made within two working days.
o Further, the number of bidding centres shall not be less than 30, including all the
stock exchange centres, which should have at least one electronically-linked
computer terminal each.
o In case the promoter does not accept the above price, he should not make an
application to the exchange for delisting of the securities, as per the guidelines.
Instead, he shall ensure that the public shareholding is brought up to the minimum
limits specified under the listing conditions within six months.
o Strict norms for compulsory delisting by stock exchanges
 Public Issues
o An unlisted company has to satisfy the following criteria to be eligible to make a
public issue
o Pre-issue networth of the co. should not be less than Rs.1 crore in last 3 out of last
5 years with minimum networth to be met during immediately preceding 2 years
o Track record of distributable profits for at least three (3) out of immediately
preceding five (5) years
o The issue size (i.e. offer through offer document + firm allotment + promoters’
contribution through the offer document) shall not exceed five (5) times its pre-issue
networth.
o In case an unlisted company does not satisfy any of the above criterions, it can
come out with a public issue only through the Book-Building process. In the Book
Building process the company has to compulsorily allot at least sixty percent
(50%) of the issue size to the Qualified Institutional Buyers (QIB’s), failing which
the full subscription monies shall be refunded .
 Initial Public Offer
o In case of an Initial Public Offer (IPO) i.e. public issue by unlisted company, the
promoters have to necessarily offer at least 20% of the post issue capital.
o In case of public issues by listed companies, the promoters shall participate either
to the extent of 20% of the proposed issue or ensure post-issue share holding to
the extent of 20% of the post-issue capital.
o In case of any issue of capital to the public the minimum contribution of
promoters shall be locked in for a period of 3 years, both for an IPO and Public
Issue by listed companies.
o In case of an IPO, if the promoters’ contribution in the proposed issue exceeds the
required minimum contribution, such excess contribution shall also be locked in
for a period of one year.
o In case of a public issue by a listed company, participation by promoters in the
proposed public issue in excess of the required minimum percentage shall also be

locked-in for a period of one year as per the lock-in provisions as specified in
Guidelines on Preferential issue.
 Initial Public Offer
o paid up share capital prior to IPO and shares issued on a firm allotment basis
along with issue shall be locked-in for a period of one year from the date of
allotment in public issue.
o In case of over-subscription in a fixed price issue the allotment is done in
marketable lots, on a proportionate basis
o In case of a book building issue, allotment to Qualified Institutional Buyers and
Non-Institutional buyers are done on a discretionary basis. Allotment to retail
investors is done on a proportionate basis
o all steps for completion of the necessary formalities for listing and
commencement of trading at all stock exchanges where the securities are to be
listed are taken within 7 working days of finalization of basis of allotment.
 RECOMMENDATIONS ON CORPORATE GOVERNANCE
o If an institution wishes to appoint a director on the board of a company, it should
be approved by the shareholders of the company. Such a person is not to be
considered an independent director.
o An institutional director, so appointed, shall have the same responsibilities and
shall be subject to the same liabilities as any other director.
o companies should lay down a code of conduct for all the board members and the
senior management of company.
o Mandatory review by audit committees of listed companies
o Companies raising money through a public issue should disclose to the audit
committee, the uses and applications of funds by major category on a quarterly
basis.
 Evaluation Of SEBI’ s Performance
o Enhancing disclosures
o In most case only the minimum information required under the Companies Act is
made available
o The manner in which the swap ratio is fixed and what the management thinks of
the same is largely taken for granted.
o valuation reports are made available for inspection, but access is not easy for all
investors.
 Inability To Utilize The Existing Powers Effectively
o SEBI could initiate prosecution proceedings on insider trading only in one case
and seven cases on fraudulent and unfair practices.
o Only in seven of the 181 cases, SEBI resorted to cancellation of registration
during the last four years.
o Though SEBI has the power to impose a penalty of Rs 1.50 lakhs every time a
person fails to furnish the requisite information, but rarely has this power has been
exercised by it .
o The provision for mandatory punishment of imprisonment in addition to award
for penalty has scarcely has been used.
 Quality Of Decisions

o What is worrying is the poor rate of conviction in major cases. Virtually every
SEBI decision involving major cases — such as Sterlite, BPL, Videocon, Anand
Rathi and Associates and Hindustan Lever — has been overturned by the appeals
process (or the Securities Appellate Tribunal).
o Accounting, audit quality
o The plethora of inter-corporate investments, intra-company and intra-group
transactions, guarantees and contingent liabilities are areas where there is room
for considerable concern.
 Price Manipulation — No Dent :
o Price manipulation, informed trading and insider trading with key
operators/investors is now routine. This is an area that is difficult to tackle for any
regulator. But over the last ten years, SEBI has taken action on such price
manipulation in just two cases (Bayer ABS and Amara Raja Batteries). Here, too,
the penal action has hardly been stringent
o Enticing ads and investor risk
o Advertisement sans indication of performance by mutual funds has continued
regardless of the SEBI guidelines on this.
o The Securities and Exchange Board of India (Sebi) is being blamed for lack of
alertness and poor risk-management measures with regard to the automated
lending and borrowing mechanism.
 Failures
 Change In Market
o The complete transformation of the trading, clearing and settlement infrastructure
o Dramatic transformation to a paperless market and transparent trading system. All
trades on the National Stock Exchange are settled in demat (paperless mode).
o By also moving towards rolling settlement (albeit after a considerable and
unnecessary delay), cutting the settlement cycle and now going forward towards a
T+1 settlement system, SEBI has made the markets much safer for investors
 Takeover Code Failures
o The SEBI has not been given the sweeping powers to directly tackle the
wrongdoers (many of whom have surfaced during the five-year timeframe when
the committee was deliberating on the issue) on the takeover front.
o The creeping acquisition limit will be applicable for the financial year, against the
earlier practice where a company couldn't exceed the creeping acquisition limit in
any one-year time frame.
o SEBI has almost always been found lacking in the legal foundations of its action
against defaulting corporates.
 THANK YOU!!!
 Securities and Exchange Board of India A CRITICAL ANALYSIS
 Flow of Presentation • A Brief History • Introduction • SEBI - Preamble • Objectives •
Functions • Contributions • Summary MET-IOM SEBI- A Critical Analysis 2
 A Brief History Prior to SEBI the security markets and stock exchange were regulated by
several Acts, which were: • The Bombay Securities Contracts Control Act, 1925 • The
Capital Issues (Control) Act, 1947 • The Securities Contracts (Regulation) Act, 1956 •
Registrar of Companies (The Indian Companies Act, 1956) For a healthy growth of
capital markets and to prevent malpractices in trading, the Government subsequently

decided to “set up a separate board for the regulation and orderly functioning of Stock
Exchange and the securities industry” MET-IOM SEBI- A Critical Analysis 3
 A Brief History (Contd…) • In July 1987, the Cabinet Committee on Economic Affairs
approved the broad features of SEBI and process of establishment of SEBI was
commenced • The statement of Purpose and Approach outlined twin objectives of SEBI
as, - promoting healthy and orderly development of securities markets and - ensuring
adequate investor protection and emphasized the developmental philosophy with which
SEBI would operate MET-IOM SEBI- A Critical Analysis 4
 Introduction • SEBI was established as a statutory authority through an Ordinance
promulgated on 30.01.1992 by the President of India • SEBI is the regulator for the
Securities Market in India • It is managed by a Board comprising of nine members
including the chairman • Paradoxically this is a positive outcome of the Harshad Mehta
Securities Scam of 1990-91 MET-IOM SEBI- A Critical Analysis 5
 SEBI - 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"
MET-IOM SEBI- A Critical Analysis 6
 Purpose and Role of SEBI • SEBI was set up with the main purpose of keeping a check
on malpractices and protect the interest of investors. It was set up to meet the needs of
three groups • Issuers: • For issuers it provides a market place in which they can raise
finance fairly and easily • Investors: • For investors it provides protection and supply of
accurate and correct information • Intermediaries: • For intermediaries it provides a
competitive professional market MET-IOM SEBI- A Critical Analysis 7
 Basic Objectives • To protect the interests of investors in securities • To promote the
development of Securities Market • To regulate the securities market and • For matters
connected therewith or incidental thereto MET-IOM SEBI- A Critical Analysis 8
 Powers of SEBI • Powers relating to stock exchanges and intermediaries: • SEBI has
wide powers regarding the stock exchanges and intermediaries dealing in securities • It
can ask information from the stock exchanges and intermediaries regarding their business
transactions for inspection/scrutiny and other purposes MET-IOM SEBI- A Critical
Analysis 9
 Powers of SEBI (Contd…) • Powers relating to monetary penalties: • SEBI’ has been
empowered to impose monetary penalties on capital market intermediaries and other
participants for a range of violations • It can even impose suspension of their registration
for a short period MET-IOM SEBI- A Critical Analysis 10
 Powers of SEBI (Contd…) • Powers to initiate actions relating to functions assigned: •
SEBI has a power to initiate actions in regard to functions assigned • For example, it can
issue guidelines to different intermediaries or can introduce specific rules for the
protection of interests of investors MET-IOM SEBI- A Critical Analysis 11
 Powers of SEBI (Contd…) • Powers under Securities Contracts (Regulation) Act : • For
effective regulation of stock exchanges, the Ministry of Finance issued a Notification on
13 September, 1994 delegating several of its powers under the Securities Contracts
(Regulation) Act to SEBI • SEBI is also empowered by the Finance Ministry to nominate
three members on the Governing Body of every stock exchange instead of earlier practice
of government making such nominations MET-IOM SEBI- A Critical Analysis 12

 Powers of SEBI (Contd…) • Powers to regulate business of stock exchanges : • SEBI is
empowered to regulate the business of stock exchanges • Intermediaries associated with
the securities market as well as mutual funds, fraudulent and unfair trade practices
relating to securities and regulation of acquisition of shares and takeovers of companies
MET-IOM SEBI- A Critical Analysis 13
 Powers of SEBI (Contd…) • Powers relating to insider trading: • SEBI has power to
regulate insider trading or can regulate the functions of merchant bankers MET-IOM
SEBI- A Critical Analysis 14
 Functions of SEBI • The SEBI performs functions to meet its objectives. • Functions can
be broadly divided into: • Protective functions • Developmental functions • Regulatory
functions MET-IOM SEBI- A Critical Analysis 15
 Functions of SEBI (Contd…) • Protective Functions• It Checks Price Rigging • It
Prohibits Insider trading • SEBI prohibits fraudulent and Unfair Trade Practices • SEBI
undertakes steps to educate investors • SEBI promotes fair practices and code of conduct
in security market MET-IOM SEBI- A Critical Analysis 16
 Functions of SEBI (Contd…) • Developmental Functions• SEBI promotes training of
intermediaries of the securities market. • SEBI tries to promote activities of stock
exchange by adopting flexible and adoptable approach in following way: • SEBI has
permitted internet trading through registered stock brokers. • SEBI has made
underwriting optional to reduce the cost of issue. • Even initial public offer of primary
market is permitted through stock exchange. MET-IOM SEBI- A Critical Analysis 17
 Functions of SEBI (Contd…) • Regulatory Functions• It has framed rules and regulations
and a code of conduct to regulate the intermediaries such as merchant bankers, brokers,
underwriters, etc. • It registers and regulates the working of all those who are associated
with stock exchange in any manner. • It registers and regulates the working of mutual
funds etc. • It regulates takeover of the companies. • It conducts inquiries and audit of
stock exchanges. MET-IOM SEBI- A Critical Analysis 18
 Change in the Market • The complete transformation of the trading, clearing and
settlement infrastructure • Dramatic transformation to a paperless market and transparent
trading system • Cutting the settlement cycle and now going forward towards a T+1
settlement system • SEBI has made the markets much safer for investors MET-IOM
 Contributions • Issue of guidelines • Public interest advertisements • Dealing with
complaints of investors • Investor education • Investor surveys • Introduction to
stockinvest • Disclosures by companies MET-IOM SEBI- A Critical Analysis 20
 Board Members of SEBI Shri U. K. Sinha, Chairman, SEBI, SEBI Bhavan, Bandra Kurla
Complex, Bandra (E), Mumbai - 400051 Shri Rajeev Kumar Agarwal Whole-Time
Member, SEBI, SEBI Bhavan, Bandra Kurla Complex, Bandra (E), Mumbai - 400051
Shri V. K. Jairath 194 B Kalpatru Horizon, S.K. Ahire Marg, Worli, Mumbai 400018
Member Appointed Shri Prashant Saran Whole-Time Member, SEBI, SEBI Bhavan,
Bandra Kurla Complex, Bandra (E), Mumbai - 400051. MET-IOM Shri Arvind Mayaram
Secretary, Department of Economic Affairs, Ministry of Finance, New Delhi Member
Nominated Shri S. Raman Whole-Time Member, SEBI, SEBI Bhavan, Bandra Kurla
Complex, Bandra (E), Mumbai - 400051. SEBI- A Critical Analysis 21
 BOARD MEMBERS (contd..) Shri Anand Sinha Deputy Governor Reserve Bank of
India Member Nominated MET-IOM Shri Naved Masood Secretary, Ministry of

Corporate Affairs Member Nominated SEBI- A Critical Analysis Shri Prakash Chandra
Chhotaray IRS (Retired Chairman of Income Tax Settlement Commission, New Delhi)
Part-time Member 22
 Summary • For the development of any economy • Capital Market, which is one of the
main organ to mobilize funds of huge order • shall evolve all steps to develop the market
• simultaneously bringing in the credibility in the financial market, which is watched
world wide • through effective and speedy implementable regulations, ultimately,
protecting the interest of the Investors and the Country MET-IOM SEBI- A Critical
Analysis 23
 Know your Stock Markets • Major Stock Exchanges in India: • National Stock Exchange
(NSE) • Bombay Stock Exchange (BSE) • MCX’SX Stock Exchange (MCX’sx) •
Various products for investments: • Equities • Derivatives • Commodities • Currencies /
Forex MET-IOM SEBI- A Critical Analysis 24
 Terminologies used in Stock Markets • Primary Market and Secondary Market • Broker
or Brokerage Firm • Know Your Customers (KYC) • Demat • Trading • Delivery •
Intraday • Blue Chip Stocks • Bull and Bear Market MET-IOM SEBI- A Critical
Analysis 25
 Terminologies used in Stock Markets • Investor and Speculator • Quote • Settlement •
Portfolio • Liquidity • Volatility • Hedging • Arbitrage • Insider Trading MET-IOM
 Know more about Stock Markets • https://www.nseindia.com • https://www.bseindia.com
• http://www.moneycontrol.com • http://www.managementparadise.com/forums/stock-markets-
tips-gyan/22083definations-every-word-used-stock-market-known-must-read.
html • http://www.tmxmoney.com/en/research/glossary.html •
http://www.timothysykes.com/2013/06/trading-terms-you-need-to-know/ MET-IOM
 Presented BySr. No. Name Roll No. 1 ANSHARI NAWED ABDUL VAHID 61 2
ATTRA GURUDEV RAVINDERSINGH 62 3 COUTINHO JOHN PETER 63 4 JAIN
ASHISH GANPATHLAL 74 5 KHAN DANISH WAHID 80 6 PAYYAPPATE
RASHMI RAVINDRAN 103 MET-IOM SEBI- A Critical Analysis 28
 Thank You
 Presentation on: Securities and Exchange Board of India (SEBI)
 Presented to: Mr. Chaksh Sharma Presented by: Sagar Sood
 • History • Establishment of SEBI • Reasons for establishment of SEBI • SEBI
headquarters • SEBI official website • Board of members • Organizational structure •
Departments under SEBI • Role of SEBI • Powers • Objectives • Functions • Satyam
scam
 • Officially established by The Government of India in the year 1988 • It was given
statutory powers in 1992 with SEBI Act 1992 • SEBI was a non statutory body but in
year 1995, the SEBI was given additional statutory power by the Government of India.
 • The Securities and Exchange Board of India (SEBI) is the regulator for the securities
market in India. • SEBI was established by the Government of India on 12 April 1988 • It
promote orderly and healthy growth of securities market and for investor protection
 • The capital market had witnessed a tremendous growth during the 1980·s • This ever
expanding investor population and market capitalization led to a variety of malpractices.

 • These malpractices include rigging of prices, unofficial premium on new issues,
violation of rules and regulations, delay in delivery of shares etc. • So, the Government of
India decided to set-up a separate regulatory body known as SEBI.
 Shri U. K. Sinha, Chairman, SEBI, SEBI Bhavan, Bandra Kurla Complex, Bandra (E),
Mumbai - 400051 Shri Prashant Saran Whole-Time Member, SEBI, SEBI Bhavan,
Bandra Kurla Complex, Bandra (E), Mumbai - 400051 Shri Rajeev Kumar Agarwal
Whole-Time Member, SEBI, SEBI Bhavan, Bandra Kurla Complex, Bandra (E),
Mumbai - 400051
 Shri V. K. Jairath 194 B Kalpatru Horizon, S.K. Ahire Marg, Worli, Mumbai 400018
Shri Anand Sinha Deputy Governor Reserve Bank of India Shri Naved Masood
Secretary, Ministry of Corporate Affairs
 • The activities of SEBI have been divided into 4 operational departments. • Each
department is headed by an Executive Director • Apart from its head office at Mumbai
SEBI has regional offices in Kolkata, Chennai, Delhi to attend to investor complaints.
 Primary market department Secondary market department Issue management department
Institutional investment department
 • Primary Market Department: It deals with all policy matters and regulatory issues
relating to primary market. • Issue Management and Intermediaries Departments: This
department is concerned with inspection of offer documents and other things like
registration, regulation and monitoring of issue related to intermediaries.
 • Secondary Market Department: It looks after all the policy and regulatory issues for the
secondary market; administration of the major stock exchanges and other matters related
to it. • Institutional Investment Department: It concerned with framing policy for foreign
institutional investors.
 • To the issuers- it aims to provide a market place in which they can confidently look
forward to raising finances they need in an easy, fair and efficient manner. • To the
investors- it should provide protection of their rights and interests through adequate,
accurate and authentic information and disclosure of information on a continuous basis. •
To the intermediaries- it should offer a
 • Power to call periodical returns from recognized stock exchange. • Power to control and
regulate stock exchange. • Power to call any information or explanation from recognized
stock exchanges or their members.
 • Power to levy fees or other charges for carrying out the purpose of regulation. • Power
to grant registration to market intermediaries. • Registration of brokers.
 • To protect the interest of investors so that there is a steady flow of savings in to the
capital market. • To regulate the securities market. • To ensure fair practices by the
issuers of securities so that they can raise resources at minimum cost.
 • To promote efficient services by brokers, merchant bankers and other intermediaries so
that they become competitive and professional. • To provide suitable education and
guidance to investors so as to enable them to protect their interest.
 • There are mainly two types of functions performed by SEBI REGULATORY
FUNCTIONS DEVELOPMENTAL FUNCTIONS
 • Registration of brokers and other players in the market. • Registration of collective
investment schemes and Mutual Funds. • Prohibition of fraudulent and unfair trade
practices.

 • Regulation of Stock Bankers and portfolio exchanges, and merchant bankers. • Levying
fee or other charges for carrying out the purposes of the Act.
 • Promoting investor’s education. • Training of intermediaries. • Conducting research and
published information useful to all market participants.
 • Promotion of fair practices. • Code of conduct for self- regulatory organizations. •
Promoting self-regulatory organizations.
 • M/s Satyam Computer Services Limited caused loss to the investors to the tune of
Rs.14,162 crore. • The company head, Ramalinga Raju and members of his family
secured illegal gains by various tricks. • The sebi team worked for 45 days and filed the
chargesheet against
 • http://www.sebi.gov.in/sebiweb/home/list/ 1/3/0/0/Regulations •
http://www.indianexpress.com/news/satya m-scam-sebi-imposes-rs-5l-fine/982544/ •
http://in.answers.yahoo.com/question/ind ex?qid=20081117080937AArbJgh

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