Presentation on SEBI: Contents: Introduction Objectives Organisation Functions Powers Legislations:Acts SEBI and Central Government Policy Development: SEBI Regulations on Primary Markets, Capital markets, Collective Investment Vehicles, and Debt markets.

1. THE SECURITIES AND
EXCHANGE BOARD OF
INDIA (SEBI)

2. INTRODUCTION
 SEBI(Securities and Exchange Board of India) was constituted
on April 12,1988 as a non-statutory body
 It is an apex body to develop and regulate the stock market in
India
 SEBI is the regulator for the securities market in India, originally
set up by the Government of India in 1988,it acquired statutory
form in 1992 with SEBI Act 1992 being passed by the Indian
Parliament.

3. OBJECTIVES
 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
 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.

4. ORGANISATION
SEBI has divided its activities in to four operational
departments, each headed by an Executive
Director.
1.Primary Market Department: It deals with all
policy matters and regulatory issues relating to
primary market.
2.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.
3.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.
4.Institutional Investment Department: It
concerned with framing policy for foreign
institutional investors.

5.  In addition to this, there are two other departments:
They are; Legal Department and Investigation
Department, also headed by officials of the rank of
Executive Directors.
 SEBI has two Advisory Committees, one each for
primary and secondary markets. They provide
advisory inputs in framing policies and regulations.
These committees are non-statutory in nature and
SEBI is not bound by the committees.

6. FUNCTIONS
Section 11 of the SEBI Act , there are mainly two types of functions.
They are;
1.Regulatory Functions
2.Developmental Functions
Regulatory Functions
(a) Regulating the business in stock exchanges and any other
securities markets.

7. (b) Registration and regulation of stock brokers , sub-brokers
, registrar to all issue, merchant bankers,
underwriters, portfolio managers and such other
intermediaries who are associated with securities
market.
(c) Registration and regulation of the working of Venture
capital funds and Collective investment schemes
including mutual funds.
(d) Prohibition of fraudulent and unfair trade practices
relating to securities market.
(e). Prohibition of insider trading in securities.
(f ). Regulating substantial acquisitions of shares and
take over of companies.

8. Developmental Functions
(a). Promoting investor’s education.
(Investor Protection and Education Fund)
(b). Training of intermediaries.
(c). Conducting research and publishing information useful to all market
participants.
(d). Promotion of fair practices. Code of conduct for self-regulatory
organizations.
(e). Promoting self-regulatory organizations.

9. POWERS
SEBI has been vested with the following
powers:
1.Power to call periodical returns from
recognized stock exchange.
2.Power to control and regulate stock exchange.
3.Power to call any information or explanation
from recognized stock exchanges or their
members.
4. Power to levy fees or other charges for
carrying out the purpose of regulation.
5. Power to grant registration to market
intermediaries.

10. 6.Power to direct enquiries to be made in relation
to affairs of stock exchanges or members.
7. Power to grant approval to bye-laws of
recognized stock exchanges.
8. Power to make or amend bye-laws of
recognized stock exchanges.
9. Power to compel listing of securities by public
companies.
10. Power to declare applicability of Section 17 of
the Securities Contract (Regulation) Act is any
state or area to grant licenses to dealers in
securities.

11. SEBI and Central
Government
 The Central Government has power to issue
directions to 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.

12.  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.

13. Legal Framework : Acts
 Aug 22, 2014 : Securities Laws (Amendment) Act, 2014
 Mar 28, 2014 : The Securities Laws (Amendment) Ordinance, 2014
 Oct 03, 2013 : Notification under section 16 and 28 of Securities
Contracts (Regulation) Act, 1956
 Sep 16, 2013 : The Securities Laws (Amendment) Second
Ordinance, 2013
 Sep 13, 2013 : The Securities and Exchange Board of India
(Amendment) Act, 2013
 Jul 18, 2013 : The Securities Laws (Amendment) Ordinance, 2013
 Sep 20, 1995 : The Depositories Act, 1996 [As amended by the
Securities Laws(Amendment) Act, 2014]
 Jan 30, 1992 : Securities and Exchange Board of India Act, 1992
[As amended by the Securities Laws(Amendment) Act, 2014]
 Feb 16, 1957 : The Securities Contracts (Regulation) Act, 1956 [As
amended by the Securities Laws(Amendment) Act, 2014]

14. Policy Developments
With the objectives of maintaining fair and
efficient markets, developing new products,
improving the securities market arena,
enhancing operational efficiencies,
encouraging small investors, and attracting
new players, various regulatory changes were
made by the regulators in India—the Ministry
of Finance (MoF), the SEBI, and the RBI—in
the Indian securities market.

15. Primary Market
 ASBA facility through syndicate / sub-syndicate
members (SEBI Circular dated
April 29, 2011)
 ASBA facility mandatory for QIBs and NIIs
(SEBI Circular dated April 29, 2011)
 Adjustment of differential pricing amount at
the time of application for allotment of
specified securities (SEBI Circular dated
May 16, 2011)

16.  Amendment to the SEBI (Issue of Capital and
Disclosure Requirements) Regulations, 2009
for revision of bid cum-application form and
abridged prospectus (SEBI Press Release
dated July 28, 2011)
 Eligibility criteria for companies coming out
with IPOs through the profitability track record
(SEBI Press Release dated July 28, 2011)e
dated July 28, 2011)
 Disclosure of quarterly financial results (SEBI
Press Release dated July 28, 2011)

17.  Mode of supplying annual reports to
shareholders (SEBI Press Release dated July
28, 2011)
 Disclosure of voting results by listed entities
(SEBI Press Release dated July 28, 2011)
 Disclosure of price information of past issues
handled by merchant bankers (SEBI
Notification dated September 23, 2011)
 Comprehensive guidelines on offer for sale
(OFS) of shares by promoters through the
stock exchange mechanism (SEBI Circular
dated July 18, 2012)

18. Collective Investment Vehicles
 Option to hold mutual fund units in demat
form (SEBI Circular dated May 19, 2011)
 Investment by foreign investors in mutual
fund schemes (SEBI Circular dated August
9, 2011)
 Commission disclosures by mutual funds
(SEBI Circular dated August 22, 2011)

19. Capital Markets
 Review of Internet-based trading and
securities trading using wireless technology
(SEBI Circular dated June 30, 2011)
 Clarification regarding admission of limited
liability partnerships as members of stock
exchanges (SEBI Circular dated July 11, 2011)
 SMS and email alerts to investors from stock
exchanges (SEBI Circular dated August 2,
2011)
 Simplification and rationalisation of opening
process for trading accounts (SEBI Circular
dated August 22, 2011)

20.  Amendment to SEBI (Buyback of
Securities) Regulations, 1998 (SEBI
Notification dated February 7, 2012)
 Exit policy for de-recognised/non-operational
stock exchanges (SEBI Circular
dated May 30, 2012) Circular dated
February 21 2012)

21. Debt Market
 Setting up of Central Electronic Registry under
the SARFAESI Act, 2002 (RBI Circular dated
April 21, 2011)
 Guidelines for issue and listing of structured
products/market linked debentures (SEBI
Circular dated September 28, 2011)
 Ban on incentives in public issues of debt
(SEBI Circular dated December 26, 2011)
 Standardisation of application form and
abridged prospectus for public issue of debt
securities (SEBI Circular dated July 25, 2012)

22.  System for making online applications for
public issue of debt securities (SEBI
Circular dated July 27, 2012)

23. THANK YOU