Dr. NeelamTandon

SEBI - Introduction
Established through an executive solution in 1988.  Upgraded as fully autonomous body on 30th Jan’1992.  Setup to cover development and regulation of the market.

Objectives of the Board To protect the interest of the investors in securities.  To promote the development of securities market.  .  To regulate the securities market.

Diversify the trading products.Approaches of SEBI  Integrate the securities market at the national level.  .

Calcutta and Madras.SEBI Administration     • • Consist of one chairman and six members One each from the Department of Finance and Law of Central Government. One from RBI Two other persons. . Head office in Bombay Regional offices in Delhi.

Investigation. .Powers of Board • • • Issue Directions. Cease and desist proceedings.

Conducting enquiries and audits. . Prohibiting insider trading in securities.Functions of Board • • • • • Protect the interest of the investors and securities. Regulate the securities market. Prohibiting fraudulent and unfair trade practices relating to securities market.

Cont… • • • Regulating substantial acquisition of shares and take over of companies. mutual funds. registers and other documents of any person. . other persons associated with the securities market. Calling for information from stock exchanges. Inspection of any books.

Distributable profits in at least three years. Entry norm I (EN I) 1. Net worth of rupees one Crore in three years. Net tangible assets of at least rupees three crores for three full years. 3. .SEBI – Investors know how  Who is required to file with SEBI?  Public Issue: Entry norms. 2.

If change in name at least 50 % revenue for proceeding one year should be from the new activity. .4. The issue size does not exceed five times the pre issue net worth. 5.

.Cont…  1. Entry norm II (EN II) Issues shell be through book building root with at least 50 % to be mandatory allotted to the qualified institutional buyers (QIBs) The minimum post issue face value capital shell be rupees ten crores or there shell be compulsory market making for at least two years. 2.

The minimum post issue face value capital shell be rupees 10 crores or there shell be a compulsory market making for at least two years.Cont…  1. Entry norm III (EN III) The “Project” is apprised and participated to the extent of 15% by FIs/ scheduled Commercial banks of which atleast10% comes from the appraiser(s). . 2.

Exempted from EN’s Private sector banks.  .  Public sector banks.  Rights issue by listed companies.

Merchant Bankers Bankers to Issue Brokers & sub-brokers Code of Conduct Portfolio Managers Underwriters .


 Producing various documents to the inspecting authority of the board.PORTFOLIO MANAGER Disclosures to the board.  .  Information about the contract with clients.

 INVESTOR  Execution of orders  Issue of contract note  Investment advice  .  Compliance with statutory requirements.BROKERS AND SUB BROKERS  GENERAL Integrity.

UNDERWRITERS Not to derive any benefit from underwriting the issue.  Compliance with the rules and regulations.  . notifications of agreement for underwriting.

To execute diligence.  Not to indulge in unfair execution of its services.BANKERS TO ISSUE.  Submission of all various reports to the board.  . professional dealings with clients.

INSIDER TRADING  ‘Insider’ means any person who is or was connected with the company or is deemed to have been connected wuth the company and reasonably expected to have access to unpublished price sensitive information in respect of securities of the company. .

 Significant changes in the policies.  .  Amalgamation. mergers and takeovers.PRICE SENSITIVE INFORMATION: Periodical financial results of the company. plans or operations of the company.  Intended declaration of the dividend.


 Limited access confidential information.  .CODE OF CONDUCT For prevention of the insider trading for listed companies.  Disclosure of interest of holding by directors and officers.  Compliance officer.

VANISHING COMPANIES Companies which have not compiled with listing requirements/ filing requirements of stock exchange.  No office of the company is located at the mentioned registered office address at the time of stock exchange inspection.  .  No correspondence has been received by the exchange from the company for a long time.

which handles the complaints about the vanishing companies and further action against the companies and their directors.Contd……  SEBI has a separate section operating under the primary market department. .

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