SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI)

For proper evolution and direction of any sector or market and to allow perfect competition and
prevention of mal-practises, an overseeing body is required. This body is called as the regulator.
The Securities and Exchange Board of India (SEBI) is the regulator of the securities market a
market where instruments such as , shares, stocks, derivates of shares, commodities etc.
The absence of conditions of perfect competition in the securities market
makes the role of the Regulator extremely important. The regulator ensures
that the market participants behave in a desired manner so that securities
market continues to be a major source of finance for corporate and
government and the interest of investors are protected.
SEBI was formed to protect the interests of investors in securities and to promote the development
of, and to regulate the securities market and help retail and institutional investors.
SEBI is the regulatory
authority in India established under Section 3 of SEBI Act, 1992. SEBI Act,
1992 provides SEBI the following powers
(a) protecting the interests of investors in
securities
(b) promoting the development of the securities market; and
(c)
regulating the securities market.
Its regulatory jurisdiction extends over
corporates in the issue of capital and transfer of securities, in addition to
all intermediaries and persons associated with securities market.
It has powers for:
1. Regulating the business in stock exchanges and any other securities
markets
2. Registering and regulating the working of stock brokers, subbrokers
etc.
3. Promoting and regulating self-regulatory organizations
4. Prohibiting fraudulent and unfair trade practices
5. Calling for information from, undertaking inspection, conducting
inquiries and audits of the stock exchanges, intermediaries, self
regulatory organizations, mutual funds and other persons associated with the securities market.
The current SEBI Board comprises of:
Shri U. K. Sinha - CHAIRMAN
Shri M. S. Sahoo, Whole-Time Member, SEBI
Dr. K. M. Abraham, Whole-Time Member, SEBI
T. V. Mohandas Pai
, Director, Infosys Technologies Ltd.
Shri Prashant Saran, Whole-Time Member, SEBI.
Dr. Thomas Mathew, Joint Secretary (Capital Markets), Department of Economic Affairs,
Ministry of Finance
Shri V. K. Jairath, Member Appointed
Shri Anand Sinha, Deputy Governor, Reserve Bank of India
Shri D K Mittal
, Secretary
, Ministry of Corporate Affairs
These members together look into the operations of the securities market and depending on the
powers conferred on the Board under the SEBI Act, the regulate and protect interest of the investors
through its various departments.
The departments in SEBI are:
Market Intermediaries Regulation and Supervision Department:
The Market Intermediaries Regulation and Supervision Department is responsible for the
registration, supervision, compliance monitoring and inspections of all market intermediaries in
respect of all segments of the markets viz. equity, equity derivatives, debt and debt related
derivatives.
Market Regulation Department:
s responsible for supervising the functioning and operations (except relating to derivatives) of
securities exchanges, their subsidiaries, and market institutions such as Clearing and settlement
organizations and Depositories.
Derivatives and New Products Departments:
This department is responsible for supervising the functioning and operations of derivatives
exchanges, and addresses ibvestor complaints.
Corporation Finance Department:
The Corporation Finance Department deals with matters relating to (i) Issuance and listing of
securities, including initial and continuous listing requirements (ii) corporate governance and
accounting/auditing standards (iii) corporate restructuring through Takeovers / buy backs (iv)
Delisting etc.
Investment Management Department:
The Investment Management department is responsible for registering and regulating mutual funds,
venture capital funds, foreign venture capital investors, collective investment schemes, including
plantation schemes, Foreign Institutional Investors, Portfolio Managers and Custodians.
Integrated Surveillance Department:
The intergrated Surveillance department is responsible for monitoring market activity through
market systems, data from other departments and analytical software.
Investigations Department:
The Investigations department is responsible for:
Conducting investigations on potentially illegal market activities.
Providing referrals to the enforcement department.
Assisting the enforcement department in enforcing SEBI action against violators.
Enforcement Department:
Enforcement Department is responsible for proceedings related to regulatory action and obtaining
redress for violations of securities laws and regulations against all market participants, issuers and
individuals and other entities that breach securities laws and regulations.
Legal Affairs Department:
It is responsible to provide legal counsel to the Board and to its other departments, and to handle
non-enforcement litigation.
Enquiries and Adjudication Department:
Handles quasi-judicial matters and provide timely hearings and initiate adjudication brought by the
other Departments against alleged violators who are within SEBIs disciplinary jurisdiction.
Office Of Investor Assistance and Education:
The office will support SEBIs operations by handling investor complaints centrally and be the focal
point of SEBIs investor education effort.
General Services Department:
This department supports all of the internal operations of SEBI.
Treasury and Accounts Division:
The Division will handle work related to:
Development of SEBIs internal budget and accounting systems
Presentation of reports and budgets to the SEBI Board
Maintaining internal accounting records, developing internal control systems for collections and
disbursements and other financial controls
Managing SEBIs investments
Facilities Management Division:
The division will be responsible for the establishment and maintenance of the physical facility
housing the regulator and related needs.
Department of Economic and Policy Analysis:
The Department will handle its functions through the following Divisions:
Division of Policy Analysis (DPA)
Division of Economic Analysis (DEA)
Office of the Chairman:
This has imprtant sub divisions such as Office of International Affairs, Communications Division,
Human Resources Division and Office of the Executive Assistant to the Chairman.
Information Technology Department:
This department would perform its role as the technical support group for SEBI.
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