SECURITIES & EXCHANGE BOARD

OF INDIA (SEBI)

Presented by:-
Rashi Aggarwal
MBA (307)
2020070099
HISTORY

 Set up originally in 1988 by Govt. of India

 Acquired statutory form in 1992 under SEBI
Act 1992
 Chairman is Sh. CB Bhave
 Headquartered in Mumbai
OBJECTIVES

Established in 1992 with three main objectives

 To protect the interest of investors in
securities
 To promote the development of securities
market
 Make rules and regulations for the securities
market
ORGANISATION STRUCTURE

Board comprise of:

 Chairman
 MD
 Joint Secretary, Ministry of Finance
 Deputy Governer, RBI
 Whole Time Member, SEBI
 Secretary, Ministry of Corporate Affairs
 Director, National Judicial Academy
FUNCTIONS & RESPONSIBILITIES

 PRIMARY MARKET
 SECONDARY MARKET
 MUTUAL FUNDS
 FOREIGN INSTITUTIONAL INVESTMENTS
SEBI ROLE IN PRIMARY MARKET

 Entry norms
 Disclosure
 Book Building
 Allocation of shares
SECONDARY MARKET & SEBI

 Governing Board
 Infrastructure
 Price stabilization
 Delisting
 Brokers
MUTUAL FUNDS & SEBI

 Discloser norms
 Investment
 Accountability
 Management
SEBI and FIIS

 SEBI (Foreign Institutional Investors)

Regulation 1995 has laid down for the
registration of FIIs.
 Foreign investors perform according to
guidelines.
GUIDELINES FOR LISTING OF NEW
COMPANIES

 LARGE CAP
Issue size Rs.10 crore
Market Capitalization Rs.25 crore
Post issue paid up capital Rs.3 crore

 SMALL CAP
Issue size Rs. 3 crore
Market Capitalization Rs.5 crore
Post issue paid up capital Rs.3 crore
Minimum income Rs.3 crore in 3 preceding years
Minimum number of public shareholders 1000
GUIDELINES FOR EXISTING COS.

 Paid up capital Rs. 3 crore.

 Market Capitalization 2 times of paid up
 Networth Rs.20 crore
 Dividend 10%
 Profit making track for preceding last 3 years
GUIDELINES FOR NEW ISSUE
MARKET

 Post issue capital decreased to 10% in all sectors.

 SEBI’s nominee is appointed in allotment
committee.
 Time for finalizing allotment reduced from 30 to 15
days.
 Compulsory Book building process if issue size is
5 times the pre issue networth.
Cont..

 New company (not subsidiary of existing co.)

issue shares at face value.
 Wide publicity after disclosure of information
in national English daily, national Hindi daily.
 Lead managers, underwriters, bankers to an
issue must be registered with SEBI.
THANK YOU!