Security and exchange board of

India.

•Sebi is the regulator for the securities market in

India.

•The security and exchange board of India was

established on April 12, 1988 by the central
government to control and regulate the stock
exchanges functioning in India.

•SEBI was given statutory status on 31 January 1992

and its started functioning when sebi act was passed.
• SEBI has its head office in Mumbai
and other offices in New Delhi, Calcutta and
Chennai.

• Chairman – Mr. M. Damodaran.

Objective of sebi
• It tries to develop the securities market.

• Promotes Investors Interest.

• Makes rules and regulations for the securities

market.

• It protects the right and interests of investor.

• To provide suitable education and guidance to

investor.
Function of sebi
• To protect the interests of investors.

• To regulate and control the business on sock exchanges

and other security markets.

• To make registration and to regulate the functioning of

intermediaries.

• To issue guidelines to companies regarding capital issues.

• To conduct inspection, inquiries and audits of stock

exchanges.

• To restrict insider trading activity.

Power of sebi
• Power relating to stock exchanges and
intermediaries.

• Power relating to monetary penalties.

• Power to initiate actions relating to functions

assigned.

• Power relating to insider trading.

• Power to regulate business of stock exchange.

More powers are now given to SEBI.

• File complaints in courts and notify

regulation without prior approval of
Government.
• Regulatory power to campanies in
the issuance of capital, transfer of
securities etc.
• Call for document from all
categories of market intermedaries.
 SEBI is working for broadening the
membership of stock exchange,
shortening settlement periods,
improving transparency of
transactions, promoting
professionalism among brokers and
encouraging the stock exchanges to
computerise their function.
• Dematerialisation of shares is one
area where the sebi claims to have
made significance.

• One singular success which the sebi

claim to have made has been in
pushing screen based trading.
Registration with sebi of intemediaries.

• Merchant bankers.
• Registrar and share transfer agent.
• Underwriters.
• Portfolio manager.
• Stock brokers.
• Sub-brokers.
List of defaulting companies to
investors.
1 AASHI INDUSTRIES LTD
2 BETA NAPHTHOL LIMITED
3 HINDUSTAN INDUSTRIAL CHEMICALS LTD
4 INDO AMERICAN CREDIT CORPORATION LTD

5 INDO AMERICAN OPTICS LTD

6 JAYANT VITAMINS LTD
7 MOTOROL ENTERPRISE LTD
8 OJAS TECHNOCHEM PRODUCTS LTD
9 PANJWANI PACKAGING LTD
10 PANKAJ AGRO PROTINEX LTD
11 TOPLINE SHOES LTD
Action taken by sebi for defaulting
companies.

• Letter along with the complaint

were sent to the companies
advising them to resolve the
grievances and submit status report
to sebi with in 30 days.
• These companies has not responded
to sebi’s letter to resolve the
complaint.
• Such companies are laible to pay
the penalty of 1,00,000 Rs. each
day during which such failure
continues or one crore rupees
whichever is less.
• If any company defaults in solving
the grievance and submit the report
sebi takes action against these
companies and the directors.