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History
It was formed officially by the Government of India in 1992 with SEBI Act
1992[2] being passed by the Indian Parliament. SEBI is headquartered in
the business district of Bandra-Kurla complex in Mumbai, and has
Northern, Eastern, Southern and Western regional offices in New
Delhi, Kolkata, Chennai and Ahmedabad.
Controller of Capital Issues was the regulatory authority before SEBI
came into existence[3]; it derived authority from the Capital Issues
(Control) Act, 1947.
[edit]Organization structure
Upendra Kumar Sinha was appointed chairman on February 18 2011
replacing C. B. Bhave.[4] .
The Board comprises[5]
Name Designation
CA. T. V. Mohandas
Director, Infosys
Pai
Name From To
February 18,
C. B. Bhave February 18 2011
2008
February 18,
Shri M.. Damodaran February 18, 2008
2005
February 20,
Shri G. N. Bajpai February 18, 2005
2002
February 21,
Shri D. R. Mehta February 20, 2002
1995
Shri G. V.
August 24, 1990 January 17, 1994
Ramakrishna
SEBI has the right to search and seizure where just cause can be
given[8]. In matters of security trading, SEBI has the power to restrict and
allow trading in a given scrip without any external (i.e. judicial or
executive) intervention[9].
[edit]SEBI Committees
The Foreign Exchange Regulation Act of 1973 (FERA) in India was repealed on 1 June, 2000. It was
replaced by the Foreign Exchange Management Act (FEMA), which was passed in the winter session
of Parliament in 1999. Enacted in 1973, in the backdrop of acute shortage of Foreign Exchange in the
country, FERA had a controversial 27 year stint during which many bosses of the Indian Corporate world
found themselves at the mercy of the Enforcement Directorate (E.D.). Any offense under FERA was
a criminal offense liable to imprisonment, whereas FEMA seeks to make offenses relating to foreign
exchange civil offenses.
FEMA, which has replaced FERA, had become the need of the hour since FERA had become
incompatible with the pro-liberalisation policies of the Government of India. FEMA has brought a new
management regime of Foreign Exchange consistent with the emerging frame work of the World Trade
Organisation (WTO). It is another matter that enactment of FEMA also brought with it Prevention of
Money Laundering Act, 2002 which came into effect recently from 1 July, 2005 and the heat of which is
yet to be felt as “Enforcement Directorate” would be invesitigating the cases under PMLA too.
Unlike other laws where everything is permitted unless specifically prohibited, under FERA everything
was prohibited unless specifically permitted. Hence the tenor and tone of the Act was very drastic. It
provided for imprisonment of even a very minor offence. Under FERA, a person was presumed guilty
unless he proved himself innocent whereas under other laws, a person is presumed innocent unless he is
proven guilty.
The Foreign Exchange Management Act (1999) or in short FEMA has been introduced as a replacement
for earlier Foreign Exchange Regulation Act (FERA). FEMA became an act on the 1st day of June, 2000.
FEMA was introduced because the FERA didn’t fit in with post-liberalisation policies. A significant
change that the FEMA brought with it, was that it made all offenses regarding foreign exchange civil
offenses, as opposed to criminal offenses as dictated by FERA.
The main objective behind the Foreign Exchange Management Act (1999) is to consolidate and amend
the law relating to foreign exchange with the objective of facilitating external trade and payments. It
was also formulated to promote the orderly development and maintenance of foreign exchange market
in India.
FEMA is applicable to all parts of India. The act is also applicable to all branches, offices and agencies
outside India owned or controlled by a person who is a resident of India.
The FEMA head-office, also known as Enforcement Directorate is situated in New Delhi and is headed
by a Director. The Directorate is further divided into 5 zonal offices in Delhi, Mumbai, Kolkata, Chennai
and Jalandhar and each office is headed by a Deputy Director. Each zone is further divided into 7 sub-
zonal offices headed by the Assistant Directors and 5 field units headed by Chief Enforcement Officers.