Professional Documents
Culture Documents
The Securities and Exchange Board of India was established on April 12, 1992 in accordance
with the provisions of the Securities and Exchange Board of India Act, 1992.The Preamble of the
Securities and Exchange Board of India describes the basic functions of the Securities and
Exchange Board of India as
“…..to protect the interests of investors in securities and to promote the development of,
and to regulate the securities market and for matters connected therewith or incidental
thereto”
Functions
This division would look after work relating to registration, monitoring, supervision,
inspection, investor grievances and policy related issues of Stock Brokers and Fees
related matters including coordination of summary proceedings.
1.2 MIRSD-2 (N-Z)
This division would look after the work relating to Registration, monitoring,
supervision, inspection, investor grievances and policy related issues of Stock
Brokers and Sub-Brokers.
1.3 MIRSD-3 This division would look after the work relating to
Registration, monitoring, supervision, inspection, investor grievances and
policy related issues of the following Primary market related
intermediaries:
iv. Underwriters.
1.4 MIRSD-4
This division would look after the work relating to Registration, monitoring,
supervision, inspection, investor grievances and policy related issues of the
following intermediaries:
1.5 MIRSD-5
This division looks into the matters relating to the following intermediaries:
i. Sub-brokers
ii. Debenture Trustees
The Market Regulation Department is 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.
(‘hereinafter collectively referred to as ‘Market SROs) The following Divisions will perform
the functions of the Department:
The Division will handle the work related to policy and practice relating to Market SROs i.e.,
securities exchanges, clearing and settlement organizations and depositories; market policy,
trading, clearance, settlement issues, risk management, and related areas; Reviewing rules
and rule-change proposals of these Market SROs relating to market policy issues (except for
listing matters standards in purview of Corporation Finance Department); Procedures for
suspending trading of securities.
The Division will handle the work related to Registration and recognition of the Market
SROs; administration of these Market SROs; Demutualization or Corporatization of
exchanges; reviewing rule change proposals relating to non-market policy issues; supervision
of the market SROs to the extent of compliance with regulatory provisions through periodical
reports and regulatory action. (As regards action it is clarified that the current practice of
issuing show cause notices, appointment of Enquiry/Adjudication officers and consequential
action up to serving of Chairman’s order and maintenance of databse will be with the
Division).
The Division will hand the work related to conducting compliance, examinations and
inspections of Market SROs.
The cell would receive complaints relating to the market SROs from the Office of Investor
Assistance and Education (OIAE) and take follow up action and report back to the OIAE. If
regulatory action is required, the Cell shall inform the Division of SRO Administration
besides reporting to OIAE.
The Division is responsible for supervising the functioning and operations of derivatives
exchanges and related market organizations. In order to accomplish its tasks, this division
would be responsible for the following:
Prescribing and Monitoring risk management and settlement practices in derivatives
exchanges
Developing the trading and settlement framework for new products.
Regulatory action were required. As regards action it is clarified that the current
practice of issuing show cause notices, appointment of
The cell would receive complaints relating to the derivatives exchanges and related
organizations from the Office of Investor Assistance and Education (OIAE) and take follow
up action and report back to the OIAE. If regulatory action is required, the Cell shall inform
the Division of Policy and supervision besides reporting to OIAE.
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.
2. Issue of observations on the draft offer documents of public and rights issues.
Primary Market Advisory Committee (PMAC)- to advise SEBI on policy issues
pertaining to Primary Market.
SEBI Committee of Disclosures and Accounting (SCODA) - to advise SEBI on
disclosures and accounting related issues.
5. Regulatory action where required(As regards action it is clarified that the current practice
of issuing show cause notices, appointment of Enquiry/Adjudication officers and
consequential action upto serving of Chairman’s order and maintenance of database will be
with the Division).”
Regulatory action where required. (As regards action it is clarified that the current
practice of issuing show cause notices, appointment of Enquiry/Adjudication officers
and consequential action up to serving of Chairman’s order and maintenance of
database will be with the Division).
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. The following Divisions will perform the functions of the Department;
The Divisions handle the following works related to their respective entities:
· Registrations
· Inspections
. Regulatory actions.
Investor Complaints Cell:
The cell would receive complaints relating to their respective entities from the OIAE and
take follow up action and report back to OIAE. If regulatory action is required, the Cell shall
keep the OIAE informed.
FIIs
Custodians
The cell would receive complaints relating to FIIs and custodians from the OIAE and take
follow up action and report back to OIAE. If regulatory action is required, the cell shall keep
the OIAE informed.
This Division administers the SEBI (Collective Investment Schemes) Regulations 1999. It
includes work relating to the following :
Taking action against the entities for non compliance with the regulations like,
prohibitory orders and launching prosecutions against errant entities and their
promoters/ directors and key management personnel.
The above activities are also conducted at the regional offices of SEBI, wherever the address
of the CIS entity is located.
The cell shall address the complaints of investors relating to CIS or alleged CIS entities from
the OIAE. The Division shall take action and report back to OIAE about the same. The
Regional Offices of SEBI report the status of complaints to Head Office Division of CIS. In
case of regulatory actions, the OIAE shall be informed about the same.
The intergrated Surveillance department is responsible for monitoring market activity
through market systems, data from other departments and analytical software. The
department would be responsible for:
Methodologies for capturing information from media review, public complaints and
tips, other agencies, exchanges, and direct solicitations; assignment of staff to handle
functions; method of logging and cataloguing information; criteria for evaluating and
distributing information; input into tracking and other systems.
Assisting the enforcement department in enforcing SEBI action against violators.
(As regards action, the current practice of issuing show cause notices, appointment of
Enquiry/Adjudication officers and consequential action up to serving of Chairman’s
order and maintenance of database will be with the Department).
The division shall enforce action against market misdemeanors through SEBI
administrative proceedings. The role of the Division shall commence from the time
the hearing before Chairman/Board is proposed. The Division will assist the
Chairman/Board in its proceedings, prepare the orders, handle all matters relating to
SAT, appeals against SAT orders and Court cases relating to regulatory action. The
Division will also frame the procedures relating to the above matters.
The division shall handle work related to filing prosecution proceedings through the
courts and follow up to obtain conviction. The Division will also frame procedures
for cooperation with public prosecutors, other agencies and for making referrals to
prosecutors and other government agencies
The Department of Legal Affairs would be responsible to provide legal counsel to the Board
and to its other departments, and to handle non-enforcement litigation. The following
Divisions will handle the functions of the Department.
The division would work to formulate SEBI’s legislative initiatives and review and comment
upon proposed legislation that would affect the securities industry or SEBI’s authority or
operation. It would handle testimony and statutory drafting assistance. The division would
also be responsible for establishing a clear legal framework and basis for the various
categories of SEBI pronouncements (e., regulations, guidelines, circulars, instructions, etc.,);
the hierarchy of their force and effect; the procedure for their promulgation, amendment or
repeal.
The division would support other SEBI departments in meeting their objectives by providing
assistance and guidance wherever necessary in developing market rules and interpretations.
The Enquiries and Adjudication Department would handle quasi judicial matters and provide
timely hearings and initiate adjudication brought by the other Departments against alleged
violators who are within SEBI’s disciplinary jurisdiction. The department would directly
report to Chairman.
The Office will support SEBI’s operations by handling investor complaints centrally and be
the focal point of SEBI’s investor education effort. The Office would be the single point
interface with investors and would receive complaints relating to all departments, forward to
the concerned departments, follow up and respond to investors. The office shall set up
necessary systems and procedures to handle his function.
The Office will also receive complaints relating to issues, transfer of shares, dividends,
compliance with listing conditions, corporate governance issues under the purview of the
Corporation Finance department (Division of Issues and Listing) and take follow up action.
This department would support all of the internal operations of SEBI. The Department will
have the following divisions.
Maintaining internal accounting records, developing internal control systems for
collections and disbursements and other financial controls
The division will be responsible for the establishment and maintenance of the physical
facility housing the regulator and related needs.
The Division will handle the work related to compliance with Government’s official
language policy and Translation of certain documents into the official language.
The Office of the Secretary shall coordinate Board meetings, record and maintain Board
decisions.
Protocol duties for visits/ meetings of senior officials of SEBI and co-ordinating
visits of dignitaries to SEBI,
Security and Fire fighting duties in the office and residential premises of SEBI,
General upkeep of the office premises and maintenance of SEBI buildings,
Verification of dead stock inventory for SEBI's offices and residential premises
13. DEPARTMENT OF ECONOMIC AND POLICY ANALYSIS (DEPA)
The Department will handle its functions through the following Divisions:
14. OFFICE OF THE CHAIRMAN (OCH)
The office will be responsible to provide such administrative and other support as the
Chairman may require. The functions would include strategic planning and managing new
initiatives.
Establish guidelines for interaction with foreign Government agencies and foreign
jurisdictions, including providing technical assistance.
The division would be responsible for all communications of SEBI. These include:
Media releases and other forms of communication including the publication of SEBI
materials.
The Human Resources Division will perform all the functions in its role as the
principal personnel and human resources authority in SEBI.
15 INFORMATION TECHNOLOGY DEPARTMENT
This department would perform its role as the technical support group for SEBI.
The Regional Office will handle work as per existing delegation and shall continue to report
to functional heads for specific departmental functions while reporting administratively to
SEBI Executive Directors.