Session No (3)

REGULATORS OF THE INDIAN FINANCIAL SYSTEM

CONTINUED
By
Dr. Pritha Chaturvedi

Disclaimer: This PPT is the property of the ICFAI University, Jharkhand and can be used only for the educational purpose of the
students of the University
 Learning Objective

 Will provide dept understanding about the Regulators of the Indian Financial
system.

 Will help understand the regulators and what role they play in stabilizing and
accelerating the economy and the growth rate.

 Will also focus on the powers that the apex bodies have in regulating the flow of
funds and the players in the financial system.
 Table of Contents

Securities and Exchange Board of India

 Establishment

 Powers
 Functions

Insurance Regulatory Development Authority

 Establishment
 Powers
 Functions
 Securities and Exchange Board of India- Establishment and Role

Securities and Exchange Board of India (SEBI) is a statutory regulatory body entrusted
with the responsibility to regulate the Indian capital markets. It monitors and regulates
the securities market and protects the interests of the investors by enforcing certain
rules and regulations.

SEBI was founded on April 12, 1992, under the SEBI Act, 1992. Headquartered in
Mumbai, India, SEBI has regional offices in New Delhi, Chennai, Kolkata and Ahmadabad
along with other local regional offices across prominent cities in India.

SEBI acts as a watchdog for all the capital market participants and its main purpose is to
provide such an environment for the financial market enthusiasts that facilitate efficient
and smooth working of the securities market.
 Securities and Exchange Board of India- Establishment and Role

To make this happen, it ensures that the three main participants of the financial market are taken
care of, i.e. issuers of securities, investor, and financial intermediaries.

Issuers of securities
These are entities in the corporate field that raise funds from various sources in the market. SEBI
makes sure that they get a healthy and transparent environment for their needs.

Investor
Investors are the ones who keep the markets active. SEBI is responsible for maintaining an
environment that is free from malpractices to restore the confidence of general public who invest
their hard earned money in the markets.

Financial Intermediaries
These are the people who act as middlemen between the issuers and investors. They make the
financial transactions smooth and safe.
Securities and Exchange Board of India- Its Functions

Protective
functions

SEBI-
Functions

Development Regulatory
Functions Functions
Securities and Exchange Board of India- Its Functions

Create
awareness
among
investors

Prohibit
Promote fair fraudulent and
practices unfair trade
practices
Protective
Functions

Prevent insider Checking price

trading rigging
Securities and Exchange Board of India- Its Functions

Levying of
fees

Conducting Register and

inquiries and regulate credit
audit of rating agency
exchanges

Regulatory
Functions

Regulation of Registration
takeover of of
companies intermediaries

Designing
guidelines and
code of
conduct
Securities and Exchange Board of India- Its Functions

Encouraging
self-
regulating
organization
s

Imparting Develop Carry out

training to
ment research
intermediar
Functions work
ies

Promotion of
fair trading
and
reduction of
malpractices
Composition of SEBI- Name & designation of the members subject to change and the list of chairmen till date

Name Designation Name From To

10 February
Ajay Tyagi present
Ajay Tyagi Chairman 2017
18 February 10 February
U K Sinha
Gurumoorthy Mahalingam Whole time member 2011 2017
18 February 18 February
C. B. Bhave
S.K Mohanty Whole time member 2008 2011
M. 18 February 18 February
Ananta Barua Whole time member Damodaran 2005 2008
20 February 18 February
Madhabi Puri Buch Whole time member G. N. Bajpai
2002 2005
21 February 20 February
N S Vishwanathan Part-time member D. R. Mehta
1995 2002
17 January 31 January
Anand Mohan Bajaj Part-time member S. S. Nadkarni
1994 1995
G. V. 24 August 17 January
K V R Murty Part-time member Ramakrishna 1990 1994
23 August
V Ravi Anshuman Part-time member Dr. S. A. Dave 12 April 1988
1990
 Summary

1
The stock market is one of the most crucial indicators of a country’s
economic health. After SEBI came into power, stock market affairs started
becoming healthier and more transparent.

SEBI is to ensure that the Indian capital market works in a systematic

2
manner and provide investors with a transparent environment for their
investment. The primary reason for setting up SEBI was to prevent
malpractices in the capital market of India and promote the
development of the capital markets

The SEBI headquarters is located in the business district at the Bandra-

3
Kurla Complex in Mumbai. It also has regional offices in the cities of
New Delhi, Kolkata, Chennai, and Ahmedabad, and more than a dozen
local offices in cities including Bangalore, Jaipur, Guwahati, Patna,
Kochi, and Chandigarh
Thank You