SEBI - Securities and Exchange Board of India

The Securities and Exchange Board of India (SEBI) was founded as the regulating authority
for the Indian securities market on April 12, 1992, by the SEBI Act 1992.

What is SEBI?

SEBI is essentially a statutory body of the Indian Government that was established on the
12th of April in 1992. It was introduced to promote transparency in the Indian investment
market.

Besides its headquarters in Mumbai, the establishment has several regional offices
nationwide, including New Delhi, Ahmedabad, Kolkata and Chennai.

History of SEBI

Before the foundation of SEBI, the securities market was regulated by several government
institutions, resulting in inconsistency and inefficiency.

The Indian government awarded SEBI new regulatory powers in 2014, allowing it to
undertake search and seizure operations and apply harsher punishments for rigging markets
and insider trading.

Today, SEBI is regarded as one of the world's top regulatory authorities and plays an
essential role in the growth and regulation of the Indian securities market.

Objectives of SEBI

SEBI is entrusted with regulating the functioning of the Indian capital market. The objectives
of SEBI as a regulatory body are to monitor and regulate India's securities market to
safeguard investors' interests.

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It aims to inculcate a safe investment environment by implementing several rules and
regulations and formulating investment-related guidelines.

Furthermore, one of the other main objectives was to avoid malpractices in the Indian stock
market.

Organizational Structure of SEBI

SEBI India follows a corporate structure. It has a Board of Directors, senior management,
department heads and several crucial departments.

To be precise, the structure of SEBI comprises over 20 departments, all of which are
supervised by their respective department heads, which in turn are administered by a
hierarchy in general.

The hierarchical structure comprises the following 9 designated officers –

 The Chairman – Nominated by the Indian Union Government.

 Two members belonging to the Union Finance Ministry of India.
 One member belonging to the Reserve Bank of India or RBI.
 Other five members – Nominated by the Union Government of India.

The below-mentioned list highlights some of the most critical departments of SEBI –

 The Information Technology Department.

 The Foreign Portfolio Investors and Custodians.
 Office of International Affairs.
 National Institute of Securities Market.
 Investment Management Department.
 Commodity and Derivative Market Regulation Department.
 Human Resource Department.

Besides these, other crucial departments take care of legal, financial and enforcement-related
affairs.

Functions and Powers of SEBI

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Being a regulatory body, the power of SEBI is to perform vital functions. The SEBI Act of
1992 lists such powers vested in the regulatory body. The functions of SEBI make it an issuer
of securities, a protector of investors and traders and a financial mediator.

The following pointers offer a brief idea about the same.

Functions of SEBI

 To protect the interests of Indian investors in the securities market.

 To promote the development and hassle-free functioning of the securities market.
 To regulate the business operations of the securities market.
 To serve as a platform for portfolio managers, bankers, stockbrokers, investment
advisers, merchant bankers, registrars, share transfer agents and others.
 To regulate the tasks entrusted to depositors, credit rating agencies, custodians of
securities, foreign portfolio investors and other participants.
 To educate investors about securities markets and their intermediaries.
 To prohibit fraudulent and unfair trade practices within the securities market and
related to it.
 To monitor company takeovers and acquisition of shares.
 To keep the securities market efficient and up to date through proper research and
developmental tactics.

Powers of SEBI

Following are the key powers of SEBI-

 Quasi-judicial Powers
In cases of fraud and unethical practices in the securities market, SEBI India can pass
judgements.

The said power of SEBI facilitates transparency, accountability and fairness in the securities
market.

 Quasi-executive Powers

SEBI can examine the Book of Accounts and other vital documents to identify or gather
evidence against violations. If it finds one violating the regulations, the regulatory body can
impose rules, pass judgements and take legal actions against violators.

 Quasi-Legislative Powers

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To protect the interest of investors, the authoritative body has been entrusted with the power
to formulate pertinent rules and regulations. Such rules tend to encompass listing obligations,
insider trading regulations and essential disclosure requirements.

The body formulates rules and regulations to eliminate malpractices in the securities market.

The Supreme Court of India and the Securities Appellate Tribunal have the upper hand when
it comes to the powers and functions of SEBI. The two apex bodies must go through all their
functions and related decisions.

Board Members

Ms. Madhabi Puri Buch

Chairperson, SEBI
Profile

Whole-Time Members

Shri. Ashwani Bhatia

Whole-Time Member, SEBI
Under Section 4(1)(d) of the SEBI Act, 1992,
Profile

Shri Ananth Narayan G

Whole-Time Member, SEBI
Under Section 4(1)(d) of the SEBI Act, 1992,
Profile

Shri Amarjeet Singh

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 Whole-Time Member, SEBI
Under Section 4(1)(d) of the SEBI Act, 1992,
Profile

Shri Kamlesh Chandra Varshney

Whole-Time Member, SEBI
Under Section 4(1)(d) of the SEBI Act, 1992,
Profile

Part-Time Members

Shri Ajay Seth

Part-Time Member, SEBI
Under Section 4(1)(b) of the SEBI Act, 1992,
Secretary, Department of Economic Affairs, Ministry of Finance, Government of India

Dr. Manoj Govil

Part-Time Member, SEBI
Under Section 4(1)(b) of the SEBI Act, 1992,
Secretary, Ministry of Corporate Affairs, Government of India

Shri M. Rajeshwar Rao

Part-Time Member, SEBI
Under Section 4(1)(c) of the SEBI Act, 1992,
Deputy Governor, Reserve Bank of India

Dr. V. Ravi Anshuman

Part-Time Member, SEBI
Under Section 4(1)(d) of the SEBI Act, 1992,
Professor, Indian Institute of Management, Bangalore