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Security and exchange board of India

Securities Market Regulatory Body in India
Anand Kumar (DM08009)

Avinash kumar (DM08017)
Ruchi pathak (IB08053) Seema pandey (IB08032)

SEBI Bhavan, Mumbai Headquarters of SEBI


• • • • • • •

Introduction Preamble About chairperson Board members Function of the board Function of SEBI Role of SEBI in global meltdown

• • • • • • • Hierarchy of SEBI SEBI with NRIs Grievance handling Types of grievances Listing Basic requirement for listing Steps of listing

INTRODUCTION • SEBI is the Regulator for the Securities Market in India. • Originally set up by the Government of India in 1988. Chennai and Ahmedabad. Southern and Western regional offices in New Delhi. and has Northern. it acquired statutory form in 1992 with SEBI Act 1992 being passed by the Indian Parliament. SEBI is headquartered in the popular business district of Bandra-Kurla complex in Mumbai. Kolkata. Eastern. .Chaired by C B Bhave.

.Preamble “….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” .


Mr. P Chidambram with bull statue .

he had been the chairman of NSDL (National Securities Depository Limited) ushering in paperless securities. • Prior to his stint at NSDL. . he had served SEBI as a Senior Executive Director.ABOUT CHAIRPERSON • Chandrasekhar Bhaskar Bhave is the 6th chairman of the Securities Market Regulator. • He is a former Indian Administrative Service officer of the 1975 batch. • Prior to taking charge as Chairman SEBI.

Board members The board comprises of : Mr. KP Krishnan . SEBI Mr.Chairman . G Mohan Gopal .Joint secretary. ministry of corporate affairs -Director. ministry of finance . Bhopal Mr. CB Bhave . Anurag goel Dr.Secretary. national judicial academy.

Contd. Mr.Whole time member SEBI .Whole time member SEBI . Mohandas pai Mr. Prashant saran . M S sahoo Dr. infosys .Whole time member SEBI .Director. K M Abraham Mr.

To monitor and control the performance of stock exchange and derivative markets. b. . The Board is responsible for the securing the interests of investors in securities and to facilitate the growth of and to monitor the securities market in an appropriate manner.Functions Of The Board a.

. registrars to an issue. bankers to an issue. share transfer agents. portfolio managers. sub brokers. Listing and monitoring the functioning of stock brokers. investment advisers and others associated with securities markets by any means. merchant bankers. trustees of trust deeds. underwriters.Function contd… c.

Undertake periodic audits of stock exchanges. individuals and self regulatory organizations associated with the security market. Monitoring and Controlling the functioning of venture capital funds and mutual funds. Forbid unjust and dishonest trade practices in the security markets and forbid insider trading in the security market.Function contd… d. f. e. . mutual funds.

which constitute the market: The issuers of securities The investors the market intermediaries.Functions and Responsibilities of SEBI SEBI has to be responsive to the needs of three groups. .

SEBI has three functions rolled into one body 1. Quasi judicial Though this makes it very powerful.Functions and Responsibilities contd. . Quasi executive 3. Justice NK Sodhi. A second appeal lies directly to the Supreme Court. there is an appeals process to create accountability. Quasi legislative 2. There is a Securities Appellate Tribunal which is a three member tribunal and is presently headed by a former Chief Justice of a High court .Mr.

• SEBI has been active in setting up the regulations as required under law. .Contd… SEBI -success as a regulator by • pushing systemic reforms aggressively and successfully (e. the quick movement towards making the markets electronic and paperless rolling settlement).g.

Indian timings with US timings .


It had increased the extent and quantity of disclosures to be made by indian corporate promoters. inlight of the global liberalised the takeover code to facilitate investments by removing regulatory strictures. . • More recently.Role in global meltdown • SEBI has also been instrumental in taking quick and effective steps in light of the global meltdown and the Satyam fiasco.

in HIERARCHY Shri C B Bhave CHAIRMAN chairman@sebi. K M ABRAHAM Whole Time Member Shri M S SAHOO EXECUTIVE DIRECTOR (Whole Time Member) Shri PRASHANT SARAN Whole Time Member .gov.

Enforcement dept.Shri MS Sahoo Legal affair dept. Derivatives and New Products Dept. Board Matters Office of Investor Assistance and Education General Services Dept. Parliament Questions Cell . RTI Act including hearing of appeals under RTI Act Market Intermediaries Regulation and Supervision Dept.

Investigations Department Market Regulation Department Corporation Finance Department Information Technology Department .Dr. K M ABRAHAM Vigilance Cell Office of International Affairs Integrated Surveillance Dept.

Venture Capitals.) Division of Collective Investment Schemes Department of Economic and Policy Analysis Enquiry and Adjudication Department Regional Offices Investment Management Department-Division of Foreign Institutional Investors (FIIs) and Custodians Investment Management Department .Division of Funds (Portfolio Managers. etc.Division of Funds (Mutual Funds) .Shri PRASHANT SARAN Investment Management Department .

S. and deposits with. they can save or invest in India's: • Bank accounts • Investments in securities/shares of.Non-Resident Indian (NRI) Savings and Investments Most NRIs living in the United States have the option of utilizing saving and investments in US and also in India as well.India's Central Bank and Investors Education and Information) . Indian firms/companies • Investments in immovable properties in India (Source: Reserve Bank of India . From the U.

SEBI Protects NRIs The SEBI has been mandated to protect the interests of investors in securities and to promote the development of and to regulate the securities market so as to establish a dynamic and efficient Securities Market contributing to Indian Economy. . SEBI strongly believes that investors are the backbone of the securities market. They not only determine the level of activity in the securities market but also the level of activity in the economy.

to get his grievance redressed. . they should know whom he should turn to. However. Therefore.When Things Go Wrong In the event of any grievance one should first approach the concerned company/ intermediary against whom they have a grievance. one may not be satisfied with their response.

GRIVIANCE HANDELING SEBI takes up grievances related to issue and transfer of securities and non-payment of dividend with listed companies. SEBI also takes up grievances against the various intermediaries registered with it and related issues. . In addition.

. • Non-receipt of letter of offer for rights. • Non-receipt of share certificates after transfer. • Non-receipt of dividend.Types of grievances • Refund Order/ Allotment Advise. • Debentures.

• brokers/ securities Lending intermediaries/ merchant bankers/ Registrars and Transfer Agents/ Debenture Trustees/ Bankers to Issue/ Underwriters/ Credit Rating Agencies/ Depository Participants.TYPES OF GRIVIANCES • Collective Investment Schemes • Mutual Funds/ Venture Capital Funds/ Foreign Venture Capital Investors/ Foreign Institutional Investors/ Portfolio Managers. Custodians. .

TYPES OF GRIVIANCES • Securities Exchanges/ Clearing and Settlement Organizations/ Depositories. • Derivative Trading • Corporate Governance/ Corporate Restructuring/ Substantial Acquisition and Takeovers/ Buyback / Delisting / Compliance With Listing Conditions. .

Listing It refers to the admission of the security of a public limited company on a recognized stock exchange for trading. .

Merits of listing • • • • • • • Liquidity Best prices Regular information. Periodic reports Transferability Income tax benefit Wide publicity .

• Essential information has to be submitted by the listed Co.’s to the stock exchanges.’s are subjected to various regulatory measures of the stock exchanges and SEBI. .Demerits • Listed Co.

But this is a pre. . Annual reports have to be sent to large number of shareholders. This creates unnecessary expenditures.requisite for the company’s shares to be listed.Contd… • AGM. • Public offer itself is an expensive exercise.

Minimum Listing Requirements for new companies a. 10 crores and market capitalization of not less than Rs. 25 crores. Companies have been classified as large cap companies and small cap companies. A small cap company is a company other than a large cap company. A large cap company is a company with a minimum issue size of Rs. .

In respect of Small Cap Companies The minimum issue size shall be Rs. 3 crores .

. 20 crores will pay additional fee of Rs. 1 crore or part thereof. 10. 5 crores Rs. 15. 750/.20.000 Annual Listing Fees (i) Companies with paid-up capital upto Rs.Steps of Listing 1.000 (ii) Above Rs.Submission of Letter of Application 2.Payment of Listing Fees Initial Listing Fees Rs. 30.000 (iii) Above Rs. 10 crores and upto Rs. 10 crores Rs. 20 crores Rs. 5 crores and upto Rs.000 Companies which have a paid-up capital of more than Rs.for every increase of Rs.

Trading Permission .Steps contd… 3.Collection of Listing Fees – HDFC bank 4. Advertisement – No adv. of over subscription / any thanking note in news paper .SEBI 6.