SECURITIES & EXCHANGE

BOARD OF INDIA (SEBI)

HISTORY

 Setup originally in 1988 by Govt. of India

 Acquired statutory form in 1992 under
SEBI Act 1992
 Chairman is MR.CB Bhave
 Headquartered in Mumbai
 OBJECTIVES

Established in 1992 with three main objectives

 To protect the interest of investors in securities

 To promote the development of securities market

 To regulate the securities market

 To promote efficient services by brokers and other

intermediaries.
SEBI MANAGEMENT
A Board by the name of the Securities and Exchange Board of
India (SEBI) was constituted under the SEBI Act.

 It consists of one Chairman and five members.

 One each from the department of Finance and Law of the

Central Government.

 One from the Reserve Bank of India.

 One from the Reserve Bank of India.

 And
two other persons and having its head office in
Bombay and regional offices in Delhi, Calcutta and
Madras.

 TheCentral Government reserves the right to

terminate the services of the Chairman or any
member of the Board.
ORGANISATION STRUCTURE
Board comprise of:

 Chairman - Mr CB Bhave
 Joint Secretary, Ministry of Finance - Mr KP Krishnan
 Secretary, Ministry of Corporate Affairs - Mr Anurag Goel
 Director, National Judicial Academy, Bhopal - Dr G Mohan
Gopal
 Whole Time Member, SEBI - Mr MS Sahoo
 Whole Time Member, SEBI - Dr KM Abraham
 Whole Time Member, SEBI - Mr Prashant Saran
 Deputy Governer, RBI - Smt. Usha Thorat
FUNCTIONS OF SEBI

REGULATORY FUNCTIONS
 Regulation of stock exchange and self regulatory
organisations.

 Registration
and regulation of stock brokers,
merchant bankers and such other intermediaries.

 Registration and regulation of mutual funds and

collective investment schemes
Cond…

 Prohibition of fraudulent and unfair trade practices.

 Prohibition of insider trading in securities.

 Regulating substantial acquisitions of shares and

take over of companies
FUNCTIONS OF SEBI

DEVELOPMENTAL FUNCTIONS
 Promoting investor’s education.

 Training of intermediaries

 Conducting research and published information useful

to all market participants.

 Promoting & Regulating Self Regulatory Organizations

POWERS OF SEBI

 Power to call periodical returns from recognised stock exchanges.

 Power to call any information or explanation from stock exchanges
or their members.
 To direct enquiries to be made in relation to affairs of stock
exchanges or their members.
 Power to grant approval to bye-laws of recognised stock exchanges.
Cond…

 Power to make or amend bye-laws of recognised stock

exchanges.
 Power to compel listing of securities by public companies.
 Power to control and regulate stock exchanges.
 Power to grant registration to market intermediaries.
 Power to levy fees or other charges for carrying out the
purpose of regulation.
INVESTOR PROTECTION
MEASURES

 Simplification of share transfer and allotment procedure

 Unique order code number

 Time stamping of contracts

 Role of sub-brokers

 Investor protection fund

RESERVE BANK OF INDIA (RBI)
Introduction
 The Reserve Bank of India is the central bank of India.
 It was established on April 1, 1935.
 In accordance with the provisions of the Reserve Bank of
India Act, 1934.
 Headquarters -Mumbai, Maharashtra, India.
 RBI has been fully owned by the Government of India since
nationalization in 1949
Organization of RBI
Central Board of Directors
( 20 directors)

Governor
(one)
(Chairman & full-time officer)

Deputy Governor
(four)

Directors
(fifteen)
 Contd…

Local Boards

Eastern Western Northern Southern

Region Region Region Region
(kolkata) (Mumbai) (new Delhi) (Chennai)
CONT….

The organization of RBI can be broadly

divided into three parts:-

1) Central Board of Directors.

2) Local board.

3) Offices of RBI.
Present & Past Governors

Sir Osborne A. Smith

April 1, 1935 to June 30, 1937

Dr. Manmohan Singh

September 16, 1982 to January 14,1985
Contd…..

Dr.Y.V.Reddy
Sep 5, 2003 to sep 5, 2008

Dr D. Subbarao
Sep 5, 2008 to onwards
 Administrative
department of RBI

 Department of currency management.

 Department of banking supervision.
 Rural planning and credit department.
 Department of banking operation and development.
 Exchange control department.
 Industrial & export credit department.
Contd…..

 Department of administrative & personnel management.

 Department of government & bank accounts.
 Department of Non-Banking supervision.
 Internal dept management department.
 Inspection department.
 Department of information & technology.
 Objective and reasons for the
establishment of rbi

 To manage the monetary & credit system of the country.

 To stabilize internal & external value of rupee.
 For balance & systematic development of banking in the country.
 For the development of the organized money market in the country.
 For proper arrangement of agriculture finance.
Contd……

 For proper arrangement of industrial finance.

 For proper arrangement of public debts.
 To establish monetary relations with other countries of the world
& international financial institutions.
 For centralization of cash reserves of commercial banks.
 To maintain balance between the demand and supply of currency.
ROLE OF RBI

 Issue of notes.
 Banker, Agent, & advisor to the government.
 Banker’s bank.
 Custodian of Foreign Exchange Reserve.
 Regulation of banks
 Credit control.
THANK YOU !!