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Securities and Exchange Board of India
SEBI Bhavan , Mumbai headquarters
What is sebi ?
• SEBI : Securities and Exchange Board of India 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 A , 1992.
Headquarters Established Jurisdiction Head Chairman Term Total Staff Mumbai, India 1992 India Chairman CB Bhave February 16, 2008 525
To protect the interest of Investors. To regulate the Securities Market & ensure fair practices. To promote efficient services. To facilitate an efficient mobilization & allocation of resources.
Role of SEBI in Capital Market
SEBI’s Principal Tasks To regulate the business in Stock Exchage & other Securities Market. To register & regulate the working of Capital market intermediaries. To register & regulate the working of Mutual Funds. To promote & regulate Self-regulatory Organization.
To prohibit fraudulent unfair trade practices in Security Market. To promote investors education & training to intermediaries of Capital Market. Prohibit insider training in Securities. Regulate acquisition of shares & takeover of companies. Performs others functions too.
Purpose and Aims of SEBI
• Regulating the business in the stock market and other securities market. • Registering and regulating the working of stock brokers and other intermediaries associated with the securities market. • Registering and regulating the working of collective investment schemes including mutual funds. • Promoting and regulating the self-regulatery organizations. • Prohibiting fraudulent and unfair trade practices relating to securities market. • Promoting investors’ education and training of intermediaries of securities market. • Prohibiting insider trading in securities.
The regulation of the capital markets is primarily the responsibility of the Securities and Exchange Board of India (SEBI),which is located in Mumbai. Some of the major functions of SEBI are: • SEBI is expected to regulate the business in stock exchanges and any • other securities markets. • Registering and regulating the working of collective investment schemes, • including mutual funds is a responsibility of SEBI. • SEBI is responsible for prohibiting fraudulent and unfair trade practices
• Prohibiting insider trading in securities, with the imposition of • monetary penalties, on erring market intermediaries. • Regulating substantial acquisition of shares and takeover of • companies. • Calling for information from, carrying out inspection, • conducting inquiries and audits of the stock exchanges and • intermediaries and self regulatory organizations in the securities • market. • To promote investor's education and training of intermediaries • of securities markets. • Prohibit Fraudulent and Unfair Trade Practices
Developmental Functions: Promotes investors education. Training of Intermediaries. Conducting research & published information. Promotion of Fair practices. Promoting self-regulatory organizations.
SEBI Guidelines With regard to
First Issue of New Company
Issue of Shares to public only by New Company. New Company set up by an existing Company. A draft prospectus containing disclosure will be examined by the SEBI.
Bonus Issue/Right Issue.
Bonus issue is made out of free reserve. Reserves are not capitalized. Calculation of residual value. The residual reserve should be at least 40% of increased paid-up capital. The capital reserve created will not form any part of Balance Sheet. The bonus issue is not made unless the partly paid Shares are fully paid.
Speculative Trading & Distribution of Turnover.