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BY- Tanishka Goel

Roll No- 27
MBA 2.3
 INTRODUCTION
SEBI (Securities and Exchange board of India) was
constituted on April 12,1988 as a non- statutory
body.

 It is an apex body to develop and regulate the

stock market in India.

 SEBI is the regulator for the securities market in

India, originally set up by the Government of India in
1988, it acquired statutory from in 1992 with SEBI
Act 1992 being passed by the Indian Parliament.
 OBJECTIVES
 The overall objectives of SEBI are to protect
the interest of investors and to promote the
development of stock exchange and to
regulate the activities of stock market.
The objectives of SEBI are:

 To regulate the activities of stock exchange.

 To protect the rights of investors and

ensuring safety to their investment.
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 To regulate and develop a code of conduct
for intermediaries such as brokers,
underwriters, etc.

 To prevent fraudulent and malpractices by

having balance between self regulation of
business and its statutory regulations
 FUNCTIONS OF SEBI
 The SEBI Act, 1992 has entrusted with two
functions, they are
1. Regulatory functions
2. Developmental functions 
 1.Regulatory functions
 Regulation of stock exchange and self
regulatory organizations.

 Registration and regulation of stock brokers,

sub-brokers, Registrars to all issues, merchant
bankers, underwriters, portfolio managers etc.

 Registration and regulation of the working of

collective investment schemes including
mutual funds.
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 Regulating substantial acquisition of shares
and takeover of companies.

 Prohibition of insider trading

 Prohibition of fraudulent and unfair trade

practices relating to securities market.
 2. Developmental functions
 Promoting investor’s education.

 Training of intermediaries.

 Conducting research and publishing

information useful to all market participants.
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 Promotion of fair practices.

 Promotion of self regulatory organizations 

 POWERS
 Power to call periodical returns from
recognized stock exchanges.

 Power to compel listing of securities by public

companies.

 Power to levy fees or other charges for

carrying out the purposes of regulation.
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 Power to call information or explanation from
recognized stock exchanges or their
members.

 Power to grant approval to bye-laws of

recognized stock exchanges. 
 Case Study

Harshad Mehta Scam

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