SEBI

Security Exchange Board of India

SHUBHAM PRABHAT
22000605 https://youtube.com/shorts/Hx1vy7PxN1E?feature=share
 INTRODUCTION
The SEBI is a market regulator which tries to create a balance in the day to day
stock market activities. It is the most important regulator of securities markets in
India.
SEBI is the counterpart of the Securities and Exchange Commission (SEC) in the
U.S. It regulates under the ownership of Ministry of Finance within the
Government of India.
WHY NEED SEBI?
Restore the confidence of Investors.

To promote the development of securities market.

To boost capital market demands.

To prohibit Insider trading.

To prohibit fraudulent and unfair practices related

to securities market.
 WHY FOCUS ON RETAIL
INVESTORS?
• SEBI constantly form and
amend laws to protect retail
investors. A retail investor is
someone who buys and sells
equity shares, commodity
contracts, mutual funds, or
exchange trading funds
through traditional or online
brokerage firms or other
types of investments
accounts
• The retail investor • Retail investors are non-
provides capital to professionals who trade
corporations when other smaller volumes of stocks,
sources of financing seem exchange-traded funds
difficult. (ETFs), or mutual funds
for their own personal
account, using their own
money.
 FORMATION OF SEBI

 SEBI was set up on April 12, 1988 as a non statutory body.

 In 1992 – through SEBI Act – powers to control capital markets were
conferred.
 SEBI Act 1992 : “The SEBI Act,1992 provides for the establishment of a
Board 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.”
 LOCATIONS OF SEBI

• Headquarter : SEBI Bhavan BKC ; Address : Plot No.C4-A, 'G' Block Bandra-Kurla
Complex, Bandra (East), Mumbai - 400051, Maharashtra

• SEBI has Northern, Eastern, Southern and Western Regional Offices in New Delhi,
Kolkata, Chennai, and Ahmedabad respectively.

• SEBI has also opened local offices in Jaipur, Bangalore, Guwahati, Bhubaneswar, Patna,
Kochi and Chandigarh.
 MANAGEMENT OF BOARD

Chairperson 4 Whole time members

Appointed by
4 Part time members
Appointed by Central/Union  One member from RBI
Central/Union
Government of India.  One member from Ministry of Finance
Government of India.
(Central)
 One member from Administration of
Companies Act, 1956. (Ministry of
Corporate Affairs)
KEY MEMBERS OF SEBI
NAME DESIGNATION
Ms. Madhavi Puri Buch Chairman
Shri S. K. Mohanty Whole time member
Shri Anant Barua Whole time member
Shri Ashwani Bhatia Whole time member
Shri Ananth Narayan Gopalakrishnan Whole time member

Shri Ajay Seth Part time member

Shri Rajesh Verma Part time member
Shri M. Rajeshwar Rao Part time member
Dr. V. Ravi Anshuman Part time member
 OBJECTIVES OF SEBI

Protect the rights and Preventing fraud and trade

interests of the investors. malpractices.

Regulate and develop Regulating the Stock

code of conduct and fair Exchange and ensuring
practices. the orderly functioning.
 FUNCTIONS OF SEBI
 To protect the interest of Investors by preventing
Protective Functions a)Price Rigging
b)Insider Trading

 To promote and develop activities in stock exchange and increase business

in stock exchange by
a)Permitting Internet trading through registered stock brokers (Upstox, Grow,
Development Functions etc.)
b)Making underwriting options to reduce cost of issue.
c)Permitting IPO of primary market through stock exchange.

1)Regulation of Stock brokers, underwriters, sub-brokers, share transfer

agents, etc.
Regulatory Functions 2)Regulation of collective investment schemes such including Mutual Funds.
3)Regulates takeover of companies. (M&A)
 PENALTIES UNDER SEBI

• Penalty for failure to furnish information, return, etc.

• Penalty for failure by any person to enter an agreement with clients.
• Penalty for failure to redress investor’s grievances.
• Penalty for Insider trading
• Penalty for non-disclosure of acquisition of shares and take overs.
• Penalty for fraudulent and unfair trade practices.
DEPARTMENTS UNDER SEBI
 The Primary Market
 The Issue management and intermediaries department
 The Secondary Market
 Institutional investment (Mutual funds and Foreign Institutional Investors),
mergers and acquisition.
 Legal department: Looks after all legal matters.
 Investigation department: Carries out investigation and inspection.