8LAM8LL

1he reamb|e of the keserve 8ank of Ind|a

descr|bes the bas|c funct|ons of k8I as "to
regu|ate the |ssue of bank notes and keep|ng
the reserves w|th a v|ew to secur|ng
monetary stab|||ty |n Ind|a genera||y to
operate the currency cred|t system of the
country to |ts advantage"
8LSL8vL 8Ank Cl lnulA
W 88l ls Lhe cenLral bank of Lhe counLry lL acLs as a gulde
regulaLor conLroller and promoLer of Lhe flnanclal
sysLem
W 88l was esLabllshed on Aprll 1 1933 ln accordance wlLh
Lhe provlslons of Lhe 8eserve 8ank of lndla AcL 1934
W 1he CenLral offlce of Lhe 8eserve 8ank was lnlLlally
esLabllshed ln CalcuLLa buL was permanenLly moved Lo
Mumbal ln 1937
W ur uuvvurl Subbarao ls Lhe currenL Covernor of 88l
W Managed by CenLral 8oard of ulrecLors
8rlef hlsLory
lL was sLarLed as a shareholders bank wlLh a
pald up caplLal of 3 crores
1he share caplLal was dlvlded lnLo shares of
8s 100 each fully pald whlch was enLlrely
owned by prlvaLe shareholders
lnlLlally lL was locaLed ln kolkaLa
lL moved Lo Mumbal ln 1937
lnlLlally lL was prlvaLely owned
ConL
Slnce 1949 Lhe reserve bank ls fully owned by
CovernmenL of lndla
llrsL governor Slr Csborne A SmlLh
(Aprll 1 1933 Lo !une 30 1937)
1he flrsL lndlan governor
Slr ChlnLaman u ueshmukh"
(AugusL 11 1943 Lo !une 30 1949 )
CrganlzaLlon of 88l
W CenLral 8oard
W Local 8oard
CenLral 8oard
W 1he 8eserve 8anks affalrs are governed by a
cenLral board of dlrecLors 1he board ls appolnLed
by Lhe CovernmenL of lndla ln keeplng wlLh Lhe
8eserve 8ank of lndla AcL
W AppolnLed/nomlnaLed for a perlod of four years
W ConsLlLuLlon
ff|c|a| D|rectors
W lullLlme Covernor and noL more Lhan four uepuLy
Covernors
ConL
-onff|c|a| D|rectors
W nomlnaLed by CovernmenL Len ulrecLors from
varlous flelds and one governmenL Cfflclal
W CLhers four ulrecLors one each from four
local boards
W unct|ons Ceneral superlnLendence and dlrecLlon
of Lhe 8anks affalrs
Local 8oards
Cne each for Lhe four reglons of Lhe counLry ln
Mumbal CalcuLLa Chennal and new uelhl
,embersh|p
W conslsL of flve members each
W appolnLed by Lhe CenLral CovernmenL
W for a Lerm of four years
luncLlons of Lhe Local 8oard
W 1o advlse Lhe CenLral 8oard on local maLLers
and Lo represenL LerrlLorlal and economlc
lnLeresLs of local cooperaLlve and lndlgenous
banks
W 1o perform such oLher funcLlons as delegaLed
by CenLral 8oard from Llme Lo Llme
Cfflces and branches
W 1he 8eserve 8ank of lndla has 4 reglonal
offlces13 branches and 3 subofflces
W Pas branch off|ces mosL of Lhem ln sLaLe
caplLals
88l 1ralnlng LsLabllshmenLs
W as s|x tra|n|ng estab||shments
W 1hree namely College of AgrlculLural 8anklng
8ankers 1ralnlng College and 8eserve 8ank of
lndla SLaff College are parL of Lhe 8eserve 8ank
W CLhers are auLonomous such as naLlonal
lnsLlLuLe for 8ank ManagemenL lndlra Candhl
lnsLlLuLe for uevelopmenL 8esearch (lClu8)
lnsLlLuLe for uevelopmenL and 8esearch ln
8anklng 1echnology (lu881)
roducLs and Servlces
W nonlnLeresL earnlng currenL accounLs
W ueposlL AccounL ueparLmenL
W 8emlLLance faclllLles
W Lender of Lhe lasL resorL
W Loans and advances
8ole and luncLlons of 88l
W noLe lssulng AuLhorlLy
W CovernmenL 8anker
W 8ankers' 8ank Lender of lasL resorL
W Supervlsor of Lhe 8anks
W 8egulaLor of money and credlL
W lorelgn Lxchange conLrol and managemenL
W romoLer of llnanclal SysLem
Money MarkeL
AgrlculLural SecLor
lndusLrlal llnance
lormulaLlng rudenLlal norms
W 8esearch knowledge and uaLa Sharlng
rohlblLory luncLlons of 88l
W 88l cannoL provlde and dlrecL flnanclal
asslsLance Lo any lndusLry Lrade or buslness
W lL cannoL purchase lLs own share
W lL cannoL purchase shares of any commerclal
and lndusLrlal underLaklng
W lL cannoL purchase any lmmovable properLy
W lL cannoL glve loans on Lhe securlLy of shares
and properLy
uenomlnaLlons of noLes and Colns ln
clrculaLlon
MoneLary ollcy
W MoneLary pollcy refers Lo Lhe use of offlclal
lnsLrumenLs under Lhe conLrol of cenLral bank Lo
regulaLe Lhe avallablllLy cosL and use of money
and credlL
W 1he ob[ecLlves of MoneLary ollcy are
1o acceleraLe economlc developmenL ln an
envlronmenL of reasonable prlce sLablllLy opLlmum
level of ouLpuL and employmenL balance of paymenL
equlllbrlum eLc
1o develop approprlaLe lnsLlLuLlonal seLup Lo ald Lhe
process
1he measures/1echnlques of CredlL
ConLrol
W CuanLlLaLlve CredlL ConLrol
W SelecLlve CredlL ConLrol
CuanLlLaLlve CredlL ConLrol
;uant|tat|ve
Cred|t Contro|
8ank kate
Cash
keserve
kat|o
Statutory
L|qu|d|ty
kat|o
pen
,arket
perat|ons
D|rect
Cred|t
A||ocat|on
and Cred|t
kat|on|ng
ollcy 8aLes
W 8ank 8aLe 6
W 8epo 8aLe 823
W 8everse 8epo 8aLe 723
W Cash 8eserve 8aLlo 6
W SLaLuLory LlquldlLy 8aLlo 24
W Savlng 8ank raLe 23 Lo 4
SelecLlve CredlL ConLrols
llxaLlon and
Marglnal
8equlremenL
llxaLlon and
Marglnal
8equlremenL
CredlL
AuLhorlzaLlon
Scheme
CredlL
AuLhorlzaLlon
Scheme
llxaLlon of
lnvenLory and
CredlL norms
llxaLlon of
lnvenLory and
CredlL norms
CredlL
lannlng
CredlL
lannlng
Moral Suaslon Moral Suaslon
SecurlLles and Lxchange 8oard of lndla

seblgovln
Establishment
In 1988 the Securities and Exchange Board oI India (SEBI)
was established by the Government oI India through an
executive resolution, and was subsequently upgraded as a Iully
autonomous body (a statutory Board) in the year 1992 with the
passing oI the Securities and Exchange Board oI India Act
(SEBI Act) on 30th January 1992.
PREAMBLE
The Preamble oI the Securities and Exchange Board oI India
describes the basic Iunctions oI the Securities and Exchange
Board oI India as
~...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
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rganization`s Structure
The Board shall consist oI the Iollowing members, namely:-
a) a Chairman
b) Two members, ne Irom amongst the oIIicials oI the
Ministry oI the Central Government dealing with Finance
and second Irom administration oI the Companies Act,
1956.
c) ne member Irom amongst the oIIicials oI the Reserve
Bank oI India.
d) Five other members oI whom at least three shall be the
whole-time members to be appointed by the central
Government .
The Board shall consist oI the Iollowing members, namely:-
a) a Chairman
b) Two members, ne Irom amongst the oIIicials oI the
Ministry oI the Central Government dealing with Finance
and second Irom administration oI the Companies Act,
1956.
c) ne member Irom amongst the oIIicials oI the Reserve
Bank oI India.
d) Five other members oI whom at least three shall be the
whole-time members to be appointed by the central
Government .
Management of the Board
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Current board members
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CurrenL board members
conLlnue
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CurrenL board members
conLlnue
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bjectives oI SEBI
The primary objective oI SEBI is to promote
healthy and orderly growth -oI the securities
market and secure investor protection. The
objectives oI SEBI are as Iollows:
W To protect the interest oI investors, so that, there is
a steady Ilow oI savings into the capital market.
W To promote the development oI capital market
where companies can raise Iunds at a low cost.
W To regulate the securities market and ensure Iair
practices.
W To promote eIIicient services by brokers,
merchant bankers, and other intermediaries, so
that, they become competitive and proIessional.
seblgovln
Functions of SL8l
The SEBI Act, 1992 has entrusted with
three Iunctions, they are
Protective Iunctions
Regulatory Iunctions And
Developmental Iunctions
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Protective Iunctions
W Protection against Iraudulent & unIair
trade practices.
W Prohibition oI insider trading
W Protection oI debenture holders`
interest
W Stoppage oI misuse or preIerential
allotment
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Regulatory luncLlons
W Regulation oI business
W Regulation oI working oI
intermediaries
W Regulation oI collective investment
scheme
W Regulation oI takeovers and mergers
W Regulation oI stock exchanges
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uevelopmenLal luncLlons
W Education and training
W Development oI capital market
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owers of SL8l
W Power to call periodical returns Irom recognized
stock exchanges.
W Power to compel listing oI securities by public
companies.
W Power to levy Iees or other charges Ior carrying
out the purposes oI regulation.
W Power to call inIormation or explanation Irom
recognized stock exchanges or their members.
W Power to grant approval to bye-laws oI recognized
stock exchanges.
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owers of SL8l conLlnue
W Power to control and regulate stock exchanges.
W Power to direct enquiries to be made in relation to
aIIairs oI stock exchanges or their members.
W Power to make or amend bye-laws oI recognized
stock exchanges.
W Power to grant registration to market intermediaries.
W Power to declare applicability oI Section 17 oI the
Securities Contract (Regulation) Act 1956, in any
State or area, to grant licenses to dealers in
securities.
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SL8l CenLral CovL
The Central Government has power to issue
directions to SEBI Board, supersede the Board, iI
necessary and to call Ior returns and reports as and
when necessary. The Central Government has also
power to give any guideline or to make regulations
and rules Ior SEBI and its operations.
The activities oI SEBI are Iinanced by grants Irom
Central Government, in addition to Iees, charges
etc. collected by SEBI. The Iund called SEBI
General Fund is set up, to which, all Iees, charges
and grants are credited. This Iund is used to meet
the expenses oI the Board and to pay salary oI staII
and members oI the body.
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