my ppt on sebi

7/30/2019 my ppt on sebi

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In 1988 the Securities and Exchange board of India was

established by government of India through an Executive

Resolution and was subsequently upgraded as a fullyautonomous body (a Statutory body) in the year 1992 with

the passing of Securities and Exchange board of India act

(SEBI act) on 30th January, 1992


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SEBI head

quartered inpopular

business

district ofbandra-kurla

complex in

Mumbai.


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Shall be a body corporate with perpetual succession ancommon seal with power to acquire hold and dispose of

property.

HQ will be in Mumbai and may establish offices at other

places in India. Chairman and members of board will be appointed by

the central government.

Government can prescribe terms of offices and other

conditions of service of the board and chairman.

Primary duties of the board is to protect the interest of

the investors.


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Can undertake inspection of any books.

Issue commission for the examinations of witness of

documents.

Power to regulate or prohibit issue of prospectus. Power to prohibit manipulative and deceptive devices.

Penalties levied under the act have been enhanced.


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The Primary objective of SEBI is to promote healthyand orderly growth of the securities market and

secure investor protection. The objective of SEBI are

as follows:-

To protect the interest of investors, so that , there is a

steady flow of savings into to the capital market.

To regulate the securities market and ensure fair

practices. To promote efficient services by brokers , merchant

bankers and financial intermediaries, so that, they

become competitive and professional.


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The SEBI act 1992 has entrusted with Two functions: -

1. Regulatory functions and2. Developmental functions


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Promoting investors education.

Training of intermediaries.

Conducting research and publishing informationuseful to all market participants.

Promoting of fair practices.

Promotion of self regulatory organizations.


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Power to call periodical returns from recognized stockexchanges .

Power to compel listing of securities by public

companies.

Power to levy fees or other changes for carrying out thepurposes of regulation.

Power to call information or explanation from

recognized stock exchanges or their members.

Power to grant approval to bye-laws of recognized stock

exchanges.

Power to control and regulate stock exchanges.


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Power to direct enquiries to be made in relation to

affairs of stock exchanges or their members.

Power to make or amend bye-laws of recognized

stock exchanges.

Power to grant registration to market intermediaries

Power to declare applicability of section 17 of thesecurities contract (regulation) act 1956 in any state

or area to grant licenses to dealers


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The board shall consists of following members:-1. Chairman

2. Two members, one from amongst the officials of the

central government dealing with finance and another

from the administration of Companies Act of 1956.3. One members from amongst the officials of the reserve

bank of India.

4.

five other members of whom at least three shall be thewhole-time members to be appointed by the centralgovernment.


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Code of Conduct:- the code of conduct has to be strictlyobserved and those employees, officers, or directors ofthe company who violate the code of conduct will besubject to disciplinary action by SEBI or by the company.

Duty of officers:- every listed company has to employ acompliance officer who as to report to MD or CEO of thecompany.

Security;- confidential files should be protected and keptsecure. these pertain to all files but especially computerfiles and passwords, which are likely to have sensitiveprice information.


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Closed trading window:- every company should havea closed trading window period when no trade take

places. It should be closed period when the annualP&L and b/s have been declared, when dividendshave to be declared and amalgamations have to made.

Open trading window:- SEBI has also provided that

trading windows would open only after 24 hours ofmaking sensitive price available to the public.

Information;- to avoid insider trading practices eachlisted company has to provide sensitive information

on a continuous basis to the stock exchange. Problems:- SEBI deals with the problems faced by

the investors. These are dealt with the investorgrievance cell.


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Investor grievance are usually due to delays in

dispatch of allotment letters, refund orders,

misleading statements in advertisements or in theprospectus, delay in transfer of securities, non-

payment of interest or dividend.

These grievance are dealt with either SEBI or

department of company affairs.


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The expression 'stock market' refers to the marketthat enables the trading of company stocks (collective

shares), other securities, and derivatives. Bonds are

still traditionally traded in an informal, over-the-

counter market known as the bond market.

Commodities are traded in commodities markets, and

derivatives are traded in a variety of markets (but,

like bonds, mostly 'over-the-counter').


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Acts as sources for companies to raise money.

Clearinghouse for each transaction

Facilitates economic growth

Indicator of share prices and other assets of a

company


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Established for the purpose of assisting, regulating

and controlling business of buying, selling and

dealing in securities

Provides a market for the trading of securities toindividuals and organizations seeking to invest their

saving or excess funds through the purchase of

securities

Provides a physical location for buying and sellingsecurities that have been listed for trading on that

exchange


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Establishes rules for fair trading practices and

regulates the trading activities of its members

according to those rules Ensure transparency by providing information to the

investor and helps in intelligent decision making

about the particular stock based on information


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Visibility

Market support

Investors confidence

Increased demand for products and services

Overall increase in profitability


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Stock exchange can delist companies for a number of

reasons including :-

Merger with another company

Solvency problems Failure to comply with exchange rules


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Cross border trading

Issuers and investors are expanding their horizons

beyond their home markets Investors becoming much more demanding


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