Ppt on SEBI by Shashank Vashist

8/3/2019 Ppt on SEBI by Shashank Vashist

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Presented by :-

Shashank vashist

PGDM

3rd sem


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ESTABLISHMENT

12th April 1988.

Statutory recognition on 31st January

1992, by an ordinance of thepresident of India.

Established as a surveillance body.


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OBJECTIVES

Protect the interest of investors in securities. Promote the development of capital market by

ensuring flow of saving in it. Promote development of the securities market

with the reasonable regulation thereof. Facilitates companies to raise their finances atminimum cost along with fair practices.

Prohibit insider trading in securities. Restrict transaction pertaining to acquisition of

shares & take over of companies. Impose monetary penalties on capital marketintermediaries & other participants for a rangeof violations.

Exercises the power as may be delegated to itby the government.


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Function of SEBI

Regulating the business in stock exchangeand any other securities market

Registering and regulating the workings of

intermediaries associated with securitiesmarket

Registering and regulating the working ofcollective investment schemes includingmutual funds

Promoting and regulating self-regulatoryorganizations


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Cont.

. Promoting investors education andtraining of intermediaries in securitiesmarket

Prohibiting insiders trading insecurities

Regulating substantial acquisition of

shares and take-over of companiesCalling for information, undertakinginspection, conducting enquiries andaudits of the stock exchanges,

intermediaries and self-regulatory


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Organization of SEBI

Departments

Primary Mkt. dept.

Issue Mgt. & Intermediaries Dept.

Secondary Mkt. dept.

Institutional Invt.Advisory

Committees

Departments


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SEBI Regulates.

SEBI

regulates

Primary

Market

Secondary

Market

Mutual

Funds

ForeignInstitutional

Investment


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SEBI & Primary Market

Measures undertaken by SEBI:-

Entry norms

Promoters contribution

Disclosure

Book building

Allocation of shares

Market intermediaries


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Conti..

1. Entry normsa) Track record of dividend payment for minimum

3 yrs preceding the issue.b) Already listed companies - when post-issue

networth becomes more than 5 times the pre-issue networth

c) For Manufacturing company not having suchtrack recordappraise project by a publicfinancial institution or a scheduled commercialbank.

d) For corporate body5 public shareholders forevery Rs.1 lakh of the net capital offer made tothe public

e) Banks2 yrs of profitability for issues abovepar.

Offer documents to companies.


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Conti..

2. Promoterscontribution

Should not be less than 20% of the issuedcapital.

Receiving of promoters contribution.

Lock in period as per SEBI.

Cases of non-under written public issues.

3. Disclosure

draft prospectusUn audited financial results


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Conti..

4.Book buildingSEBI recommends two-tier under writing system

One of the mode of public issue thru prospectus.

Role of syndicate members and book runners.

Minimum 30 centers.5. Allocation of shares

Minimum application of shares

Reservation for small investors

Allotment of securities


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Conti..

6. Market intermediariesLicensing of merchant bankers

Licensing of underwriters, registrars, transferagents, etc.,

Merchant bankers net worthRs.5 croresSegregate fund based from fee based activities.


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SEBI & Secondary Market

Reforms in the secondary market:-

1. Governing board

2. Infrastructure3. Settlement & clearing

4. Debt market

5. Price stabilization


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Conti..

1. Governing board

Brokers and non-brokers representation made50:50

60% of brokers in arbitration, disciplinary &default committees

For trading members 40% representation

2. Infrastructure

On-line screen based trading terminals


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Conti..

3. Settlement & clearing

Weekly settlements

Auctions for non-delivered shares within 80days of settlement

Advice to set up clearing houses, clearingcorporation or settlement guarantee fund

Warehousing facilities permitted by SEBI.


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Conti..

4. Debt market segment

Regulates thru SEBI (depository & participants)regulation Act 1996.

Listing of debt instruments

Invt. Range for FIIs

Dual rating for above Rs.500 million


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Conti..

5. Price stabilizationDivision to monitor the unusual movements inprices.

Monitor prices of newly listed scrip from the firstday of trading.

Circuit breaker system and other monitoringrestrictions could be applied

Imposing of special margins of 25% on purchasein addition to regular margin.

Price filtersPrice bands


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ADVANTAGES

Fair deals to investors , informedchoices & decision.

Regulating malpractices of companymanagement.

Builds investors confidence insecurities through efficient , orderly &

clean markets.


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Ppt on SEBI by Shashank Vashist

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