SEBI & STOCK EXCHANGES

SEBIESTABLISMENTIn 1988 the securities and exchange board of India was established by government of India through an executive resolution and was subsequently upgraded as a fully autonomous 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.SEBI head quartered in popular business district of bandra-kurla complex in Mumbai

Salient features of SEBI act 1992Shall be a body corporate with perpetual succession and common 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.Amendments 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.

Objectives of SEBIThe primary objective of SEBI is to promote healthy and 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.Functions of SEBI The SEBI act 1992 has entrusted with two functions they areRegulatory functions and Developmental functions

Regulatory functionsRegulation of stock exchanges and self regulatory organizations. Registration and regulation of stock brokers , sub-brokers , registrars of all issues, merchant bankers, underwriters, portfolio managers..etcRegistration and regulation of the working of collective investment schemes including mutual funds.Prohibition of fraudulent and unfair trade practices relating to securities market.Prohibiting of insider trading.Regulating substantial acquisition of shares and takeovers of the company.Developmental functionsPromoting investors education.Training of intermediaries.Conducting research and publishing information useful to all market participants.Promoting of fair practices.Promotion of self regulatory organizations.

9Powers of SEBIPower to call periodical returns from recognized stock exchanges .Power to compel listing of securities by public companies.Power to levy fees or other changes for carrying out the purposes 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.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 the securities contract (regulation) act 1956 in any state or area to grant licenses to dealers Structure of SEBIthe board shall consists of following members:-ChairmanTwo members, one from amongst the officials of the central government dealing with finance and another from the administration of companies act of 1956.One members from amongst the officials of the reserve bank of india.five other members of whom atleast three shall be the whole-time members to be appointed by the central government.