Priya Ayare 02Shraddha Rawool 49Meena Kumari 51Amrin Fodkar 57Priyanka Kasat 58

INTRODUCTION

Securities and Exchange Board of India (SEBI) was first established in the year 1988 as a non-statutory body for regulating the securities market.

It became an autonomous body in 1992 and more powers were given through an ordinance. Since then it regulates the market through its independent powers.

ORGANIZATION STRUCTURE

The Board shall consist of the following members, namely:-

a)A chairman- Mr.U.K.Sinha

b)Two members, one from amongst the officials of the Ministry of the central government dealing with Finance and second from administration of the companies Act 1956

c)One member from amongst the officials of the Reserve Bank of India.

d)Five other members of whom at least three shall be the whole time members to be appointed by the central Government.

REASON FOR ESTABLISHMENT OF SEBI The capital market had witnessed a tremendous  growth during the

1980’s characterized by the increasing participation of the public.

This ever expanding investor population led to a variety of malpractices on the  part of companies, brokers , investment consultants and others involved in the securities market.

These malpractices and unfair trade practices have eroded investor confidence and multiplied investor  grievances 

The government and the stock exchanges were rather helpless in redressing the investors problems because of lack of proper penal provisions in the existing legislation.

Therefore it was decided to set up SEBI a separate regulatory body 

OBJECTIVES OF SEBI

FUNCTIONS

Regulation of Business In The Stock Exchanges

Registration And Regulation of the Working of Intermediaries

Registration And Regulation of the working of mutual funds

Promoting &Regulating Self- Regulatory Organizations

Prohibiting Fraudulent and Unfair Trade Practices in the Securities Market

Prohibition of Insider Trading

Promoting Investor Education and the Training of Intermediaries

Regulating acquisition of shares and take-over of companies

SEBI REGULATES

SEBIregulates

PrimaryMarket

Secondary Market

MutualFunds

Foreign InstitutionalInvestment

Primary Market

Primary market of capital market plays a significant role in helping mobilisation of capital and investment formation. Many types of intermediaries carry out this role very effectively

Secondary Market

Secondary market is a market where securities are traded after initially being offered to the public in the primary market and/or listed on the Stock Exchange. Maximum of the trading is done in the secondary market.

Mutual Fund

It’s a type collective investment that pools money from many investors to buy stocks, bonds, short-term money market instruments, and other securities

SEBI notified the regulation for the mutual fund 1993

Foreign Institution Investor

A Foreign Institutional Investor may invest only in the following :—

(a) securities in the primary and secondary markets including shares, debentures of companies unlisted, listed or to be listed on a recognized stock exchange in India;

(b) units of scheme floated by domestic mutual funds including Unit Trust of India, whether listed on a recognized stock exchange or not;

PENALTIES AND ADJUDICATION

Penalty for failure to furnish information, return.

Penalty for failure by any person to enter into agreement with clients.

Penalty for failure to redress investors grievances.

Penalty for certain defaults in case of mutual funds.

Penalty for failure to observe rules and regulation by any asset management company

Penalty for default in case of stock brokers Penalty for insider trading Penalty for fraudulent and unfair trade

practices Penalty for contravention where no separate

penalty has been provided

CURRENT UPDATES IN SEBI

Upgrade surveillance system for detecting manipulators.

Activates web based complaints redress system. 

Amends rule to check black money, tax evasion in market.

Impose Rs100 as transaction fee on MF investments.

Consent order system under review.

REGULATION BY SEBI:CASE: DECCAN-CHRONICLE HOLDINGS LTD.

SEBI allowed Deccan Chronicle Holdings Ltd to buy back 3.45 crore share or 14.17 per cent equity from the market at an estimated cost of Rs.270 crore.

This will be the second time Deccan Chronicle would come out with an offer to buy-back its shares following which equity of the promoter in the company could go upto 73.83 percent to 63.37 percent currently.

SEBI while exempting Deccan Chronicle from making the mandatory public announcement before coming out with the buy-back offer has , however , asked the company “not of seek any further exemption pursuant to any further buy-back”.

Referring to the general issue of companies buying back their own shares , SEBI order said “Repeated buy back offers by a company is not something that SEBI , as a regulator , would like to encourage .Given the fact that it would misused by entities to consolidate their holding at an expense of the company

Thank you…