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The Securities and Exchange Board of India (SEBI)
SEBI is a Statutory Body. The Securities and Exchange Board of India (SEBI) is the regulator for the securities market in India.
The Securities and Exchange Board of India was established on April 12, 1992 in accordance with the provisions of the Securities and Exchange Board of India Act, 1992.
SEBI has to be responsive to the needs of three groups, which constitute the market:
1) The issuers of securities
2) The investors
3) The market intermediaries.
History of SEBI
Initially SEBI was an Unstatutory Body without having Statutory Power. In 1995 SEBI was given an special Statutory Power by the Government of India under SEBI Act 1992. In 1998 SEBI was constituted as the regulator of Capital Market in India under a Resolution Passed by The Government of India
Its headquarters at the business district of Bandra Kurla Complex in Mumbai (Maharashtra), and has Northern, Eastern, Southern and Western Regional Offices in New Delhi, Kolkata, Chennai and Ahmedabad respectively. It has opened local offices at Jaipur and Bangalore.
Management of the Board
The Board shall consist of the following members, namely: -
(a) A Chairman (Nominated by Government of India)
(b) Two members from amongst the officials of the [Ministry] of the Central Government dealing with Finance
(c) One member from amongst the officials of [the Reserve Bank];
(d) Five other members of whom at least three shall be the whole-time members to be appointed by the central Government.
Chairman- AJAY TYAGI was appointed as Chairman of SEBI on April 27, 2017. He will succeed Upendra Kumar Sinha whose extended tenure ends on March 1,2017
SEBI also regulate –
- Primary Market
- Secondary Market
- Mutual Funds
- Foreign Institutional Investment (FII)
For the discharge of its functions efficiently, SEBI has been vested with the following powers:
- To approve by−laws of stock exchanges.
- To require the stock exchange to amend their by−laws.
- Inspect the books of accounts and call for periodical returns from recognized stock exchanges.
- Inspect the books of accounts of financial intermediaries.
- Compel certain companies to list their shares in one or more stock exchanges.
Role of SEBI in IPO (Initial Public offering)
- The rules and regulations related to Public Issues in India /IPO are purely governed by SEBI
- Any New Organisation / Company going public in India i.e. Selling of IPO, Should get approval from SEBI
- SEBI validate the IPO(Initial Public offering) and make sure that document has complete information to help investors to take ready decision before applying shares in an IPO
Major Department’s of SEBI
MIRSD – Market Intermediaries Regulation and supervision Department
DNPD - Derivatives and New Product Department
IVD - Investigation Department
LAD - Legal Affairs Department
IMD - Investment Management Department
ISD - Integrated Surveillance Department
MRD - Market Regulation Department
CFD - Corporation Finance Department