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Securities and Exchange Board OfIndiaFlow of PresentationHistoryEstablishmentFunctions PowersContributionsPenaltyRegulationsRTI and SEBISahara caseHistoryEstablished by Theo!ernment of India on "#ril $%&$'(( through an administrati!e orderIn $'(( the SEBI was constituted as the regulator of ca#ital mar)ets in IndiaHead*uarters at the business district ofBandra +urla Com#le,in-umbaiChairman . /#endra +umar SinhaInitially SEBI was a non statutory body It became a statutory and really #owerful organisation only since $''%The CIC" 0Ca#ital Issues Control "ct&$'123 was re#ealed and the o4ce of the CCI 0Controller of Ca#ital Issues3 was abolished in $''% and the SEBI was set u# on %$ February $''% through an ordinance issued on 56 7anuary $''%Certain #owers under SCR"0Securities Contracts Regulation "ct&$'893 and C" 0Com#anies "ct&$'893were delegated to SEBIThe regulatory #owers of SEBI were increased through the Securities :aws 0"mendment3 ;rdinance of 7anuary $''8 which was subse*uently re#laced by the "ct of ParliamentSEBI is under the o!erall control of the -inistry of FinanceIt has now become a !ery im#ortant constituent of the It consists of ?." chairman a##ointed by the go!ernmnentTwo members from amongst o4cials of the ministry of o!ernment of India dealing with Prohibits fraudulent and /nfair Trade Practices SEBI has sto##ed the #ractice of ma)ing #referential allotment of shares unrelated to mar)et #rices>SEBI has issued guidelines to #rotect the interest of debenture.holders wherein com#anies cannot change terms in midterm> Developmental Functions To #romote and de!elo# acti!ities in stoc) e,change and increase the business in stoc) e,changetraining of intermediaries of the securities mar)et>SEBI has #ermitted internet trading through registered stoc) bro)ers>Initial #ublic o=er of #rimary mar)et is #ermitted through stoc) e,change> Regulatory Functions To regulate the business in stoc) e,change and To regulate the acti!ities of stoc) e,change>SEBI has framed rules and regulations and a code of conduct to regulate the intermediaries such as merchant ban)ers& bro)ers& underwriters& etc SEBI registers and regulates the wor)ing of stoc) bro)ers& sub.bro)ers& share transfer agents& trustees& merchant ban)ers and all those who are associated with stoc) e,change in any manner>Promoting and Regulating Self Regulatory ;rganiFationsPromoting In!estors education and training of intermediaries of securities mar)etRegistering and Regulating wor)ing of !enture ca#ital funds and collecti!e in!estment schemes including mutual fundsRegulating ac*uisition of shares and ta)eo!er of com#aniesPowersRegulating the business in stoc) e,changes and any other securitiesmar)etsRegistering and regulating the wor)ing of stoc) bro)ers& subGbro)ers etc>Promoting and regulating self.regulatory organiFationsProhibiting fraudulent and unfair trade #racticesCalling for information /nderta)ing ins#ection Conducting in*uiries and audits of the stoc) e,changes& intermediaries& self.regulatory organiFations& mutual funds and other #ersons associated with the securities mar)et> C;ETRIB/TI;E Issue of guidelines i> Bring trans#arency ii> "!oiding e,#loitation of in!estors Public interest ad!ertisements i> To enlighten in!estors on the basic features of !arious instruments and minimum #recautions they should ta)e before choosing an in!estment> ii> To Create awareness among in!estors about their rights> Dealing with com#laints of in!estors? The in!estors can ma)e com#laints to SEBI if they face #roblems relating to their in!estment in industrial securities and

In!estor sur!eys? SEBI has also conducted sur!eys in res#ect of in!estment and o##ortunities for the bene Penalties on Intermediaries Failures to furnish Information and ReturnFor failure to furnish any document& return or re#ort G #enalty of Rs $la)h for each day or Rs$crore 0whiche!er is :ower3Failure to enter into agreement with clients. By a registered intermediary G #enalty of Rs $la)h each day or Rs$crore 0whiche!er is :ower3Failure to redress In!estorHs rie!ance. By a registered intermediary G #enalty of Rs $la)h each day or Rs$crore 0whiche!er is :ower3Failure by an asset management com#any. "ny failure to obser!e rules and regulations #ro!iding restriction on its acti!ities. #enalty of Rs $la)h each day or Rs$crore 0whiche!er is :ower3For indulgence in Fraudulent and unfair trade #ractices relating to securities& Rs%8crore or 5 times the amount of #roIt all started with Sahara Prime City& a real estate !enture of the grou#& During the same month& "#ril %6$5& SEBI