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SECURITIES AND EXCHNGE

BOARD OF INDIA

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PRESENTED BY

1.CHANDRA SHEKHAR BHOI

2.DEENANATH SAHU

3.BRIJENDRA KAUSHIK

4.VIRENDRA YADAW

5.NIKHIL SAHU

6. DEEPAK TAMBOLI

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INTRODUCTION

SEBI has been set up under the SEBI act to

(i) protect the interest of the investors insecurities and

(ii) promote the development of, and

regulate, the securities market

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ORIGIN OF SEBI

The government of India set up the Securities andExchange Board of India (SEBI) on 12 April, 1988.

(i) Collect information and advise the

governmenton matters relating to capital markets;

(ii) See to the licensing and regulation ofmerchant

banks, mutual funds etc;

(iii) Prepare the legal drafts for regulatory and

developmental roles of SEBI.

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ESTABLISHMENT OF SEBI

The SEBI is a body corporate. It consists of

(i) A chairman appointed by the Government.

(ii) Two members from amongst officials of the

Ministry of Government of India dealing with

finance and administration of theCompanies

appointed by the Government.

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(iii) One member from amongst the officials of,

and nominated by the RBI.

(iv) Five members of whom at least two should

be whole time members nominated by the

Government.

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DEFINITIONS

Board

Chairman

Existing Securities and Exchange Board

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Fund

Member

Notification

Securities

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OBJECTIVES OF SEBI

Investor protection

Ensuring the fair practices by the issuers of securities,namely, companies so that they can raise resourcesat least cost.

Promotion of efficient services by brokers, merchantbankers and other intermediaries so that theybecome competitive and professional.

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ORGANIZATION OFSEBI

Primary Market Department

Issue Management Intermediaries Department

Secondary Market Department

Institutional Investment Department

Advisory Committee

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DEENANATH SAHU

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FUNCTIONS OF SEBI

Section 11 of the SEBI Act, 1992 gives the functions to be

performed by the Board. The important functions can be classified

as:

1. Regulatory Functions.

2. Developmental Functions.

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1. Regulatory Functions.

o Registration of brokers and sub-brokers and other players in the marketsuch as share transfer agents, bankers to an issue, trustees of trust

deeds,

o Registration and regulation of collective investment schemes and mutual

funds.

o Regulation of stock exchange and other self-regulatory organisations.

o Prevent fraudulent and unfair trade practices relating to securities

market.

o Control insider trading and takeover bids and impose penalties for such

practices.

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POWERS DELEGATED TO SEBI UNDER SECURITIES

CONTRACTS (REGULATION) ACT, 1956

o Call for periodical returns from stock exchanges.

o Grant approval to any recognised stock exchange to make by-laws for

the regulation on control of contracts.

o Compel a public company to list its shares in any stock exchange.

o Licensing of dealers in securities in certain areas.

o Appoint any person to make enquiries into the affairs of stock

exchange.

o Suspend business of any recognised stock exchange.

o Prohibit contracts in certain cases.

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PENALTIES AND ADJUDICATION

A. Penalty for failure to furnish information, return, etc. - If anyperson, who is required under this Act or any rules or regulations made there

under-

To furnish any document, return or report to the Board, fails to furnish the

same, he shall be liable to a penalty of one lakh rupees for each day during

which such failure continues or one crore rupees, whichever is less for a

penalty not exceeding one lakh and fifty thousand rupees for each such

failure.

Fail to file furnish within the time specified.

Fails to maintain books of accounts or records.

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B. Penalty for failure by any person to enter into agreement

with clients.

C. Penalty for failure to redress investors' grievances.

D. Penalty for certain defaults in case of mutual funds

o without obtaining certificate of registration

o fails to comply with the terms and conditions of certificate of registration,

he shall be liable to a penalty

o fails to make an application for listing of its schemes as provided for in the

regulations governing listing

o Registered as a collective investment scheme including mutual funds fails to

despatch unit certificates of any scheme in the manner provided in theregulation governing such despatch

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E. Penalty for failure in case of stock brokers.-

o Fails to issue contract notes in the form and in the manner specified by the

stock exchange of which such broker is a member

o Fails to deliver any security or fails to make payment of the amount due to the

investor in the manner within the period specified in the regulations

o Charges an amount of brokerage which is in excess of the brokerage specifiedin the regulations

F. Penalty for insider trading. - If any insider who,-

o Either on his own behalf or on behalf of any other person, deals in securitiesof a body corporate listed on any stock exchange on the basis of any

unpublished price sensitive information

o Communicates any unpublished price

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G. Penalty for fraudulent and unfair trade practices.-

H. Power to adjudicate.-

o For the purpose of adjudging under sections 15A, 15B, 15C, 15D, 15E, 15F,

15G, [15H, 15HA and 15HB] ,the Board shall appoint officers

o While holding an inquiry, the adjudicating officer shall have power to

summon and enforce the attendance of any person acquainted with the facts

and circumstances of the case to give evidence or to produce any document

which in the opinion of the adjudicating officer

I. Factors to be taken into account by the adjudicating officer.-While adjudging quantum of penalty under section 15 I, the adjudicating officer

shall have due regard to the following factors,

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I. Factors to be taken into account by the adjudicating officer.- Whileadjudging quantum of penalty under section 15 I, the adjudicating officer shall have due

regard to the following factors,

o The amount of dis proportionate gain or unfair advantage

o The amount of loss caused to an investor or group of investors

o The repetitive nature