SEBI
(Securities and Exchange Board of India) was initially
constituted on April 12, 1988 as a nonstatutory body
through a resolution of the Government for dealing with
all matters relating to development and regulation of
securities market and investor protection and to advise
the Government on all these matters. SEBI was given
statutory status and powers through an ordinance
promulgated on January 30, 1992.
The statutory powers and functions of SEBI were
strengthened through the promulgation of the Securities
Laws (Amendment) ordinance on January 25, 1995 which was
subsequently replaced by an Act of Parliament. In terms of
this Act, SEBI has been vested with regulatory powers over
corporates in the issuance of capital, the transfer of
securities and other related matters. Besides, SEBI has
also been empowered to impose monetary penalties on
capital market intermediaries and other participants for a
range of violations.
SEBI is managed by six members—one chairman (nominated by
Central Government), two members (officers of central
ministries), one member (from RBI) and remaining two
members are nominated by Central Government. The office of
SEBI is situated at Mumbai with its regional offices at
Kolkata, Delhi and Chennai. In 1988 the initial capital of
SEBI was Rs. 7•5 crore which was provided by its promoters
(IDBI, ICICI, IFCI). This amount was invested and with its
interest amount day-to-day expenses of SEBI are met. All
statutory powers for regulating Indian capital market are
vested with SEBI itself.
Functions of SEBI
To safeguard the interests of investors and to regulate
capital market with suitable measures.
To regulate the business of stock exchanges and other
securities market.
To regulate the working of Stock Brokers, Sub-brokers,
Share Transfer Agents, Trustees, Merchant Bankers,
Underwriters, Portfolio Managers etc. and also to make
their registration.
To register and regulate collective investment plans of
mutual funds.
To encourage self-regulatory organisations.
To eliminate malpractices of security markets.
To train the persons associated with security markets and
also to encourage investors' education.
To check insider trading of securities.
To supervise the working of various organisations trading
in security market and also to ensure systematic dealings.
To promote research and investigations for ensuring the
attainment of above objectives.
SEBI
(Securities and Exchange Board of India) was initially
constituted on April 12, 1988 as a nonstatutory body
through a resolution of the Government for dealing with
all matters relating to development and regulation of
securities market and investor protection and to advise
the Government on all these matters. SEBI was given
statutory status and powers through an ordinance
promulgated on January 30, 1992.
