What is SEBI

1
What Is SEBI And Its Role In Capital Market

• SEBI acts as a guardian for the the investors and
  protect them from the unfair practices.
• SEBI full form is Securities and Exchange Board
  of India and its main function is to regulate and
  monitors the functions and working of the stock
  market so that it can protect the investors. .
• SEBI Establishment -
• Its was established as a statutory body in 1992
  because in 1980 there were tremendous amount of
  growth in the capital market which was the result
  of increased participation of the public.
• And due to this sudden increase there were alot
  of malpractices happened and to overcome these
  unfair practices and illegal things, SEBI came in
  power to regulate the market and since then it
  became the gurardian of the investors .
• At the Bandra-Kurla Complex in Mumbai, SEBI has
  its headquarters. More than a dozen local offices
  are also located in cities such as Bangalore,
  Jaipur, Guwahati, Patna, Kochi, and Chandigarh,
  as well as regional offices in New Delhi,
  Kolkata, Chennai, and Ahmedabad.

2
Functions and Responsibilities

• According to the Preamble of the Securities and
  Exchange Board of India, the Board has the
  following basic functions to protect the
  interests of investors in securities and to
  promote the development and regulation of the
  securities market as well as for matters related
  to or incidental to the securities market.
• Three groups comprise the market, and SEBI must
  respond to their needs
• issuers of securities
• investors
• market intermediaries
• SEBI combines three powers into one body
  quasi-legislative, quasi-judicial, and
  quasi-executive. In its legislative role, it
  drafts regulations, in its executive role it
  conducts investigations and enforcement actions,
  and in its judicial role it passes rulings and
  orders.
• Despite its power, it has an appeals process to
  ensure accountability. A Securities Appellate
  Tribunal is currently headed by Justice Tarun
  Agarwala, former Chief Justice of the Meghalaya
  High Court. 
• A second appeal lies directly with the Supreme
  Court. Streamlining disclosure requirements to
  international standards has been a priority for
  SEBI.

3
Role Of SEBI

• This regulatory authority acts as a watchdog for
  all the capital market participants and its main
  purpose is to provide such an environment for
  financial market enthusiasts that facilitates the
  efficient and smooth working of the securities
  market. SEBI also plays an important role in the
  economy.The SEBI's primary purpose is to monitor
  and improve the Indian capital market. In order
  to achieve this goal, the SEBI looks after the
  needs of three main financial participants
• 1). Securities issuers SEBI ensures that IPO and
  FPO issuances are conducted fairly and without
  fraudulent representations in any company listed
  on a stock exchange.
• 2). Protect Investors' Interests SEBI is
  responsible for protecting investor interests and
  preventing unfair trade practices. Protecting the
  interests of traders and investors is important
  for the survival of the market because they are
  important part of the market.Whether you are
  doing Positional Trade, BTST, STBT or investment
  , SEBI will protect you from any unfair
  practices.
• SEBI performs these functions to protect the
  interests of investors and other financial
  participants.
• It includes-
• Detecting price rigging
• Keep insiders out of the market
• Fair practices should be promoted
• Make investors aware of the issue
• Trade practices that are fraudulent and unfair
  should be prohibited
• 3). Intermediaries SEBI supervises the
  activities of financial intermediaries such as
  NBFCs, lenders, brokers, sub-brokers, etc. They
  ensure smooth and secure transactions on the
  stock market.
• Additionally, SEBI oversees and manages the
  complaint division of the recognized stock
  exchanges, dealing with investor grievances,
  investor education, and policy related to
  commodity derivatives.

4
Objectives And Structure Of SEBI

• These are some of the objectives of the SEBI
• 1). SEBI was established to protect the interests
  of investors by providing guidance and ensuring
  the safety of investments.
• 2). Keeping the stock exchange activities under
  control and preventing fraudulent practices and
  malpractices
• 3). The development of a code of conduct for
  financial intermediaries, such as underwriters
  and brokers.
• 4). Maintaining  a balance between statutory
  regulations and self regulation.
•  
• Structure Of SEBI -
• In SEBI, there are about 20 departments, each
  managed by a department head. Some of these
  departments include corporation finance, economic
  and policy analysis, debt and hybrid securities,
  enforcement, human resources, investment
  management, commodity derivatives market
  regulation, and legal affairs. 
• The SEBI board consists of nine members -
• The Central Government of India appoints the
  chairman of the board
• There is one member of the Board appointed by the
  Central Bank, namely the RBI
• Two members of the Board hail from the Union
  Ministry of Finance
• There are five members of the Board who are
  elected by the Central Government of India

5
Current Board Members
NAME Designation
Madhabi Puri Buch Chairman
S.K Mohanty Whole Time Member
Raje Prem Kumar Whole Time Member
Ajay Seth Part Time Member
Rajesh Verma Part Time Member
V Ravi Anshuman Part Time Member

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