SHRI GULAB RAI MONTESSORI PUBLIC
SCHOOL BAREILLY
ACKNOWLEDGEMENT
PROJECT ON SEBI (The
Securities and Exchange Board of India)
ESTABLISHMENT OF
SEBI
The Securities and Exchange Board of India
was established as a statutory body in the year
1992 and the provisions of the Securities and
Exchange Board of India Act, 1992 (15 of 1992)
came into force on January 30, 1992.
MEANING OF SEBI
THE SECURITIES AND EXCHANGE BOARD OF INDIA
(SEBI) IS THE MOST IMPORTANT REGULATOR OF
SECURITIES MARKETS IN INDIA. SEBI IS THE
COUNTERPART OF THE SECURITIES AND EXCHANGE
COMMISSION (SEC) IN THE U.S. ITS STATED
OBJECTIVE IS “TO PROTECT THE INTERESTS OF
INVESTORS IN SECURITIES AND TO PROMOTE THE
DEVELOPMENT OF, AND TO REGULATE THE
SECURITIES MARKET AND FOR MATTERS CONNECTED
THEREWITH OR INCIDENTAL THERETO.”
CHAIRPERSON OF SEBI
STRUCTURE OF SEBI
• SEBI board comprises nine members. The Board consists of the following
members.
1.One Chairman of the board who is appointed by the Central Government of
India.
2.One Board member who is appointed by the Central Bank, that is, the RBI.
3.Two Board members who are hailing from the Union Ministry of Finance.
4.Five Board members who are elected by the Central Government of India.
FEATURES OF SEBI
SEBI IS AN ORGANIZATION THAT IS RESPONSIBLE FOR MAINTAINING AN ENVIRONMENT THAT IS FREE FROM MALPRACTICES TO
RESTORE THE CONFIDENCE OF THE GENERAL PUBLIC WHO INVEST THEIR HARD-EARNED MONEY IN THE MARKET. SEBI CONTROLS
THE BYLAWS OF EVERY STOCK EXCHANGE IN THE COUNTRY. SEBI KEEPS AN EYE ON ALL THE BOOKS OF ACCOUNTS RELATED TO
THE STOCK EXCHANGE AND FINANCIAL INTERMEDIARIES TO CHECK THEIR IRREGULARITIES. THE FEATURES OF THE SECURITY AND
EXCHANGE BOARD OF INDIA ARE GIVEN BELOW:
•QUASI-JUDICIAL
SEBI IS ALLOWED TO CONDUCT HEARINGS AND CAN PASS JUDGMENTS ON UNETHICAL CASES AND FRAUDULENT TRADE
PRACTICES.
•QUASI-LEGISLATIVE
SEBI IS ALLOWED TO DRAFT LEGISLATURES WITH RESPECT TO THE CAPITAL MARKET. SEBI DRAFTS RULES AND REGULATIONS TO
PROTECT THE INTERESTS OF THE INVESTORS.
•QUASI-EXECUTIVE
SEBI COVERS THE IMPLEMENTATION OF THE LEGISLATION. THEY ARE ALLOWED TO FILE A COMPLAINT AGAINST ANY PERSON
WHO VIOLATES THEIR RULES AND REGULATIONS. THEY ALSO HAVE THE POWER TO INSPECT ALL THE BOOKS AND RECORDS TO
CHECK FOR WRONGDOINGS.
FUNCTIONS OF SEBI
SEBI has the following functions
1. Protective Function
The protective function implies the role that SEBI plays in protecting the
investor interest and also that of other financial participants.
2. Regulatory Function
Regulatory functions involve establishment of rules and regulations for the
financial intermediaries along with corporates that helps in efficient
management of the market.
3. Development Function
Developmental function refers to the steps taken by SEBI in order to provide
the investors with a knowledge of the trading and market function.
CONCLUSION
• SO, SEBI STRONGLY BELIEVES THAT THE INVESTORS ARE THE
SOUL OF THE SECURITIES MARKET AND THEY NEED TO
PROTECT THE INTERESTS OF INVESTORS FOR THE
DEVELOPMENT OF THE CAPITAL MARKET. SEBI DEALS WITH ALL
THE POLICIES AND REGULATIONS OF THE MARKET. SEBI ALSO
SIGNED A CONTRACT WITH THE INTERNATIONAL
ORGANIZATION OF SECURITIES COMMISSION AND ALLOWED
ITS MEMBERS TO MAINTAIN A REGULAR CHECK FOR CROSS
BORDER MISCONDUCT IN THEIR RESPECTIVE JURISDICTIONS
THANK YOU
