sebii.ppt

sebii.ppt

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  Securities Exchange BoardOf India
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  INTRODUCTION • SEBI (Securitiesand Exchange board of India) was constituted on April 12,1988 as a non- statutory body. • It is an apex body to develop and regulate the stock market in India. • SEBI is the regulator for the securities market in India, originally set up by the Government of India in 1988, it acquired statutory from in 1992 with SEBI Act 1992 being passed by the Indian Parliament.
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  HEADQUTERS : Bandra KurlaComplex in Mumbai, Maharashtra, and has Northern, Eastern, Southern and Western Regional Offices in New Delhi, Kolkata, Chennai and Ahmedabad respectively. It has opened local offices at Jaipur, Bangalore Guwahati, Bhubaneswar, Patna, Kochi and Chandigarh, Chennai.  Location of SEBI
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  REASONS FOR ESTABLISHMENTOF SEBI • Started in stock market such as price rigging. • Unofficial premium on new issue. • Delay in delivery of shares. • Violation of rules and regulations of stock exchange and listing requirements. • So government of India decided to set up an agency or regulatory body known as Securities Exchange Board of India (SEBI).
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  OBJECTIVES OF SEBI •The overall objectives of SEBI are to protect the interest of investors and to promote the development of stock exchange and to regulate the activities of stock market. The objectives of SEBI are: To regulate the activities of stock exchange. To protect the rights of investors and ensuring safety to their investment.
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  To regulate anddevelop a code of conduct for intermediaries such as brokers, underwriters, etc. To prevent fraudulent and malpractices by having balance between self regulation of business and its statutory regulations. Continue....
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  FUNCTIONS OF SEBI •The SEBI performs functions to meet its objectives. To meet three objectives SEBI has three important functions. These are: 1. Protective functions. 2.Developmental functions. 3.Regulatory functions.
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  Continue.... 1. Protective Functions: Thesefunctions are performed by SEBI to protect the interest of investor and provide safety of investment. •As protective functions SEBI performs following functions: (i) It Checks Price Rigging: Price rigging refers to manipulating the prices of securities with the main objective of inflating or depressing the market price of securities. SEBI prohibits such practice because this can defraud and cheat the investors.
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  Continue.... (ii) It ProhibitsInsider trading: Insider is any person connected with the company such as directors, promoters etc. These insiders have sensitive information which affects the prices of the securities. This information is not available to people at large but the insiders get this privileged information by working inside the company and if they use this information to make profit, then it is known as insider trading, e.g., the directors of a company may know that company will issue Bonus shares to its shareholders at the end of year and they purchase shares from market to make profit with bonus issue. This is known as insider trading. SEBI keeps a strict check when insiders are buying securities of the company and takes strict action on insider trading.
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  Continue.... 2. Developmental Functions: Thesefunctions are performed by the SEBI to promote and develop activities in stock exchange and increase the business in stock exchange. Under developmental categories following functions are performed by SEBI: SEBI tries to promote activities of stock exchange by adopting flexible and adoptable approach in following way: (A) SEBI has permitted internet trading through registered stock brokers.
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  (B)SEBI has madeunderwriting optional to reduce the cost of issue. (C)Even initial public offer of primary market is permitted through stock exchange. Continue....
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  Continue.... 3. Regulatory Functions: Thesefunctions are performed by SEBI to regulate the business in stock exchange. To regulate the activities of stock exchange following functions are performed: 1.SEBI registers and regulates the working of stock brokers, sub-brokers, share transfer agents, trustees, merchant bankers and all those who are associated with stock exchange in any manner. 2.SEBI registers and regulates the working of mutual funds etc. 3.SEBI regulates takeover of the companies. 4.SEBI conducts inquiries and audit of stock exchanges.
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  SEBI Regulates SEBI Regulates Primary Market Secondary Market Mutual Fund Foreign Institutional Investment
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  Rules of SEBI 2014Companies (Issue of Global Depositories Receipts) Rules, 2014 2014 Companies (Prospectus and Allotment of Securities) Rules, 2014 2014 Companies (Share Capital and debentures) Rules, 2014 2005 Depositories (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 2005 2005 Securities Contracts (Regulations) (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 2005 2004 Securities Transaction Tax Rules, 2004 2003 Securities Appellate Tribunal (Salaries, Allowances and other Terms and Conditions of Presiding Officer and other Members) Rules, 2003
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  Continue.... 2000 Securities AppellateTribunal (Procedure) Rules, 2000 2000 Securities Contracts (Regulations) (Appeal to Securities Appellate Tribunal) Rules, 2000 1998 Depositories (Appeal to Central Government) Rules, 1998 1997 Securities Appellate Tribunal (Salaries and Allowances and other Conditions of Service of the Officers and Employees) Rules, 1997 1997 Securities Contracts (Regulations) Rules, 1957 1995 SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 1994 SEBI (Annual Report) Rules, 1994 1994 SEBI (Form of Annual Statement of Accounts and Records) Rules, 1994 1993 SEBI (Appeal to Central Government) Rules, 1993 1992 SEBI (Terms and Conditions of Service of Chairman and Members) Rules, 1992 1986 Securities Contracts (Reference to the Company Law Board) Rules, 1986
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   REGULATION &STRUCTURE OF MUTUAL FUND IN INDIA • INTRODUCTION OF MFs:- A mutual fund in India occurred in 1963, When the Government of India launched Unit Trust of India (UTI) under the direction of Akash Behl. • Mutual funds are regulated by SEBI in India. • Money markets MFs are also regulated by RBI apart from being regulated by SEBI.
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   STRUCTURE OFMFs in India  The structure of Mutual Funds in India is a three-tier one.  There are three distinct entities involved in the process –  The Sponsor :- (who creates a Mutual Fund),  Trustees & the Asset management company:- (Which oversees the fund management).
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  Continue.... AMC ( AssetManagement Company) 1. Ensure day to day management of the fund. 2. Earns investment management fee for managing fund & Capital of the AMC is contributed by the sponsor. TRUST 1. Keeps a check on the AMC. 2. Ensure that the fund is managed in best interest of investors. SPONSOR 1. Creates the Mutual fund & AMC 2. Approaches SEBI to set up mutual fund.
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  THANK YOU