Security And Exchange Board (SEBI)

Security and exchange board of India Securities Market Regulatory Body in India Anand Kumar (DM08009) Avinash kumar (DM08017) Ruchi pathak (IB08053) Seema pandey (IB08032)

SEBI Bhavan, Mumbai Headquarters of SEBI

Content Introduction Preamble About chairperson Board members Function of the board Function of SEBI Role of SEBI in global meltdown

Content Hierarchy of SEBI SEBI with NRIs Grievance handling Types of grievances Listing Basic requirement for listing Steps of listing

INTRODUCTION SEBI is the Regulator for the Securities Market in India. Originally set up by the Government of India in 1988, it acquired statutory form in 1992 with SEBI Act 1992 being passed by the Indian Parliament.Chaired by C B Bhave, SEBI is headquartered in the popular business district of Bandra-Kurla complex in Mumbai, and has Northern, Eastern, Southern and Western regional offices in New Delhi, Kolkata, Chennai and Ahmedabad.

Preamble “…..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”

Mr. P Chidambram with bull statue

ABOUT CHAIRPERSON Chandrasekhar Bhaskar Bhave is the 6 th chairman of the Securities Market Regulator. Prior to taking charge as Chairman SEBI, he had been the chairman of NSDL (National Securities Depository Limited) ushering in paperless securities. Prior to his stint at NSDL, he had served SEBI as a Senior Executive Director. He is a former Indian Administrative Service officer of the 1975 batch.

Board members The board comprises of : Mr. CB Bhave - Chairman , SEBI Mr. KP Krishnan - Joint secretary, ministry of finance Mr. Anurag goel - Secretary, ministry of corporate affairs Dr. G Mohan Gopal -Director, national judicial academy, Bhopal

Contd. Mr. M S sahoo - Whole time member SEBI Dr. K M Abraham - Whole time member SEBI Mr. Mohandas pai - Director, infosys Mr. Prashant saran - Whole time member SEBI

Functions Of The Board The Board is responsible for the securing the interests of investors in securities and to facilitate the growth of and to monitor the securities market in an appropriate manner. b. To monitor and control the performance of stock exchange and derivative markets.

Function contd… c. Listing and monitoring the functioning of stock brokers, sub brokers, share transfer agents, bankers to an issue, trustees of trust deeds, registrars to an issue, merchant bankers, underwriters, portfolio managers, investment advisers and others associated with securities markets by any means.

Function contd… d. Monitoring and Controlling the functioning of venture capital funds and mutual funds. e. Forbid unjust and dishonest trade practices in the security markets and forbid insider trading in the security market. f. Undertake periodic audits of stock exchanges, mutual funds, individuals and self regulatory organizations associated with the security market.

Functions and Responsibilities of SEBI SEBI has to be responsive to the needs of three groups, which constitute the market: The issuers of securities The investors the market intermediaries.

Functions and Responsibilities contd. SEBI has three functions rolled into one body Quasi legislative Quasi executive Quasi judicial Though this makes it very powerful, there is an appeals process to create accountability. There is a Securities Appellate Tribunal which is a three member tribunal and is presently headed by a former Chief Justice of a High court - Mr. Justice NK Sodhi. A second appeal lies directly to the Supreme Court.

Contd… SEBI -success as a regulator by pushing systemic reforms aggressively and successfully (e.g. the quick movement towards making the markets electronic and paperless rolling settlement). SEBI has been active in setting up the regulations as required under law.

Indian timings with US timings

Role in global meltdown SEBI has also been instrumental in taking quick and effective steps in light of the global meltdown and the Satyam fiasco.It had increased the extent and quantity of disclosures to be made by indian corporate promoters. More recently, inlight of the global meltdown,it liberalised the takeover code to facilitate investments by removing regulatory strictures.

SEBI HIERARCHY Shri C B Bhave CHAIRMAN [email_address] Shri M S SAHOO EXECUTIVE DIRECTOR (Whole Time Member) [email_address] Dr. K M ABRAHAM Whole Time Member [email_address] Shri PRASHANT SARAN Whole Time Member [email_address]

Shri MS Sahoo Legal affair dept. Enforcement dept. Market Intermediaries Regulation and Supervision Dept. Derivatives and New Products Dept. Office of Investor Assistance and Education General Services Dept. Board Matters RTI Act including hearing of appeals under RTI Act Parliament Questions Cell

Dr. K M ABRAHAM Corporation Finance Department Market Regulation Department Investigations Department Integrated Surveillance Dept. Vigilance Cell Office of International Affairs Information Technology Department

Shri PRASHANT SARAN Investment Management Department - Division of Funds (Portfolio Managers, Venture Capitals, etc.) Department of Economic and Policy Analysis Regional Offices Investment Management Department-Division of Foreign Institutional Investors (FIIs) and Custodians Investment Management Department - Division of Funds (Mutual Funds) Division of Collective Investment Schemes Enquiry and Adjudication Department

Non-Resident Indian (NRI) Savings and Investments Most NRIs living in the United States have the option of utilizing saving and investments in US and also in India as well. From the U.S, they can save or invest in India's: Bank accounts Investments in securities/shares of, and deposits with, Indian firms/companies Investments in immovable properties in India (Source: Reserve Bank of India - India's Central Bank and Investors Education and Information)

SEBI Protects NRIs The SEBI has been mandated to protect the interests of investors in securities and to promote the development of and to regulate the securities market so as to establish a dynamic and efficient Securities Market contributing to Indian Economy. SEBI strongly believes that investors are the backbone of the securities market. They not only determine the level of activity in the securities market but also the level of activity in the economy.

When Things Go Wrong In the event of any grievance one should first approach the concerned company/ intermediary against whom they have a grievance. However, one may not be satisfied with their response. Therefore, they should know whom he should turn to, to get his grievance redressed.

GRIVIANCE HANDELING SEBI takes up grievances related to issue and transfer of securities and non-payment of dividend with listed companies. In addition, SEBI also takes up grievances against the various intermediaries registered with it and related issues .

Types of grievances Refund Order/ Allotment Advise. Non-receipt of dividend. Non-receipt of share certificates after transfer. Debentures. Non-receipt of letter of offer for rights.

TYPES OF GRIVIANCES Collective Investment Schemes M utual F unds/ V enture C apital F unds/ F oreign V enture C apital I nvestors/ F oreign I nstitutional I nvestors/ P ortfolio M anagers, C ustodians . brokers/ securities L ending intermediaries/ merchant bankers/ R egistrars and T ransfer A gents/ D ebenture T rustees/ B ankers to I ssue/ U nderwriters/ C redit R ating A gencies/ D epository P articipants .

TYPES OF GRIVIANCES S ecurities E xchanges/ C learing and S ettlement O rganizations/ D epositories . Derivative Trading Co rporate G overnance/ C orporate R estructuring/ S ubstantial A cquisition and T akeovers/ B uyback / D elisting / C ompliance W ith L isting C onditions .

Listing It refers to the admission of the security of a public limited company on a recognized stock exchange for trading.

Merits of listing Liquidity Best prices Regular information. Periodic reports Transferability Income tax benefit Wide publicity

Demerits Listed Co.’s are subjected to various regulatory measures of the stock exchanges and SEBI. Essential information has to be submitted by the listed Co.’s to the stock exchanges.

Contd… AGM. Annual reports have to be sent to large number of shareholders. This creates unnecessary expenditures. Public offer itself is an expensive exercise. But this is a pre- requisite for the company’s shares to be listed.

Minimum Listing Requirements for new companies Companies have been classified as large cap companies and small cap companies. A large cap company is a company with a minimum issue size of Rs. 10 crores and market capitalization of not less than Rs. 25 crores. A small cap company is a company other than a large cap company.

In respect of Small Cap Companies The minimum issue size shall be Rs. 3 crores

Steps of Listing 1.Submission of Letter of Application 2.Payment of Listing Fees Initial Listing Fees Rs.20,000 Annual Listing Fees (i) Companies with paid-up capital upto Rs. 5 crores Rs. 10,000 (ii) Above Rs. 5 crores and upto Rs. 10 crores Rs. 15,000 (iii) Above Rs. 10 crores and upto Rs. 20 crores Rs. 30,000 Companies which have a paid-up capital of more than Rs. 20 crores will pay additional fee of Rs. 750/- for every increase of Rs. 1 crore or part thereof.

Steps contd… 3.Collection of Listing Fees – HDFC bank 4. Trading Permission - SEBI 6. Advertisement – No adv. of over subscription / any thanking note in news paper

Security And Exchange Board (SEBI)

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Security And Exchange Board (SEBI)