Securities and Exchange Board of India

Securities and Exchange Board of India
भारतीय प्रतिभूति और विनिमय बोर्ड
SEBI Bhavan, Mumbai headquarters
Agency overview
Formed	12 April 1992
Jurisdiction	Government of India
Headquarters	Mumbai, Maharashtra
Employees	525 (2009)
Agency executive	U. K. Sinha, Chairman
Website
www.sebi.gov.in

The Securities and Exchange Board of India (frequently abbreviated SEBI) is the regulator for the securities market in India.

History

It was formed officially by the Government of India in 1992 with SEBI Act 1992 being passed by the Indian Parliament. SEBI is headquartered in the business district of Bandra-Kurla complex in Mumbai, and has Northern, Eastern, Southern and Western regional offices in New Delhi, Kolkata, Chennai and Ahmedabad.

Controller of Capital Issues was the regulatory authority before SEBI came into existence; it derived authority from the Capital Issues (Control) Act, 1947.

Initially SEBI was a non statutory body without any statutory power. However in 1995, the SEBI was given additional statutory power by the Government of India through an amendment to the securities and Exchange Board of India Act 1992. In April, 1998 the SEBI was constituted as the regulator of capital market in India under a resolution of the Government of India.

Organization structure

Upendra Kumar Sinha was appointed chairman on 18 February 2011 replacing C. B. Bhave.

The Board comprises

Name	Designation
Upendra Kumar Sinha	Chairman
Prashant Saran	Whole Time Member
CA. T.V. Mohandas Pai	Director, Infosys
Dr. Thomas Mathew	Joint Secretary, Ministry of Finance
V. K. Jairath	Member Appointed
Anand Sinha	Deputy Governor, Reserve Bank of India

List of former Chairmen:

Name	From	To
C. B. Bhave	18 February 2008	18 February 2011
M. Damodaran	18 February 2005	18 February 2008
G. N. Bajpai	20 February 2002	18 February 2005
D. R. Mehta	21 February 1995	20 February 2002
S. S. Nadkarni	17 January 1994	31 January 1995
G. V. Ramakrishna	24 August 1990	17 January 1994
Dr. S. A. Dave	12 April 1988	23 August 1990

Functions and responsibilities

SEBI has to be responsive to the needs of three groups, which constitute the market:

• the issuers of securities
• the investors
• the market intermediaries.

SEBI has three functions rolled into one body: quasi-legislative, quasi-judicial and quasi-executive. It drafts regulations in its legislative capacity, it conducts investigation and enforcement action in its executive function and it passes rulings and orders in its judicial capacity. 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.

SEBI has enjoyed success as a regulator by pushing systemic reforms aggressively and successively (e.g. the quick movement towards making the markets electronic and paperless rolling settlement on T+2 basis). SEBI has been active in setting up the regulations as required under law.

SEBI has also been instrumental in taking quick and effective steps in light of the global meltdown and the Satyam fiasco.^{[citation needed]} It had increased the extent and quantity of disclosures to be made by Indian corporate promoters. More recently, in light of the global meltdown,it liberalised the takeover code to facilitate investments by removing regulatory structures. In one such move, SEBI has increased the application limit for retail investors to Rs 2 lakh, from Rs 1 lakh at present.

Powers

For the discharge of its functions efficiently, SEBI has been invested with the necessary powers which are:

1. to approve by−laws of stock exchanges.
2. to require the stock exchange to amend their by−laws.
3. inspect the books of accounts and call for periodical returns from recognised stock exchanges.
4. inspect the books of accounts of a financial intermediaries.
5. compel certain companies to list their shares in one or more stock exchanges.
6. levy fees and other charges on the intermediaries for performing its functions.
7. grant licence to any person for the purpose of dealing in certain areas.
8. delegate powers exercisable by it.
9. prosecute and judge directly the violation of certain provisions of the companies Act.

SEBI Committees

1. Technical Advisory Committee
2. Committee for review of structure of market infrastructure institutions
3. Members of the Advisory Committee for the SEBI Investor Protection and Education Fund
4. Takeover Regulations Advisory Committee
5. Primary Market Advisory Committee (PMAC)
6. Secondary Market Advisory Committee (SMAC)
7. Mutual Fund Advisory Committee
8. Corporate Bonds & Securitization Advisory Committee
9. Takeover Panel
10. SEBI Committee on Disclosures and Accounting Standards (SCODA)
11. High Powered Advisory Committee on consent orders and compounding of offences
12. Derivatives Market Review Committee
13. Committee on Infrastructure Funds

See also

• Bombay Stock Exchange
• National Stock Exchange of India
• Forward Markets Commission (India)
• Securities Commission
• Financial regulation
• List of financial regulatory authorities by country
• Stock exchange
• Regulation D (SEC)
• Institute of Chartered Accountants of India

External links

• Securities and Exchange Board of India Website