Introduction:SEBI is managed by six members one chairman (nominated by CentralGovernment), two members (officers of central ministries), one member

r (fromRBI) and remaining two members nominated by Central Government. About SEBIESTABLISHMENT OF SEBI The Securities and Exchange Board of India was established on April 12,1992 in accordance with the provisions of the Securities and ExchangeBoard of India Act, 1992. PREAMBLE The Preamble of the Securities and Exchange Board of India describes thebasic functions of the Securities and Exchange Board of India as"...to protect the interests of investors in securities and to promote thedevelopment of, and to regulate the securities market and for mattersconnected therewith or incidental thereto" SEBI These Guidelines have been issued by the Securities and Exchange Board of India under Section 11 of the Securities and Exchange Board of India Act,1992.(a) These Guidelines may be called the Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines, 2000.(b) These Guidelines shall come into force from the date specified by theBoard Functions & ResponsibilitiesSEBI has to be responsive to the needs of three groups, which constitute themarket: 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, itconducts investigation and enforcement action in its executive function andit passes rulings and orders in its judicial capacity. Though this makes itvery powerful, there is an appeals process to create accountability. There isa Securities Appellate Tribunal which is a threemember tribunal and ispresently headed by a former Chief Justice of a High court -Mr. JusticeN.K.Sodhi. A second appeal lies directly to theSupreme Court.SEBI hasenjoyed success as a regulator by pushing systemic reforms aggressively and successively. SEBI has been active in setting up the regulations asrequired under law.SEBI has also been instrumental in taking quick andeffective steps in light of the global meltdown and the Satyam fiasco. Ithad increased the extent and quantity of disclosures to be made by

Indiancorporate promoters. More recently, in light of the global melt down, itliberalised the takeover code to facilitate investments by removing regulatory structures. In one such move, SEBI has increased the application limit forretail investors to Rs 2 lakh, from Rs 1 lakh at present