Securities and Exchange Board of India

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Securities and Exchange Board of India

SEBI Bhavan, Mumbai headquarters

Agency overview

Formed

12 April 1992

Jurisdiction

Government of India

Headquarters

Mumbai, Maharashtra

Employees

525 (2009)[1]

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 thesecurities market in India.
Contents
[hide]

1 History 2 Organization structure 3 Functions and responsibilities

3.1 Powers 3.2 SEBI Committees

4 See also 5 References 6 External links

[edit]History
It was formed officially by the Government of India in 1992 with SEBI Act 1992[2] 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;[3] 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.

[edit]Organization

structure

Upendra Kumar Sinha was appointed chairman on 18 February 2011 replacing C. B. Bhave.[4]

The Board comprises[5]

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[6]:

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

[edit]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[when?] 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.[7]

[edit]Powers
For the discharge of its functions efficiently, SEBI has been invested with the necessary powers which are: 1. 2. 3. 4. 5. to approve bylaws of stock exchanges. to require the stock exchange to amend their bylaws. inspect the books of accounts and call for periodical returns from recognised stock exchanges. inspect the books of accounts of a financial intermediaries. compel certain companies to list their shares in one or more stock exchanges.

6. 7. 8. 9.

levy fees and other charges on the intermediaries for performing its functions. grant licence to any person for the purpose of dealing in certain areas. delegate powers exercisable by it. prosecute and judge directly the violation of certain provisions of the companies Act.

[edit]SEBI
1. 2. 3. 4. 5. 6. 7. 8. 9.

Committees

Technical Advisory Committee Committee for review of structure of market infrastructure institutions Members of the Advisory Committee for the SEBI Investor Protection and Education Fund Takeover Regulations Advisory Committee Primary Market Advisory Committee (PMAC) Secondary Market Advisory Committee (SMAC) Mutual Fund Advisory Committee Corporate Bonds & Securitization Advisory Committee 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