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Objectives of SEBI :

To protect the interest of the investors in securities. To promote the development of securities market.

To regulate the securities market.

Functions of SEBI :
Regulating the business in stock exchange and any other securities market. Registering and regulating the workings of intermediaries associated with securities market Registering and regulating the working of collective investment schemes including mutual funds. Promoting and regulating self-regulatory organizations. Prohibiting fraudulent and unfair trade practices in the securities market

Functions of SEBI :
Promoting investors education and training of intermediaries in securities market. Prohibiting insiders trading in securities. Regulating substantial acquisition of shares and take-over of companies. Calling for information, undertaking inspection, conducting enquiries and audits of the stock exchanges, intermediaries and self-regulatory organizations in the securities market

Organization of SEBI :
Departments Primary Mkt. dept. Issue Mgt. & Intermediaries Dept. Secondary Mkt. dept. Institutional Invt. Advisory Committees

SEBI Regulates. :
Primary

Foreign Institutional Investment

SEBI

Secondary

Mutual Fund

SEBI & Primary Market :


Measures undertaken by SEBI: Entry norms. Promoters contribution. Disclosure. Book building. Allocation of shares. Market intermediaries.

Conti.. :
10/10/2009 SAPM 8 Conti.. 1. Entry norms Track record of dividend payment for minimum 3 yrs preceding the issue. Already listed companies - when post-issue networth becomes more than 5 times the pre-issue networth For Manufacturing company not having such track record appraise project by a public financial institution or a scheduled commercial bank. For corporate body 5 public shareholders for every Rs.1 lakh of the net capital offer made to the public Banks 2 yrs of profitability for issues above par. Offer documents to companies.

Conti.. :
10/10/2009 SAPM 9 Conti.. 2. Promoters contribution Should not be less than 20% of the issued capital. Receiving of promoters contribution. Lock in period as per SEBI. Cases of non-under written public issues. 3. Disclosure draft prospectus Un audited financial results

Conti.. :
10/10/2009 SAPM 10 Conti.. 4. Book building SEBI recommends two-tier under writing system One of the mode of public issue thru prospectus. Role of syndicate members and book runners. Minimum 30 centers. 5. Allocation of shares Minimum application of shares Reservation for small investors Allotment of securities

Conti.. :
10/10/2009 SAPM 11 Conti.. 6. Market intermediaries Licensing of merchant bankers Licensing of underwriters, registrars, transfer agents, etc., Merchant bankers net worth Rs.5 crores Segregate fund based from fee based activities.

SEBI & Secondary Market :


10/10/2009 SAPM 12 SEBI & Secondary Market Reforms in the secondary market:Governing board Infrastructure Settlement & clearing Debt market Price stabilization Delisting Brokers Insider Trading

Conti.. :
10/10/2009 SAPM 13 Conti.. 1. Governing board Brokers and non-brokers representation made 50:50 60% of brokers in arbitration, disciplinary & default committees For trading members 40% representation 2. Infrastructure On-line screen based trading terminals

Conti.. :
10/10/2009 SAPM 13 Conti.. 1. Governing board Brokers and non-brokers representation made 50:50 60% of brokers in arbitration, disciplinary & default committees For trading members 40% representation 2. Infrastructure On-line screen based trading terminals