Submitted by, RESHMA CHANDRAN B Ed , COMMERCE PEET MEMORIAL TRAINING COLLEGE, MAVELIKARA POWER POINT PRESENTATION ON COMMERCE SUBMITTED TO, Mrs. SHEEJA R. ASSISTANT PROFESSOR PEET MEMORIAL TRAINING COLLEGE, MAVELIKARA Securities and Exchange Board of India (SEBI) Securities and Exchange Board of India The Government has set up the Securities and Exchange Board of India (SEBI) by a notification of ministry of finance issued on April 12,1988 . SEBI is the apex body for the development and regulation of the stock market in india . After 4 years separate legislation namely securities and exchange board of india act ,1992 has been enacted . Till then it was acted as an advisory body with its headquarters at Bombay. MANAGEMENT OF SEBI Chairman Two members from amongst the officials of the ministries of the central government. One member from the RBI. Two other members. The central government has the power to appoint all the above members . SEBI may appoint such other officers or employees as it may think fit to discharge its function efficiently. OBJECTIVES OF SEBI The primary objective of SEBI is to promote healthy and orderly growth of the securities market and secure investor protection . The objectives of SEBI are as follows; a)To protect the interest of investors. b)To regulate the securities market and ensure fair practices. c) To promote efficient services by brokers , merchant bankers , and other intermediaries , so that they become competitive and professional FUNCTIONS OF SEBI The SEBI act ,1992 has entrusted with three functions they are as follows ; 1 . Regulatory functions 2 . Developmental functions 3 . Protective functions FUNCTIONS OF SEBI A . Regulatory functions 1.Regulations of stock exchanges and other security markets. 2.Registration and regulation of stock brokers , subbrokers , registrars , registrars to the issue, merchant bankers , underwriters and other intermediaries. 3.Regulation of taking over of companies. 4.Conducting inquiries and audit of stock exchanges. 5.Regulation of the working of mutual funds. B . Developmental functions: 1.Training of intermediaries of the securities market. 2.Promotes investors protection. 3.Conducting research and publish information useful to all market participants. 4.Promote regulatory organisations . C. Protective functions 1.Prohibition of unfair trade practices ; unfair trade practices include price rigging and misleading statements which will cause the sale or purchase of securities of any other person. 2. Prohibition of insider trading; An insider is any person connected with the company having access to price sensitive unpublished information in respect of securities of a company. When directors ,promoters etc. use such information for their individual advantage , such a practice is called insider trading. POWERS OF SEBI 1.Power to call periodical returns from stock exchanges. 2.Power to call any information from stock exchanges or their members. 3.Power to direct enquiries relating to the affairs of stock exchanges. 4.Power to grant approval of bylaws of stock exchanges. 5.Power to make or amend bylaws of stock exchanges. 6.Power to compel listing of securities. 7.Power to control and regulate stock exchanges. 8.Power to grant recognition to market intermediaries. 9.Power to key fees for carry out the purpose of regulation. 10.Power to declare to grant licences to dealers in securities.