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SEBI - Securities and Exchange Board of India

The Securities and Exchange Board of India (SEBI) is the regulatory authority in India established under Section 3 of SEBI Act, 1992.. SEBI Act, 1992 provides for establishment of Securities and Exchange Board of India (SEBI) with statutory powers for

  • (a) protecting the interests of investors in securities
  • (b) promoting the development of the securities market and
  • (c) regulating the securities market.

Its regulatory jurisdiction extends over corporates in the issuance of capital and transfer of securities, in addition to all intermediaries and persons associated with securities market. SEBI has been obligated to perform the aforesaid functions by such measures as it thinks fit.

SEBI has its Head Office at Mumbai and has powers to establish its offices at other places in India. SEBI presently has offices also in Calcutta, Delhi and Chennai.

SEBI consists of the following members, namely:

  • a Chairman
  • two members from amongst the officials of the Ministries of the Central Government dealing with Finance and Law
  • one member from amongst the officials of the Reserve Bank of India
  • two other member

Powers and Functions of SEBI

Section 11 of the Act lays down that it shall be the duty of the Board protect the interests of the investors in securities and to promote the development of, and to regulate the securities markets by following measures:

  • regulating the business in stock exchanges and any other securities markets.
  • registering and regulating the working of stock brokers, sub-brokers, share transfer agents, bankers to an issue, registrars to an issue, underwriters, portfolio managers and such other intermediaries who may be associated with securities markets in any manner.
  • registering and regulating the working of the depositories, participants, foreign institutional investors and such other intermediaries .
  • registering and regulating the working of venture capital funds and collective investment schemes, including mutual funds.
  • promoting and regulating self-regulatory organisations.
  • prohibiting fraudulent and unfair trad practices relating to securities markets.
  • promoting investors education and training of intermediaries of securities markets.
  • regulating substantial acquisition of shares and takeover of companies.
  • Calling for information from, undertaking inspection, conducting inquiries and audits of the stock exchanges, intermediaries, self – regulatory organizations, mutual funds and other persons associated with the securities market.

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