The full form of SEBI is known as Securities and Exchange Board of India. It is the regulator of the capital market-i.e. the market of equity and debt securities of India. SEBI is headquartered in Mumbai. It has four regional offices in New Delhi, Chennai, Kolkata, and Ahmadabad.
This article contains the full form of SEBI along with the briefings of inception, the board of members, objectives, functions, power, guidelines, and schemes formed by the SEBI
SEBI was established in the year 1988 by the government of India. It was announced as an autonomous, statutory, and integrated organization for the smooth functioning of the capital market of the Indian Financial System under the Security and Exchange Board of India Act, 1992.
Management of the SEBI
The management of the SEBI consists of the following board of members-
- One chairman- nominated by the Union Government of India.
- Two members- from the Union Finance Ministry
- One member from the Reserve Bank of India
- Five members-nominated by the Union Government of India,
Ajay Tyagi is the present chairman of SEBI.
The board works under the Ministry of Finance to fulfill the following objectives:
- Protection of the interest of the public in the security market
- Promotion of the development of the security market and
- Regulation of the security market and related matters.
Functions of SEBI
- Regulation of stock exchanges and other business of the security market.
- Registration and regulation of the functions and workings of merchant bankers, sub-brokers, stock brokers, share transfer agents, bankers to an issue, trustees of trust deeds, registrars to an issue, underwriters, portfolio managers, and other intermediaries associated with the security market, collective investment schemes, and mutual funds.
- Prohibition of insider trading, fraudulent and unfair trade practices in the securities market.
- Promotion of investor education and trading of securities.
- Regulation of substantial acquisition of shares and takeover of companies.
- Inspection, conducting inquiries, audits of the stock and levying fees or other charges for any misconduct.
- Plays a significant role in the merger and acquisition of shares of companies.
Powers of SEBI
- Inspect or request any other officers of the financial market to inspect books of market participant, bankers to an issue and other intermediaries.
- Suspend or cancel a certificate of registration of any of the market intermediary who furnishes false information
Some of the significant Regulations, Guidelines, and Schemes Issued by the SEBI are-
- SEBI (Foreign Institutional Investors) Regulations, 1995
- SEBI (Venture Capital Funds) Regulations, 1996
- SEBI (Buyback of Securities) Regulations, 1998
- SEBI (Credit Rating Agencies) Regulations, 1999
- SEBI (Foreign Venture Capital Investors) Regulations, 2000
- SEBI (Procedure for Board Meeting) Regulations, 2001
- SEBI (Issue of Sweat Equity) Regulations, 2002
- SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002
- SEBI (Ombudsman) Regulations, 2003
- SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003
- SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme), 1999
- SEBI (Disclosure and Investor Protection), 2000
- SEBI (Delisting of Securities), 2003
- Securities Lending Scheme, 1997
- SEBI (Informal Guidance) Scheme, 2003
SAT– Any intermediary can appeal against the orders of the SEBI under the securities laws before a securities appellate tribunal (SAT).SAT, a statutory body established under the SEBI Act, is also entitled to exercise jurisdiction, powers, and authority with the consent of SEBI and the appellant.
SCORES– SEBI Complaints Redress System is an online platform to register complaints to improve the grievance redressal mechanism.