Dear Reader, You already would have heard about SEBI – Securities and Exchange Board of India. Below are some important facts which every bank job aspirant must know.
- Securities and Exchange Board of India (SEBI) was established in 1988 as a replacement of the Controller of Capital Issues (CCI) which was the regulatory authority before SEBI.
- SEBI was given statutory powers on 12 April 1992 through SEBI Act, 1992.
- SEBI acts as the regulator for the securities market in India.
- Its Head quarters is located in Mumbai.
Objectives of SEBI:
- To regulate activities of stock exchange
- To safeguard the rights of investors and also to ensure the safety of their investment
- To prevent malpractices by balancing its self regulating business and statutory regulations
- To manage and develop a code of conduct for intermediaries
SEBI operates to fulfil the needs of the following three groups
- Issuers – SEBI provides a market place in which they (the issuers) can raise finance fairly.
- Investors – SEBI provides safety and supply of accurate and correct information
- Intermediaries – SEBI provides a competitive professional market for intermediaries.
Organisational Structure of SEBI:
- A Chairman (nominated by Union Government of India)– Upendra Kumar Sinha
- 2 members – one official from the Ministry of finance (Joint Secretary, Prakash Chandra) and another from Administration of Company Act, 1956. (Secretary, Naved Masood)
- 1 official from RBI (Deputy Governor, Anand Sinha)
- 5 other members out of that 3 shall be whole time members appointed by the central government.
They are as follows:
- Nishant Rathi – full-time member
- Rajeev Kumar Agarwal – full-time member
- S. Raman – full-time member
- V. K. Jairath Magya – Part-time member
- Raje Kumar – part-time member
Functions of SEBI:
- Regulatory Functions are performed to regulate the business in stock exchange
- SEBI regulates the workflow of mutual funds
- It also conduct inquiries and audit of stock exchanges
- It frames the rules and regulations and to develop a code conduct between intermediaries
- Protective Functions are performed to protect the interest of investors and also safety for their investment.
- It involves to check on Price Rigging.
- It prohibits insider trading
- It also prohibits fraudulent and Unfair Trade Practices
- Development Functions are performed to develop the activities of stock exchange and improve the business.
- It gives training for intermediaries of the securities market
- It promotes the activities of stock exchange
Some of the Committees formed by SEBI are as follows:
- Alternative Investment Policy Advisory Committee (AIPAC)
- Risk Management Review Committee (RMRC)
- Takeover Regulations Advisory Committee
- Technical Advisory Committee
- Primary Market Advisory Committee (PMAC)
- Depository System Review Committee (DSRC)
- Corporate Bonds and Securitization Advisory Committee (CoBoSAC)
- SEBI Committee on Disclosures and Accounting Standards (SCODA)
- Qualified Audit Report Review Committee (QARC)
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