Securities and Exchange Board of India (SEBI) was first established in 1988 as a non-statutory body for regulating the securities market. It became an autonomous body on 30 January 1992 and was accorded statutory powers with the passing of the SEBI Act 1992 by the Indian Parliament. SEBI has its headquarters at the business district of Bandra Kurla Complex in Mumbai and has Northern, Eastern, Southern and Western Regional Offices in New Delhi, Kolkata, Chennai, and Ahmedabad respectively. It has opened local offices at Jaipur and Bangalore and has also opened offices at Guwahati, Bhubaneshwar, Patna, Kochi and Chandigarh in Financial Year 2013–2014.
Controller of Capital Issues was the regulatory authority before SEBI came into existence; it derived authority from the Capital Issues (Control) Act, 1947.
The SEBI is managed by its members, which consists of the following:
The chairman is nominated by the Union Government of India.
Two members, i.e., Officers from the Union Finance Ministry.
The Preamble of the Securities and Exchange Board of India describes the basic functions of the Securities and Exchange Board of India as "...to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected there with or incidental there to".
SEBI has to be responsive to the needs of three groups, which constitute the market:
issuers of securities
investors
market intermediaries
SEBI has three powers rolled into one body: quasi-legislative, quasi-judicial and quasi-executive. It drafts regulations in its legislative capacity, it conducts investigation and enforcement action in its executive function and it passes rulings and orders in its judicial capacity. Though this makes it very powerful, there is an appeal process to create accountability. There is a Securities Appellate Tribunal which is a three-member tribunal and is currently headed by Justice Tarun Agarwala, former Chief Justice of the Meghalaya High Court.[7] A second appeal lies directly to the Supreme Court. SEBI has taken a very proactive role in streamlining disclosure requirements to international standards.[8]
Securities and Exchange Board of India (SEBI)
Powers
For the discharge of its functions efficiently, SEBI has been vested with the following powers:
to approve by−laws of Securities exchanges.
to require the Securities exchange to amend their by−laws.
inspect the books of accounts and call for periodical returns from recognised Securities exchanges.
inspect the books of accounts of financial intermediaries.
compel certain companies to list their shares in one or more Securities exchanges.
registration of Brokers and sub-brokers.
♦ SEBI committees
Technical Advisory Committee
Committee for review of structure of infrastructure institutions
Advisory Committee for the SEBI Investor Protection and Education Fund
SEBI has enjoyed success as a regulator by pushing systematic reforms aggressively and successively. SEBI is credited for quick movement towards making the markets electronic and paperless by introducing T+5 rolling cycle from July 2001 and T+3 in April 2002 and further to T+2 in April 2003. The rolling cycle of T+2[9] means, Settlement is done in 2 days after Trade date.[10] SEBI has been active in setting up the regulations as required under law. SEBI did away with physical certificates that were prone to postal delays, theft and forgery, apart from making the settlement process slow and cumbersome by passing Depositories Act, 1996.[11]
SEBI has also been instrumental in taking quick and effective steps in light of the global meltdown and the Satyam fiasco.[citation needed] In October 2011, it increased the extent and quantity of disclosures to be made by Indian corporate promoters.[12] In light of the global meltdown, it liberalised the takeover code to facilitate investments by removing regulatory structures. In one such move, SEBI has increased the application limit for retail investors to ₹ 200,000, from ₹ 100,000 at present.[13]
On the occasion of World Investor Week 2022, SEBI Executive Director Shri G. P. Garg launched a book on Financial Literacy. This book is a joint effort between Metropolitan Stock Exchange of India Limited and CASI New York.[14][15]
Controversies
Supreme Court of India heard a Public Interest Litigation (PIL) filed by India Rejuvenation Initiative that had challenged the procedure for key appointments adopted by Govt of India. The petition alleged that, "The constitution of the search-cum-selection committee for recommending the name of chairman and every whole-time members of SEBI for appointment has been altered, which directly impacted its balance and could compromise the role of the SEBI as a watchdog."[16][17] On 21 November 2011, the court allowed petitioners to withdraw the petition and file a fresh petition pointing out constitutional issues regarding appointments of regulators and their independence. The Chief Justice of India refused the finance ministry's request to dismiss the PIL and said that the court was well aware of what was going on in SEBI.[16][18] Hearing a similar petition filed by Bengaluru-based advocate Anil Kumar Agarwal, a two judge Supreme Court bench of Justice Surinder Singh Nijjar and Justice HL Gokhale issued a notice to the Govt of India, SEBI chief UK Sinha and Omita Paul, Secretary to the President of India.[19][20]
Further, it came into light that Dr. K. M. Abraham(the then whole time member of SEBI Board) had written to the Prime Minister about malaise in SEBI. He said, "The regulatory institution is under duress and under severe attack from powerful corporate interests operating concertedly to undermine SEBI". He specifically said that Finance Minister's office, and especially his advisor Omita Paul, were trying to influence many cases before SEBI, including those relating to Sahara Group, Reliance, Bank of Rajasthan and MCX.[21][22]
SEBI and Regional Securities Exchanges
SEBI in its circular dated May 30, 2012 gave exit – guidelines for Securities exchanges. This was mainly due to illiquid nature of trade on many of 20+ regional Securities exchanges. It had asked many of these exchanges to either meet the required criteria or take a graceful exit. SEBI's new norms for Securities exchanges mandates that it should have minimum net-worth of ₹ 1 billion and an annual trading of ₹ 10 billion. The Indian Securities market regulator SEBI had given the recognized Securities exchanges two years to comply or exit the business.[23]
Exchanges may seek exit through voluntary surrender of recognition.
Securities where the annual trading turnover on its own platform is less than ₹ 10 billion can apply to SEBI for voluntary surrender of recognition and exit, at any time before the expiry of two years from the date of issuance of this Circular.
If the Securities exchange is not able to achieve the prescribed turnover of ₹ 10 billion on continuous basis or does not apply for voluntary surrender of recognition and exit before the expiry of two years from the date of this Circular, SEBI shall proceed with compulsory de-recognition and exit of such Securities exchanges, in terms of the conditions as may be specified by SEBI.
Securities Exchanges which are already de-recognised as on date, shall make an application for exit within two months from the date of this circular. Upon failure to do so, the de-recognised exchange shall be subject to compulsory exit process.
SEBI departments
SEBI regulates Indian financial market through its 20 departments.[25]
Commodity Derivatives Market Regulation Department (CDMRD)
Corporation Finance Department (CFD)
Department of Economic and Policy Analysis (DEPA)
Department of Debt and Hybrid Securities (DDHS)
Enforcement Department – 1 (EFD1)
Enforcement Department – 2 (EFD2)
Enquiries and Adjudication Department (EAD)
General Services Department (GSD)
Human Resources Department (HRD)
Information Technology Department (ITD)
Integrated Surveillance Department (ISD)
Investigations Department (IVD)
Investment Management Department (IMD)
Legal Affairs Department (LAD)
Market Intermediaries Regulation and Supervision Department (MIRSD)
Market Regulation Department (MRD)
Office of International Affairs (OIA)
Office of Investor Assistance and Education (OIAE)
^"Book Launch on Financial Literacy – PNN Digital". 17 October 2022.
^"Book Launch on Financial Literacy – Live Mumbai".
^ ab"Is Sebi's Autonomy Under Threat?". 15 November 2011. Retrieved 10 April 2012.
^"PIL alleges nexus in Sebi appointments". 5 November 2011. Retrieved 10 April 2012.
^"SC allows eminent citizens to withdraw petition against SEBI chief's appointment". 21 November 2011. Retrieved 10 April 2012.
^"Notice to Centre on quo warranto against SEBI chief". The Hindu. 26 September 2012. Retrieved 26 September 2012.
^"SC seeks Centre's reply on PIL on Sebi chairman's appointment". Deccan Herald. 26 September 2012. Retrieved 26 September 2012.
^"KM Abraham's letter to PM". Prime Minister's Office. 20 October 2011. Retrieved 11 April 2012.
^"Pranab-Chidu feud may be revived over Sebi chief PIL". 12 November 2011. Retrieved 11 April 2012.
^Rukhaiyar, Ashish (20 May 2014). "15 regional Securities exchanges to shut operations as Sebi deadline approaches". livemint.com/. Retrieved 15 May 2017.
^1149. "笺憷︺汨俱 广沏洇慵泐沅︺ '沣趵 沅蹄沅躲姐俱 恒泷". webcache.googleusercontent.com. Retrieved 15 May 2017.{{cite web}}: CS1 maint: numeric names: authors list (link)
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Securities and Exchange Board of India
SEBI Latest Circulars
SEBI Annual Reports
January 18, 2023
securities, exchange, board, india, sebi, regulatory, body, securities, commodity, market, india, under, ownership, ministry, finance, within, government, india, established, april, 1988, executive, body, given, statutory, powers, january, 1992, through, sebi,. The Securities and Exchange Board of India SEBI is the regulatory body for securities and commodity market in India under the ownership of Ministry of Finance within the Government of India It was established on 12 April 1988 as an executive body and was given statutory powers on 30 January 1992 through the SEBI Act 1992 1 3 Securities and Exchange Board of IndiaSEBI logoSEBI Bhavan headquarters at MumbaiAgency overviewFormedApril 12 1988 34 years ago 1988 04 12 Established January 30 1992 30 years ago 1992 01 30 Acquired Statutory Status 1 TypeRegulatory BodyHeadquartersMumbai MaharashtraEmployees867 2020 2 Agency executiveMadhabi Puri Buch ChairmanParent departmentMinistry of Finance Government of IndiaChild agenciesForward Markets CommissionAssociation of Mutual Funds of IndiaNational Securities Depository LimitedCentral Depository Services LimitedWebsitewww wbr sebi wbr gov wbr in Contents 1 History 2 Organisation structure 2 1 Current Board members 2 2 List of Chairpersons 3 National Apex Bodies 4 Functions and responsibilities 4 1 Powers 5 Major achievements 6 Controversies 7 SEBI and Regional Securities Exchanges 7 1 Process of de recognition and exit 8 SEBI departments 9 See also 10 References 11 External linksHistory EditSecurities and Exchange Board of India SEBI was first established in 1988 as a non statutory body for regulating the securities market It became an autonomous body on 30 January 1992 and was accorded statutory powers with the passing of the SEBI Act 1992 by the Indian Parliament SEBI has its headquarters at the business district of Bandra Kurla Complex in Mumbai and has Northern Eastern Southern and Western Regional Offices in New Delhi Kolkata Chennai and Ahmedabad respectively It has opened local offices at Jaipur and Bangalore and has also opened offices at Guwahati Bhubaneshwar Patna Kochi and Chandigarh in Financial Year 2013 2014 Controller of Capital Issues was the regulatory authority before SEBI came into existence it derived authority from the Capital Issues Control Act 1947 The SEBI is managed by its members which consists of the following The chairman is nominated by the Union Government of India Two members i e Officers from the Union Finance Ministry One member from the Reserve Bank of India The remaining five members are nominated by the Union Government of India out of them at least three shall be whole time members After the amendment of 1999 collective investment schemes were brought under SEBI except nidhis chit funds and cooperatives Organisation structure Edit SEBI headquarters Mumbai Madhabi Puri Buch took charge of chairman on 1 March 2022 replacing Ajay Tyagi whose term ended on 28 February 2022 Madhabi Puri Buch is the first women chairperson of SEBI citation needed Current Board members Edit The board comprises 4 5 Name DesignationMadhabi Puri Buch ChairmanS K Mohanty Whole time memberRaje Prem Kumar Ashwini Bhatia Whole time memberAjay Seth Part time memberRajesh Verma Part time memberM Rajeshwar Rao Part time memberV Ravi Anshuman Part time memberList of Chairpersons Edit List of Chairmen 6 Name From ToMadhabi Puri Buch 1 March 2022 PresentAjay Tyagi 10 February 2017 28 February 2022U K Sinha 18 February 2011 10 February 2017C B Bhave 18 February 2008 18 February 2011M Damodaran 18 February 2005 18 February 2008G N Bajpai 20 February 2002 18 February 2005D R Mehta 21 February 1995 20 February 2002S S Nadkarni 17 January 1994 31 January 1995G V Ramakrishna 24 August 1990 17 January 1994Dr S A Dave 12 April 1988 23 August 1990National Apex Bodies EditNational Institute of Securities Markets of IndiaFunctions and responsibilities EditThe Preamble of the Securities and Exchange Board of India describes the basic functions of the Securities and Exchange Board of India as to protect the interests of investors in securities and to promote the development of and to regulate the securities market and for matters connected there with or incidental there to SEBI has to be responsive to the needs of three groups which constitute the market issuers of securities investors market intermediariesSEBI has three powers rolled into one body quasi legislative quasi judicial and quasi executive It drafts regulations in its legislative capacity it conducts investigation and enforcement action in its executive function and it passes rulings and orders in its judicial capacity Though this makes it very powerful there is an appeal process to create accountability There is a Securities Appellate Tribunal which is a three member tribunal and is currently headed by Justice Tarun Agarwala former Chief Justice of the Meghalaya High Court 7 A second appeal lies directly to the Supreme Court SEBI has taken a very proactive role in streamlining disclosure requirements to international standards 8 Securities and Exchange Board of India SEBI Powers Edit For the discharge of its functions efficiently SEBI has been vested with the following powers to approve by laws of Securities exchanges to require the Securities exchange to amend their by laws inspect the books of accounts and call for periodical returns from recognised Securities exchanges inspect the books of accounts of financial intermediaries compel certain companies to list their shares in one or more Securities exchanges registration of Brokers and sub brokers SEBI committees Technical Advisory Committee Committee for review of structure of infrastructure institutions Advisory Committee for the SEBI Investor Protection and Education Fund Takeover Regulations Advisory Committee Primary Market Advisory Committee PMAC Secondary Market Advisory Committee SMAC Mutual Fund Advisory Committee Corporate Bonds amp Securitisation Advisory Committee There are two types of brokers Discount brokers Merchant brokersEliminate malpractices in security marketMajor achievements EditSEBI has enjoyed success as a regulator by pushing systematic reforms aggressively and successively SEBI is credited for quick movement towards making the markets electronic and paperless by introducing T 5 rolling cycle from July 2001 and T 3 in April 2002 and further to T 2 in April 2003 The rolling cycle of T 2 9 means Settlement is done in 2 days after Trade date 10 SEBI has been active in setting up the regulations as required under law SEBI did away with physical certificates that were prone to postal delays theft and forgery apart from making the settlement process slow and cumbersome by passing Depositories Act 1996 11 SEBI has also been instrumental in taking quick and effective steps in light of the global meltdown and the Satyam fiasco citation needed In October 2011 it increased the extent and quantity of disclosures to be made by Indian corporate promoters 12 In light of the global meltdown it liberalised the takeover code to facilitate investments by removing regulatory structures In one such move SEBI has increased the application limit for retail investors to 200 000 from 100 000 at present 13 On the occasion of World Investor Week 2022 SEBI Executive Director Shri G P Garg launched a book on Financial Literacy This book is a joint effort between Metropolitan Stock Exchange of India Limited and CASI New York 14 15 Controversies EditSupreme Court of India heard a Public Interest Litigation PIL filed by India Rejuvenation Initiative that had challenged the procedure for key appointments adopted by Govt of India The petition alleged that The constitution of the search cum selection committee for recommending the name of chairman and every whole time members of SEBI for appointment has been altered which directly impacted its balance and could compromise the role of the SEBI as a watchdog 16 17 On 21 November 2011 the court allowed petitioners to withdraw the petition and file a fresh petition pointing out constitutional issues regarding appointments of regulators and their independence The Chief Justice of India refused the finance ministry s request to dismiss the PIL and said that the court was well aware of what was going on in SEBI 16 18 Hearing a similar petition filed by Bengaluru based advocate Anil Kumar Agarwal a two judge Supreme Court bench of Justice Surinder Singh Nijjar and Justice HL Gokhale issued a notice to the Govt of India SEBI chief UK Sinha and Omita Paul Secretary to the President of India 19 20 Further it came into light that Dr K M Abraham the then whole time member of SEBI Board had written to the Prime Minister about malaise in SEBI He said The regulatory institution is under duress and under severe attack from powerful corporate interests operating concertedly to undermine SEBI He specifically said that Finance Minister s office and especially his advisor Omita Paul were trying to influence many cases before SEBI including those relating to Sahara Group Reliance Bank of Rajasthan and MCX 21 22 SEBI and Regional Securities Exchanges EditSEBI in its circular dated May 30 2012 gave exit guidelines for Securities exchanges This was mainly due to illiquid nature of trade on many of 20 regional Securities exchanges It had asked many of these exchanges to either meet the required criteria or take a graceful exit SEBI s new norms for Securities exchanges mandates that it should have minimum net worth of 1 billion and an annual trading of 10 billion The Indian Securities market regulator SEBI had given the recognized Securities exchanges two years to comply or exit the business 23 Process of de recognition and exit Edit Following is an excerpts from the circular 24 Exchanges may seek exit through voluntary surrender of recognition Securities where the annual trading turnover on its own platform is less than 10 billion can apply to SEBI for voluntary surrender of recognition and exit at any time before the expiry of two years from the date of issuance of this Circular If the Securities exchange is not able to achieve the prescribed turnover of 10 billion on continuous basis or does not apply for voluntary surrender of recognition and exit before the expiry of two years from the date of this Circular SEBI shall proceed with compulsory de recognition and exit of such Securities exchanges in terms of the conditions as may be specified by SEBI Securities Exchanges which are already de recognised as on date shall make an application for exit within two months from the date of this circular Upon failure to do so the de recognised exchange shall be subject to compulsory exit process SEBI departments EditSEBI regulates Indian financial market through its 20 departments 25 Commodity Derivatives Market Regulation Department CDMRD Corporation Finance Department CFD Department of Economic and Policy Analysis DEPA Department of Debt and Hybrid Securities DDHS Enforcement Department 1 EFD1 Enforcement Department 2 EFD2 Enquiries and Adjudication Department EAD General Services Department GSD Human Resources Department HRD Information Technology Department ITD Integrated Surveillance Department ISD Investigations Department IVD Investment Management Department IMD Legal Affairs Department LAD Market Intermediaries Regulation and Supervision Department MIRSD Market Regulation Department MRD Office of International Affairs OIA Office of Investor Assistance and Education OIAE Office of the chairman OCH Regional offices ROs See also EditForward Markets Commission India Securities commission Financial regulation List of financial regulatory authorities by country Securities exchange Regulation D SEC Institute of Chartered Accountants of India Institute of Company Secretaries of India List of stock exchanges in the Commonwealth of NationsReferences Edit a b About SEBI SEBI Archived from the original on 3 October 2010 Retrieved 26 September 2012 SEBI Employee Profile in SEBI The Security and Exchange Board of India Act 1992 PDF www sebi gov in SEBI Retrieved 25 July 2022 SEBI Board Members PDF Retrieved 28 February 2012 SEBI Board Members Retrieved 18 April 2022 Former Chairmen of SEBI SEBI Retrieved 19 February 2011 Justice Tarun Agarwala appointed Securities Appellate Tribunal presiding officer Business Standard Business Standard 2018 12 12 Retrieved 2019 03 24 Cyril Shroff Managing Partner Mumbai amp National Capital Market head Amarchand barandbench com Discussion Paper Implementation of T 2 rolling settlement PDF SEBI Retrieved 25 October 2012 Sebi gets rolling on T 2 settlement schedule The Economic Times 4 January 2003 Retrieved 25 October 2012 Sebi s 25 year journey Livemint 2013 05 21 Retrieved 2013 07 29 SEBI makes it mandatory for companies to disclose promoters shares The Economic Times 6 October 2011 Retrieved 26 October 2012 Sebi doubles retail limit tightens IPO norms Rediff com Retrieved 27 October 2010 Book Launch on Financial Literacy PNN Digital 17 October 2022 Book Launch on Financial Literacy Live Mumbai a b Is Sebi s Autonomy Under Threat 15 November 2011 Retrieved 10 April 2012 PIL alleges nexus in Sebi appointments 5 November 2011 Retrieved 10 April 2012 SC allows eminent citizens to withdraw petition against SEBI chief s appointment 21 November 2011 Retrieved 10 April 2012 Notice to Centre on quo warranto against SEBI chief The Hindu 26 September 2012 Retrieved 26 September 2012 SC seeks Centre s reply on PIL on Sebi chairman s appointment Deccan Herald 26 September 2012 Retrieved 26 September 2012 KM Abraham s letter to PM Prime Minister s Office 20 October 2011 Retrieved 11 April 2012 Pranab Chidu feud may be revived over Sebi chief PIL 12 November 2011 Retrieved 11 April 2012 Rukhaiyar Ashish 20 May 2014 15 regional Securities exchanges to shut operations as Sebi deadline approaches livemint com Retrieved 15 May 2017 1149 笺憷 汨俱 广沏洇慵泐沅 沣趵 沅蹄沅躲姐俱 恒泷 webcache googleusercontent com Retrieved 15 May 2017 a href Template Cite web html title Template Cite web cite web a CS1 maint numeric names authors list link SEBI Departments 7 February 2018 External links Edit Wikimedia Commons has media related to Securities and Exchange Board of India Securities and Exchange Board of India SEBI Latest Circulars SEBI Annual Reports Retrieved from https en wikipedia org w index php title Securities and Exchange Board of India amp oldid 1131972695, wikipedia, wiki, book, books, library,
