To
reform the financial services sector especially the securities market,
the Securities and Exchange Board of India (SEBI) was established by the
Government of India in 1988 through an executive resolution, and was
subsequently upgraded as fully autonomous body (a statutory board) in
the year 1992 with the passing of the Securities and Exchange Board of
India Act (SEBI Act) on 30th January 1992.
The Securities and Exchange Board of India is the sole regulator for the securities market in India.
The SEBI is managed by six members, i.e. by the chairman who is nominated by central government & two members, i.e. officers of central ministry, one member from the RBI & the remaining two are nominated by the central government.
SEBI is headquartered in Mumbai, and has Northern, Eastern, Southern and Western regional offices in New Delhi, Kolkata, Chennai and Ahmedabad.
The basic objectives of the Board were identified as:
• to protect the interests of investors in securities;
• to promote the development of Securities Market;
• to regulate the securities market and
• for matters connected therewith or incidental thereto.
SEBI has to be responsive to the needs of three groups, which constitute:
• the issuers of securities
• the investors
• the market intermediaries.
To the investors, the SEBI strives to assure that their rights are protected; they are enabled to make informed choices and decisions in financial dealings.
To the issuer, the SEBI strives to provide a transparent and efficient market where they are able to raise resources but meet regulatory obligations.
To the intermediaries, the SEBI strives to render a market in which they can compete freely and operate in a manner which gives the investors and market participants that the market is efficient, orderly and fair.
Functions and responsibilities
The main functions of Security and Exchange Board of India is to introduce some important regulatory measures, market registration norms with eligibility criteria, code of conduct for intermediaries such as issue bankers, merchant bankers, brokers, sub-brokers, registrars, portfolio managers, credit rating agencies and others connected to securities market.
In order to make the securities market safe and transparent to investors SEBI has also introduced the comprehensive regulatory measures, prescribed registration norms, the eligibility criteria, the code of obligations and the code of conduct for different intermediaries like, bankers to issue, merchant bankers, brokers and sub-brokers, registrars, portfolio managers, credit rating agencies, underwriters and others. It has framed bye-laws, risk identification and risk management systems for Clearing houses of stock exchanges, surveillance system etc.
Thus salient functions are summed as:
REGULATORY FUNCTIONS:
a) Registration of brokers and sub-brokers and other players in the market.
b) Registration of collective investments schemes and Mutual Funds.
c) Regulation of stock exchanges and other self-regulatory organisations (SRO) merchant banks etc
d) Prohibition of all fraudulent and unfair trade practices
e) Controlling Insider Trading and take over bids and imposing penalties for such practices
DEVELOPMENT FUNCTIONS:
a) Investor education
b) Training of intermediaries.
c) Promotion of fair practices and Code of conduct.
d) Conducting Research and Publishing information useful to all market participants.
SEBI Complaints Redress System
SCORES is a web based centralized grievance redress system of SEBI. SCORES enables investors to lodge and follow up their complaints and track the status of redressal of such complaints online from the above website from anywhere. This enables the market intermediaries and listed companies to receive the complaints online from investors, redress such complaints and report redressal online.
The Securities and Exchange Board of India is the sole regulator for the securities market in India.
The SEBI is managed by six members, i.e. by the chairman who is nominated by central government & two members, i.e. officers of central ministry, one member from the RBI & the remaining two are nominated by the central government.
SEBI is headquartered in Mumbai, and has Northern, Eastern, Southern and Western regional offices in New Delhi, Kolkata, Chennai and Ahmedabad.
The basic objectives of the Board were identified as:
• to protect the interests of investors in securities;
• to promote the development of Securities Market;
• to regulate the securities market and
• for matters connected therewith or incidental thereto.
SEBI has to be responsive to the needs of three groups, which constitute:
• the issuers of securities
• the investors
• the market intermediaries.
To the investors, the SEBI strives to assure that their rights are protected; they are enabled to make informed choices and decisions in financial dealings.
To the issuer, the SEBI strives to provide a transparent and efficient market where they are able to raise resources but meet regulatory obligations.
To the intermediaries, the SEBI strives to render a market in which they can compete freely and operate in a manner which gives the investors and market participants that the market is efficient, orderly and fair.
Functions and responsibilities
The main functions of Security and Exchange Board of India is to introduce some important regulatory measures, market registration norms with eligibility criteria, code of conduct for intermediaries such as issue bankers, merchant bankers, brokers, sub-brokers, registrars, portfolio managers, credit rating agencies and others connected to securities market.
In order to make the securities market safe and transparent to investors SEBI has also introduced the comprehensive regulatory measures, prescribed registration norms, the eligibility criteria, the code of obligations and the code of conduct for different intermediaries like, bankers to issue, merchant bankers, brokers and sub-brokers, registrars, portfolio managers, credit rating agencies, underwriters and others. It has framed bye-laws, risk identification and risk management systems for Clearing houses of stock exchanges, surveillance system etc.
Thus salient functions are summed as:
REGULATORY FUNCTIONS:
a) Registration of brokers and sub-brokers and other players in the market.
b) Registration of collective investments schemes and Mutual Funds.
c) Regulation of stock exchanges and other self-regulatory organisations (SRO) merchant banks etc
d) Prohibition of all fraudulent and unfair trade practices
e) Controlling Insider Trading and take over bids and imposing penalties for such practices
DEVELOPMENT FUNCTIONS:
a) Investor education
b) Training of intermediaries.
c) Promotion of fair practices and Code of conduct.
d) Conducting Research and Publishing information useful to all market participants.
SEBI Complaints Redress System
SCORES is a web based centralized grievance redress system of SEBI. SCORES enables investors to lodge and follow up their complaints and track the status of redressal of such complaints online from the above website from anywhere. This enables the market intermediaries and listed companies to receive the complaints online from investors, redress such complaints and report redressal online.
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