Functions of SEBI (Securities and Exchange Board of India)

functions of SEBI

The Securities and Exchange Board of India (SEBI) was established on April 12, 1992 in accordance with the provisions of the Securities and Exchange Board of India Act, 1992. Securities and Exchange Board of India was constituted under the Resolution of the Government of India on 12th day of April, 1988. The head Office of SEBI is situated at Mumbai. The affairs of SEBI are managed by various departments and regional offices. It has constituted various committees from time to time to efficiently manage the working and development of securities market. The current Chairman of SEBI is Mr Madhabi Puri Buch. The functions of SEBI include regulation, development and promotion of securities market in India.

Board of SEBI

The management of Board of SEBI consists of the following members:

  • Chairman
  • Two members  from  amongst  the  officials  of  the of  the  Central  Government dealing with Finance
  • One member from the Reserve Bank
  • Five other  members  of  whom  at  least  three  shall  be  the  whole-time  members, to  be appointed by the Central Government

The chairman of SEBI is appointed by Central Government.

Functions of SEBI

The various functions of SEBI are:

  • To protect  the interests  of  investors  in  securities market
  • To promote  the  development  of securities market
  • To regulate the business in stock exchanges and any other securities markets
  • To register and  regulate  the  working  of  stock  brokers,  sub-brokers,  share  transfer agents,  bankers  to  an  issue,  trustees  of  trust  deeds,  registrars  to  an  issue,  merchant bankers,   underwriters,   portfolio   managers,   investment   advisers   and   such   other intermediaries who may be associated with securities markets in any manne
  • To register and regulate the working of the depositories, participants, custodians of  securities,  foreign  institutional  investors,  credit  rating  agencies
  • To register and   regulate   the   working   of venture   capital   funds   and   collective investment schemes including mutual funds
  • To promote and regulate self-regulatory organizations
  • To prohibit fraudulent and unfair trade practices relating to securities markets
  • To promote investors‘ education and training of intermediaries of securities markets
  • To prohibit insider trading in securities
  • To regulate substantial acquisition of shares and take over of companies
  • To conducting research for efficient working and development of securities market

Securities Appellate Tribunal

Securities Appellate Tribunal is a statutory body established under the provisions of Section 15K of the Securities and Exchange Board of India Act, 1992. The purpose of SAT is to:

  • Hear and dispose of appeals against orders passed by the Securities and Exchange Board of India or by an adjudicating officer under the Act
  • Exercise jurisdiction, powers and authority conferred on the Tribunal by or under this Act or any other law for the time being in force.

Investor Protection and Education Fund

The Investor Protection and Education Fund have been established by the SEBI and funds are utilized for promotion of investor’s education and awareness.

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