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 Ajay Tyagi. 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:
- 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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