SECURITIES & EXCHANGE BOARD OF INDIA (SEBI)

Stock Exchange
Stock Exchange is a market in which securities are bought and sold. It is an essential component of a developed capital market.

Securities Contracts (Regulation) Act, 1956

Stock Exchange means anybody of individual, whether incorporated or not, constituted for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in securities.

Objectives and role of stock exchange

Bombay stock exchange: As enunciated in 1887 and remained unchanged 1. To safeguard the interest of investing public having dealings on the exchange and the members. 2. To establish and promote honourable and just practices in securities transactions.

Cont.

3.To promote, develop and maintain a well-regulated market for dealing in securities. 4.To promote industrial development in the country through efficient resource mobilization by way of investment incorporate securities.

Note
The exchange while providing an efficient market also upholds interests of investors and ensures redressal of their grieuances whether against companies or its own member-brokers. It also strives to educate and enlighten investors by making available necessary informative inputs.

Development in INDIA
In India, development of stock market is directed and dealings on stock exchanges are regulated by central govt. through 1. Securities contracts(regulation) act, 1956. 2. Securities and exchange board of India act, 1992.

HISTORY OF SEBI
Set up originally in 1988 by Govt. of India  Acquired statutory form in 1992 under SEBI Act 1992  Chairman is Sh. CB Bhave  Headquartered in Mumbai


ORGANISATION STRUCTURE
Board comprise of:  Chairman  Two members from ministers of law and finance  One RBI official  Two professionals having experience and special knowledge relating to securities market (Appointed by central govt.)

OBJECTIVES
Established in 1992 with three main objectives  To protect the interest of investors in securities  To promote the development of securities market  Make rules and regulations for the securities market

POWERS AND FUNCTIONS

1.

2.

Regulating business in stock exchanges and other securities markets. Registering and regulating working of stock brokers, sub-brokers, share transfer agents, bankers to an issue, trustees of trust deeds, registrars to an issue, merchant bankers, under-writer, portfolio managers, investment advisors and such other intermediaries who may be associated with securities market in any manner.

Cont.
3.Registering and regulating working of collective investment schemes, including mutual funds. 4.Promoting and regulating working of collective investment schemes, including mutual funds 5.Promoting and regulating self-regulatory organisations. 6.Prohibiting fraudulent and unfair trade practices in securities market.

Cont.
6.Promoting investor education and training of intermediaries in stock market. 7.Prohibiting inside trading in securities. 8.Regulating substantial acquisition of shares and take-over of companies. 9.Calling for information from, undertaking inspection, conducting enquiries and audit of stock exchanges and intermediaries and self-regulatory organisations in the securities market.

Cont.
10.Conducting research. 11.Levying fees or other charges for the purpose of the act. 12.Performing such functions and exercising such powers under the provisions of securities contracts (regulation) act,1956 as may be delegated by central govt. 13.Such other functions as may be prescribed by central govt.

Thank you!!!