What is Securities Exchange board of India or (SEBI)?

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SEBI is managed by the following members of the board:

• The Chairman who is nominated by the Union Government of India.
• Two members from the Union Finance Ministry
• One member from the Reserve Bank of India
• The remaining 5 members are nominated by the Union Government of India, out of them

SEBI has to be responsive to 3 groups which constitute the market:

• The issuer of securities
• The investor
• The market intermediaries

Following are the powers vested in SEBI:

• To regulate and approve by-laws of stock exchanges
• Inspect the books of accounts of recognized stock exchanges and call for periodical returns
• Inspect the books of financial Intermediaries.
• Compel certain companies to get listed on one or more stock exchanges
• To handle the registration of brokers

SEBI exercises it's powers by passing any one of the following from time to time

• Orders
• Regulations - A list of all regulations passed by SEBI
• Rules
• SEBI Master Circulars
• SEBI Circulars - A list of all circulars passed by SEBI from time to time

SEBI functions & roles have been reviewed along with following major areas:

• Primary Markets: SEBI has regulated the primary market through

1. The regulation of issuers’ access to market
2. Regulation of information production at the time of issue
3. Regulation of processes and procedures relating to issuance of securities

• Disclosure: Disclosure standards are not limited to accounting information but was extended to other issue related communications such as advertisements.
• Corporate Governance: SEBI has made a constant effort to improve the standards of Corporate Governance in India.
• Settlement Systems
• Dematerialization of securities
• Institutionalization of Trading and ownership of securities
• Market Integrity and Insider Trading