The SEBI i.e. Securities Exchange Board of India is the regulator for all the security markets in India. It was established in 1988 and was given statutory power on 12 April 1992 through the SEBI Act, 1992.
SEBI has its Head Quarters at the business district of Bandra Kurla Complex in Mumbai, and has regional offices in New Delhi, Kolkata, Chennai and Ahmedabad.
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
- Regulations – A list of all regulations passed by SEBI
- SEBI Master Circulars
- SEBI Circulars – A list of all circulars passed by SEBI from time to time
All market participants are bound by the above.
SEBI functions and roles have been reviewed along the following major areas:
- Primary Markets: SEBI has regulated the primary market through
- The regulation of issuers’ access to market
- Regulation of information production at the time of issue
- 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
SEBI has Commenced regulating the commodity derivatives market under the Securities Contract Regulation Act (SCRA) 1956 with effect from September 28 2015, and the Forward Contracts Regulation Act (FCRA) 1952 got replaced with effect from September 29 2015.
The Official Website/Portal of SEBI is www.sebi.gov.in