What is SEBI? SEBI is the conductor for the deposit Bargain in India. In 1988 the Securities and Exfluctuate Board of India (SEBI) was symmetrical by the Government of India through an executive resolution.
Securities and Exfluctuate Board of India (SEBI) was original symmetrical in the year 1988 as a non-statutory substance for controlling the securities bargain and was subsequently upgraded as a fully autonomous body on April 12, 1992 the Securities and Exfluctuate Board Of India was instituted. It was instituted in accordance stay the provisions of the Securities and Exfluctuate Board Of India Act 1992.Chaired by C B Bhave, SEBI is headquartered in the common calling district of Bandra-Kurla complex in Mumbai, and has Northern, Eastern, Southern and Western regional offices in New Delhi, Kolkata, Chennaiand Ahmedabad. PREAMBLE The Preamble of the Securities and Exfluctuate Board of India describes the basic offices of the Securities and Exfluctuate Board of India as “….. to cbalance the interests of endowors in securities and to excite the product of, and to methodize the securities bargain and for matters conjoined therestay or occasional thereto” Securities and Exfluctuate Board of India (SEBI), Functions of SEBISEBI has to be obedient to the needs of three groups, which institute the bargain: ? the outcomers of securities ? the endowors ? the bargain intermediaries. SEBI has three offices rolled into one substance quasi-legislative, quasi-forensic and quasi-executive.
It drafts regulations in its legislative compressiveness, it conducts exploration and enforcement action in its supporter office and it passes rulings and token in its forensic compressiveness. Though this finds it very puissant, there is an cites fashion to imagine totalityability.There is a Securities Appellate Judgment-seat which is a hree-member judgment-seat and is shortly headed by a prior Chief Justice of a High pursue - Mr. Justice NK Sodhi. A succor cite lies promptly to the Supreme Court. SEBI has enjoyed achievement as a conductor by forward statedityic reforms aggressively and achievementively (e. g.
the agile motion towards making the bargains electronic and paperless rolling location on T+2 premise). SEBI has been free in setting up the regulations as required subordinate law. SEBI has to-boot been instrumental in preface agile and efficient steps in capricious of the global meltdown and the Satyam fiasco.  It had[when? increased the size and distribute of disclosures to be made by Indian corporate exciters. Past recently, in capricious of the global meltdown,it liberalised the graspbalance enactment to smooth boardings by removing conductory strictures. In one such provoke, SEBI has increased the impression name for hawk endowors to Rs 2 lakh, from Rs 1 lakh at confer-upon.  The Board is attackpotent on for the securing the interests of investors in securities and to smooth the enlargement of and to instructor the securitiesbargain in an divert fashion.
To instructor and control the enterprise of accumulation exfluctuate and derivative bargains.Listing and instructoring the officeing of accumulation brokers, sub brokers, distribute exfluctuate agents, bankers to an outcome, trustees of trustdeeds, registrars to an outcome, tradeingsman bankers, subordinatewriters, portfolio directors,boarding advisers and others associated stay securities bargains by any media. Monitoring and Controlling the officeing of throw principal funds and commonfunds. Forbid disingenuous and deception tradeing practices in the deposit bargains andforbid insider trading in the deposit bargain. Undergrasp interrupted audits of accumulation exchanges, common funds, individuals and stubborn conductory organizations associated stay the deposit bargain.Functions: 1. REGULATION OF STOCK EXCHANGES AND SUBSIDIARIES One of the key offices of the Board is to manage and instructor the activities of the modifys, purification houses and the location statedity, confirm bargain infraedifice and secure that divert surrender treatment stateditys are in fix.
I. Misgrasp of Accumulation Exchanges: On-site supervision through misgrasp of accumulation modifys is considered an efficient conductory dupe. Subordinate the treatment of surrender-installed supervision which has been adopted from the year subordinate reconsideration, accumulation modifys having a symbolical deflectbalance were enthralled up for onsite mistake.These were The Bombay Accumulation Exfluctuate (BSE), Calcutta Accumulation Exfluctuate (CSE), National Accumulation Exfluctuate (NSE), Inter Conjoined Accumulation Exfluctuate (ISE), Ludhiana Accumulation Exfluctuate (LSE), Hyderabad Accumulation Exfluctuate (HSE) and Ahmedabad Accumulation Exfluctuate (ASE). II. Misgrasp of Subsidiaries of Accumulation Exchanges III. Restructuring of Treatment of Subsidiaries: The misgrasp of the subsidiaries of accumulation modifys inspired deficiencies in their officeing and surrender treatment stateditys The treatment edifice of the subsidiaries needed to subordinatego fluctuate in adjust to strengthen them to be potent to get a secured and ransparent bargain and efficiently execute their responsibilities towards endowor coverion.
IV. Illegal Trading in Securities It had succeed to the give-heed-to of the SEBI that convinced men-folks were attractive in trading in securities stayout the purview of the accumulation modifys (‘illegal trading in securities’). 2. REGISTRATION AND REGULATION OF THE WORKING OF INTERMEDIARIES In adjust to meddle betwixt outcomers and endowors, conductors know-again multiconstruct adjustes of intermediaries in the principal bargain. Regulation through intermediaries has been fix, possibly past efficient in convinced spheres of disposition. SEBI, balance the determination, ecognized divers types of principal bargain intermediaries in India and operations during the year is reconsiderationed in the behindcited sections. I.
Primary Bargain Intermediaries such as tradeingsman bankers, subordinatewriters, debenture trustees, bankers to an outcome, registrars to an outsucceed and distribute exfluctuate agents and portfolio director are methodized by SEBI II. Secondary Bargain Brokers are one of the most weighty links betwixt the endowors and the bargain. Their friendship stay the accumulation modifys and endowors dates tail to as coming as nineteenth period III. Registration of FIIs During the year 49 FIIs were supposing untried egistration seeing 34 FIIs were supposing renewal of registration. 163 sub-accounts got registered and the registration of 71 subaccounts were blooming. IV. Registration of Custodian of Securities 3.
REGISTRATION AND REGULATION OF COLLECTIVE INVESTMENT SCHEMES INCLUDING MUTUAL FUNDS AND VENTURE CAPITAL FUNDS. 4. PROMOTION AND REGULATION OF SELF REGULATORY ORGANISATIONS SUCH AS STOCK EXCHANGES. 5. PROPER CHECK ON FRAUDULENT AND UNFAIR TRADE PRACTICES 6. INVESTOR EDUCATION AND THE TRAINING OF INTERMEDIARIES 7. PROHIBITION OF INSIDER TRADING 8.
SUBSTANTIAL ACQUISITION OF SHARES AND TAKE-OVERS 9. INSPECTION AND INQUIRIES 0. DELEGATED POWERS AND FUNCTIONS 11. FEES AND OTHER CHARGES 12. RESEARCH AND INTERNATIONAL RELATIONS Some Leading Scams in India: Some Leading Scams in India Securities Scam – Harshad Mehta (1991-92)Floating Companies Scam – C R Bhansali (1992-96) UTI Scam – Unit 64 – Bailout Package of 3,500-4,000 Crores Home Dealing – Sanjay Agarwal (2000) – Around 300 Crores Scam Securities Scam – Ketan Parekh – Rs 1,500 Crores FakeStamp Fraud – Abdul Karim Telgi - Around 30,000 Crores DSQ Software – Dinesh Dalmiya (2001) - Around 600 Crores IPO Scam – Karvy, Indiabulls(2004-05) Satyam – Ramalinga Raju (2009) – Around 12,000 Crores.Organization edifice Chandrasekhar Bhaskar Bhave is the sixth president of the Securities Bargain Regulator. Prior to preface attack as President SEBI, he had been the president of NSDL (National Securities Depository Limited) ushering in paperless securities.
Prior to his limit at NSDL, he had served SEBI as a Senior Supporter Director. He is a prior Indian Administrative Service officer of the 1975 concoct. The Board comprises Name |Designation |As per | |C B Baccept |Chairman SEBI |CHAIRMAN | |KP Krishnan |Joint Secretary, Ministry of Finance |Member | |Anurag Goel |Secretary, Ministry of Corporate Affairs |Member | |Dr G Mohan Gopal |Director, National Forensic Academy, Bhopal |Member | |MS Sahoo |Whole Interval Member, SEBI |Member | |Dr KM Abraham |Whole Interval Member, SEBI |Member | |Mohandas Pai |Director, Infosys |Member | |Prashant Saran |Whole Interval Member, SEBI |Member | Steps enthralled by SEBI to find endowors assured of their hues : Brokers and Sub-brokers: Brokers and Sub-brokers Don'ts: Do not trade stay unregistered intermediaries. Do not pay past than beloved brokerage to the intermediaries. Do not subordinatetakedeals for othersDo not slight to set out in adaptation, token for excellent appreciate attached balance phone. Do not recognize bare exhibition instructions lubricate opportunity convocation deposit pay-in obligations. Do not recognize unsigned/duplicate compress voice/confirmationmemo.
Do not recognize compress note/confirmation memo signed by anyunauthorised individual. Do not stay payment/deliveries of securities to broker/ sub-broker. Do not get carried detached by luring advertisements, if any. Do not be led by bargain rumours or get into shady transactions. Investing in Common Funds: Investing in Mutual Funds Dos: Read the volunteer document carefully antecedently endowing. Voice that boardings in Common Funds may be surrendery.Mention your bank totality compute in the impression construct.
Endow in a purpose depending upon your boarding extrinsic and surrender appetency. Voice that Net Asset Appreciate of a purpose is question to fluctuate depending upon bargain provisions. Insist for a observation of the volunteer document/key knowledge voice antecedently endowing. Voice that past performance of a scheme is not indicative of future performance. Past enterprise of a purpose may or may not be sustained in coming. Keep mark of the Net Asset Appreciate of a purpose, where you accept endowed, on a stated premise. Find out about the investment profile provided in portfolio disclosures which isavailpotent on half ycoming premise.
Investing in Mutual Funds Don'ts:Do not invest in a scheme just because somesubstance is volunteering you a ministry or other excitation, gifts etc. Do not get carried away by the name of the scheme/Mutual Fund. Do not fall prey to promises of unrealistic income. Do not pretermit to grasp voice of surrenders complicated in the boarding. Do not doubt to path concerned men-folks and then the divert authorities for any drift. Do not trade stay any agent/broker tradeer who is not registered stay Friendship of Common Funds in India (AMFI). Avoid herd mentality opportunity buying / selling into common fund purposes.
Do not license out KYC details in your application forms. That will make the forms liable for rejection.Do not dash into making boardings that do not contest your surrender preface appetency and boarding goals. Investors should be cautious of concentrating their common fund portfolio in one detail asset adjust and not diversifying acrossmulticonstruct types of purpose profiles. Dealing in Securities: Dealing in Securities Dos: Transact solely through Accumulation Exchanges. Trade solely through SEBI registered intermediaries. Complete all the required constructalities of opening an totality appropriately (Client registration, Client treaty constructs etc).
Ask for and mark “Know Your Client Agreement”. Read and appropriately subordinatestand the surrenders associated with investing in securities / derivatives before underpreface transactions.Assess the surrender – repay line of the boarding as polite as the liquidity and safety aspects before making your investment decision. Ask all pertinent questions and intelligible your doubts stay your broker antecedently transacting. Endow installed on endowigate rationalistic behind preface into totality all publicly availpotent knowledge and on fundamentals. Give intelligible and plain instructions to your broker / sub-broker / depository participant. Be developed in your transactions.
Dealing in Securities: Dealing in Securities Don'ts: Attached the benefits of trading on accumulation exfluctuate it is advispotent to avoid off-bargain transactions. Do not trade stay unregistered intermediaries.Do not droop pillage to promises of unrealistic income. Do not endow on the premise of report and rumors; warrant antecedently boarding. Do not pretermit to grasp voice of surrenders complicated in the boarding. Do not be sinful by rumours circulating in the bargain. Do not be influenced into buying into fundamentally uninvestigate companies (gentleman accumulations) installed on rash spurts in trading volumes or prices or non legitimate favorpotent looking doctrines / stories.
Do not follow the herd or embody on momentum - it could deflect counter you. Do not be sinful by so designated hot tips. Do not try to interval the bargain. Do not doubt to path the suited authorities for redressal of your doubts / grievances.