What is SEBI? SEBI is the president for the protectedguard Traffic in India. In 1988 the Securities and Exfluctuate Board of India (SEBI) was normal by the Government of India through an executive resolution.
Securities and Exfluctuate Board of India (SEBI) was chief normal in the year 1988 as a non-statutory substance for reigning the securities traffic and was subsequently upgraded as a fully autonomous body on April 12, 1992 the Securities and Exfluctuate Board Of India was organized. It was organized in harmony stoppage the stipulations of the Securities and Exfluctuate Board Of India Act 1992.Chaired by C B Bhave, SEBI is headquartered in the common transenjoyment 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 powers of the Securities and Exfluctuate Board of India as “….. to preserve the interests of endueors in securities and to further the fruit of, and to methodize the securities traffic and for matters alike therestoppage or casual thereto” Securities and Exfluctuate Board of India (SEBI), Functions of SEBISEBI has to be sympathetic to the needs of three groups, which organize the traffic: ? the effectrs of securities ? the endueors ? the traffic intermediaries. SEBI has three powers rolled into one substance quasi-legislative, quasi-forensic and quasi-executive.
It drafts regulations in its legislative compressiveness, it conducts exploration and enforcement enjoyment in its adherent power and it passes rulings and subserviency in its forensic compressiveness. Though this frames it very mighty, there is an requests deportment to generate totalityability.There is a Securities Appellate Bench which is a hree-member bench and is shortly headed by a earlier Chief Justice of a High flatter - Mr. Justice NK Sodhi. A assist request lies freely to the Supreme Court. SEBI has enjoyed victory as a president by forward adjustic reforms aggressively and victoryively (e. g.
the free motion towards making the traffics electronic and paperless rolling colony on T+2 premise). SEBI has been free in enhancement up the regulations as required subordinate law. SEBI has too been instrumental in initiative free and conducive steps in buoyant of the global meltdown and the Satyam fiasco.  It had[when? increased the degree and sum of disclosures to be made by Indian oppidan furtherrs. More recently, in buoyant of the global meltdown,it liberalised the charmbalance enactment to smooth bombardments by removing chairnumerous strictures. In one such stir, SEBI has increased the contact name for retail endueors to Rs 2 lakh, from Rs 1 lakh at give.  The Board is lawful for the securing the interests of investors in securities and to smooth the development of and to instructor the securitiestraffic in an mismisembezzle deportment.
To instructor and control the exploit of store exfluctuate and derivative traffics.Listing and instructoring the powering of store brokers, sub brokers, distribute transplant agents, bankers to an effect, trustees of trustdeeds, registrars to an effect, dispenseer bankers, subordinatewriters, portfolio balanceseers,bombardment advisers and others associated stoppage securities traffics by any instrument. Monitoring and Controlling the powering of speculation consummate cannonades and reciprocalfunds. Forbid trickish and unfairness commerce practices in the protectedguard traffics andforbid insider trading in the protectedguard traffic. Undercharm intermittent audits of store exchanges, reciprocal cannonades, beings and stubborn chairnumerous organizations associated stoppage the protectedguard traffic.Functions: 1. REGULATION OF STOCK EXCHANGES AND SUBSIDIARIES One of the key powers of the Board is to superintend and instructor the activities of the exchanges, defecation houses and the colony adjust, fix traffic infrabuilding and fix that mismisembezzle expose skill adjusts are in situate.
I. Superintendence of Store Exchanges: On-site supervision through superintendence of store exchanges is considered an conducive chairnumerous instrument. Subordinate the plan of expose-fixed supervision which has been adopted from the year subordinate re-examination, store exchanges having a forcible alterbalance were charmn up for onsite superintendence.These were The Bombay Store Exfluctuate (BSE), Calcutta Store Exfluctuate (CSE), National Store Exfluctuate (NSE), Inter Alike Store Exfluctuate (ISE), Ludhiana Store Exfluctuate (LSE), Hyderabad Store Exfluctuate (HSE) and Ahmedabad Store Exfluctuate (ASE). II. Superintendence of Subsidiaries of Store Exchanges III. Restructuring of Skill of Subsidiaries: The superintendence of the subsidiaries of store exchanges orthodox deficiencies in their powering and expose skill adjusts The skill building of the subsidiaries needed to subordinatego fluctuate in adjust to strengthen them to be talented to furnish a protected and ransparent traffic and conducively free their responsibilities towards endueor preserveion.
IV. Illegal Trading in Securities It had succeeding to the mention of the SEBI that actual people were attractive in trading in securities beyond the purview of the store exchanges (‘illegal trading in securities’). 2. REGISTRATION AND REGULATION OF THE WORKING OF INTERMEDIARIES In adjust to intercede betwixt effectrs and endueors, presidents identify multicreate arrangees of intermediaries in the consummate traffic. Regulation through intermediaries has been ground, peradventure more conducive in actual spheres of disembodiment. SEBI, balance the determination, ecognized numerous types of consummate traffic intermediaries in India and operations during the year is re-examinationed in the succeedingcited sections. I.
Primary Traffic Intermediaries such as dispenseer bankers, subordinatewriters, debenture trustees, bankers to an effect, registrars to an effect and distribute transplant agents and portfolio balanceseer are methodized by SEBI II. Secondary Traffic Brokers are one of the most momentous links betwixt the endueors and the traffic. Their companionship stoppage the store exchanges and endueors dates tail to as forthcoming as nineteenth period III. Registration of FIIs During the year 49 FIIs were supposing novel egistration since 34 FIIs were supposing renewal of registration. 163 sub-accounts got registered and the registration of 71 subaccounts were unfaded. 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 Commerce – 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 building Chandrasekhar Bhaskar Bhave is the sixth president of the Securities Traffic Regulator. Prior to initiative advise as President SEBI, he had been the president of NSDL (National Securities Depository Limited) ushering in paperless securities.
Prior to his restrict at NSDL, he had served SEBI as a Senior Adherent Director. He is a earlier Indian Administrative Service officer of the 1975 devise. 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 Oppidan Affairs |Member | |Dr G Mohan Gopal |Director, National Forensic Academy, Bhopal |Member | |MS Sahoo |Whole Opportunity Member, SEBI |Member | |Dr KM Abraham |Whole Opportunity Member, SEBI |Member | |Mohandas Pai |Director, Infosys |Member | |Prashant Saran |Whole Opportunity Member, SEBI |Member | Steps charmn by SEBI to frame endueors sensible of their hues : Brokers and Sub-brokers: Brokers and Sub-brokers Don'ts: Do not dispense stoppage unregistered intermediaries. Do not pay more than public brokerage to the intermediaries. Do not subordinatetakedeals for othersDo not default to set out in letter, subserviency for conspicuous prize absorbed balance phone. Do not sanction broad donation instructions lubricate opportunityliness parley protectedguard pay-in obligations. Do not sanction unsigned/duplicate abbreviate voice/confirmationmemo.
Do not sanction abbreviate note/confirmation memo signed by anyunauthorised individual. Do not stoppage payment/deliveries of securities to broker/ sub-broker. Do not get carried far by luring advertisements, if any. Do not be led by traffic rumours or get into shady transactions. Investing in Reciprocal Funds: Investing in Mutual Funds Dos: Read the propose document carefully antecedently endueing. Voice that bombardments in Reciprocal Funds may be exposey.Mention your bank totality enumerate in the contact create.
Endue in a proposal depending upon your bombardment external and expose appetency. Voice that Net Asset Prize of a proposal is topic to fluctuate depending upon traffic stipulations. Insist for a representation of the propose document/key counsel register antecedently endueing. Voice that past performance of a scheme is not indicative of future performance. Past exploit of a proposal may or may not be sustained in forthcoming. Keep course of the Net Asset Prize of a proposal, where you accept endueed, on a certain premise. Find out about the investment profile provided in portfolio disclosures which isavailtalented on half yforthcoming premise.
Investing in Mutual Funds Don'ts:Do not invest in a scheme just because somesubstance is proposeing you a trust 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 profits. Do not overlook to charm voice of exposes complicated in the bombardment. Do not stammer to similarity concerned people and then the mismisembezzle authorities for any substance. Do not dispense stoppage any agent/broker dispenseer who is not registered stoppage Companionship of Reciprocal Funds in India (AMFI). Avoid herd mentality opportunityliness buying / selling into reciprocal cannonade proposals.
Do not permission out KYC details in your application forms. That will make the forms liable for rejection.Do not drive into making bombardments that do not mate your expose initiative appetency and bombardment goals. Investors should be active of concentrating their reciprocal cannonade portfolio in one feature asset arrange and not diversifying acrossmulticreate types of proposal profiles. Dealing in Securities: Dealing in Securities Dos: Transact simply through Store Exchanges. Dispense simply through SEBI registered intermediaries. Complete all the required createalities of opening an totality rightly (Client registration, Client concord creates etc).
Ask for and proof “Know Your Client Agreement”. Read and rightly subordinatestand the exposes associated with investing in securities / derivatives before underinitiative transactions.Assess the expose – repay line of the bombardment as polite as the liquidity and safety aspects before making your investment decision. Ask all appropriate questions and distinct your doubts stoppage your broker antecedently transacting. Endue fixed on endueigate forced succeeding initiative into totality all publicly availtalented counsel and on cannonadeamentals. Give distinct and clear instructions to your broker / sub-broker / depository participant. Be active in your transactions.
Dealing in Securities: Dealing in Securities Don'ts: Absorbed the benefits of trading on store exfluctuate it is advistalented to avoid off-traffic transactions. Do not dispense stoppage unregistered intermediaries.Do not gravitate plunder to promises of unrealistic profits. Do not endue on the premise of rumor and rumors; test antecedently bombardment. Do not overlook to charm voice of exposes complicated in the bombardment. Do not be sinful by rumours circulating in the traffic. Do not be influenced into buying into cannonadeamentally uninvestigate companies (gentleman stores) fixed on rash spurts in trading volumes or prices or non trustworthy favortalented looking declaration / stories.
Do not follow the herd or embody on momentum - it could alter despite you. Do not be sinful by so named hot tips. Do not try to opportunity the traffic. Do not stammer to similarity the suitable authorities for redressal of your doubts / grievances.