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Securities and Exchange Board of India - Wikipedia, the free encyclopedia

Securities and Exchange Board of India

From Wikipedia, the free encyclopedia

The Securities and Exchange Board of India (frequently abbreviated SEBI) is the regulator for the securities market in India. It was established on 12 April 1992 through the SEBI Act, 1992.[1]

Securities and Exchange Board of India

Contents
1 History 2 Organization structure 3 Functions and responsibilities 3.1 Powers 3.2 SEBI Committees 4 Major achievements 5 Controversies 6 See also 7 References 8 External links
SEBI Bhavan, Mumbai headquarters

History
It was officially established by The Government of India in the year 1988 and given statutory powers in 1992 with SEBI Act 1992 being passed by the Indian Parliament. SEBI is having it's Headquarter at the business district of Bandra Kurla Complex in Mumbai, and has Northern, Eastern, Southern and Western Regional Offices in New Delhi, Kolkata, Chennai and Ahmedabad respectively.

Agency overview Formed Jurisdiction Headquarters Employees Agency executive 12 April 1992[1] Government of India Mumbai, Maharashtra 525 (2009)[2] U. K. Sinha, Chairman Website www.sebi.gov.in (http://www.sebi.gov.in)

Controller of Capital Issues was the regulatory authority before SEBI came into existence; it derived authority from the Capital Issues (Control) Act, 1947. Initially SEBI was a non statutory body without any statutory power. However in the year of 1995, the SEBI was given additional statutory power by the Government of India through an amendment to the Securities and Exchange Board of India Act 1992. In April, 1998 the SEBI was constituted as the regulator of capital markets in India under a resolution of the Government of India. The SEBI is managed by its members, which consists of following: a) The chairman who is nominated by Union Government of India. b) Two members, i.e. Officers from Union Finance Ministry. c) One member from The Reserve Bank of India. d) The remaining 5 members are nominated by Union Government of India, out of them at
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least 3 shall be whole-time members. The office of SEBI is situated at SEBI Bhavan, Bandra Kurla Complex, Bandra East, Mumbai- 400051, with its regional offices at Kolkata, Delhi,Chennai & Ahmadabad. It has recently opened local offices at Jaipur and Bangalore and is planning to open offices at Guwahati, Bhubaneshwar, Patna, Kochi and Chandigarh in Financial Year 2013 - 2014.

Organization structure
Further information: SEBI Organization Chart (http://www.sebi.gov.in/cms/sebi_data/about_us/OrgChart.html) Upendra Kumar Sinha was appointed chairman on 18 February 2011 replacing C. B. Bhave.[3] The Board comprises[4] Name Upendra Kumar Sinha Chairman Prashant Saran S Raman Arvind Mayaram V. K. Jairath magya Anand Sinha Naved Masood Prakash Chandra Whole Time Member Whole Time Member Joint Secretary, Ministry of Finance Member Appointed Deputy Governor, Reserve Bank of India Secretary, Ministry of Corporate Affairs Part Time Member Rajeev Kumar Agarwal Whole Time Member Designation

List of former Chairmen:[5] Name C. B. Bhave M. Damodaran G. N. Bajpai D. R. Mehta S. S. Nadkarni Dr. S. A. Dave From To

18 February 2008 18 February 2011 18 February 2005 18 February 2008 20 February 2002 18 February 2005 21 February 1995 20 February 2002 17 January 1994 12 April 1988 31 January 1995 17 January 1994 23 August 1990

G. V. Ramakrishna 24 August 1990

Functions and responsibilities

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SEBI has to be responsive to the needs of three groups, which constitute the market: the issuers of securities the investors the market intermediaries. SEBI has three functions rolled into one body: quasi-legislative, quasi-judicial and quasi-executive. It drafts regulations in its legislative capacity, it conducts investigation and enforcement action in its executive function and it passes rulings and orders in its judicial capacity. Though this makes it very powerful, there is an appeal process to create accountability. There is a Securities Appellate Tribunal which is a three-member tribunal and is presently headed by a former Chief Justice of a High court - Mr. Justice NK Sodhi. A second appeal lies directly to the Supreme Court.

Powers
For the discharge of its functions efficiently, SEBI has been vested with the following powers: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. to approve bylaws of stock exchanges. to require the stock exchange to amend their bylaws. inspect the books of accounts and call for periodical returns from recognized stock exchanges. inspect the books of accounts of a financial intermediaries. compel certain companies to list their shares in one or more stock exchanges. levy fees and other charges on the intermediaries for performing its functions. grant license to any person for the purpose of dealing in certain areas. delegate powers exercisable by it. prosecute and judge directly the violation of certain provisions of the companies Act. power to impose monetary penalties.

SEBI Committees
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Technical Advisory Committee Committee for review of structure of market infrastructure institutions Members of the Advisory Committee for the SEBI Investor Protection and Education Fund Takeover Regulations Advisory Committee Primary Market Advisory Committee (PMAC) Secondary Market Advisory Committee (SMAC) Mutual Fund Advisory Committee Corporate Bonds & Securitization Advisory Committee Takeover Panel SEBI Committee on Disclosures and Accounting Standards (SCODA) High Powered Advisory Committee on consent orders and compounding of offences Derivatives Market Review Committee Committee on Infrastructure Funds Regulation over Financial Terms of Various Athourities.

Major achievements
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SEBI has enjoyed success as a regulator by pushing systemic reforms aggressively and successively. SEBI is credited for quick movement towards making the markets electronic and paperless by introducing T+5 rolling cycle from July 2001 and T+3 in April 2002 and further to T+2 in April 2003. The rolling cycle of T+2[6] means, Settlement is done in 2 days after Trade date.[7] SEBI has been active in setting up the regulations as required under law. SEBI has also been instrumental in taking quick and effective steps in light of the global meltdown and the Satyam fiasco.[citation needed ] In October 2011, it increased the extent and quantity of disclosures to be made by Indian corporate promoters.[8] In light of the global meltdown, it liberalised the takeover code to facilitate investments by removing regulatory structures. In one such move, SEBI has increased the application limit for retail investors to Rs 2 lakh, from Rs 1 lakh at present.[9]

Controversies
Supreme Court of India heard a Public Interest Litigation (PIL) filed by India Rejuvenation Initiative that had challenged the procedure for key appointments adopted by Govt of India. The petition alleged that, "The constitution of the search-cum-selection committee for recommending the name of chairman and every whole-time members of SEBI for appointment has been altered, which directly impacted its balance and could compromise the role of the SEBI as a watchdog." [10][11] On 21 November 2011, the court allowed petitioners to withdraw the petition and file a fresh petition pointing out constitutional issues regarding appointments of regulators and their independence. The Chief Justice of India refused the finance ministrys request to dismiss the PIL and said that the court was well aware of what was going on in SEBI.[10][12] Hearing a similar petition filed by Bangaluru-based advocate Anil Kumar Agarwal, a two judge Supreme Court bench of Justice SS Nijjar and Justice HL Gokhale issued a notice to the Govt of India, SEBI chief UK Sinha and Omita Paul, Secretary to the President of India.[13][14] Further, it came into light that Dr KM Abraham (the then whole time member of SEBI Board) had written to the Prime Minister about malaise in SEBI. He said, "The regulatory institution is under duress and under severe attack from powerful corporate interests operating concertedly to undermine SEBI". He specifically said that Finance Minister's office, and especially his advisor Omita Paul, were trying to influence many cases before SEBI, including those relating to Sahara Group, Reliance, Bank of Rajasthan and MCX.[15][16]...

See also
Stock Exchange National Stock Exchange of India Forward Markets Commission (India) Securities Commission Financial regulation List of financial regulatory authorities by country Stock exchange Regulation D (SEC) Institute of Chartered Accountants of India Institute of Company Secretaries of India

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References
1. ^ a b "About SEBI" (http://web.archive.org/web/20101003235606/http://www.sebi.gov.in/sebiweb/stpages/about_sebi.jsp). SEBI. Archived from the original (http://www.sebi.gov.in/sebiweb/stpages/about_sebi.jsp) on 3 Oct 2010. Retrieved 26 September 2012. 2. ^ http://www.sebi.gov.in/acts/EmployeeDetails.html 3. ^ http://www.moneycontrol.com/news/cnbc-tv18-comments/a-rendezvou-cb-bhave%60s-3-years-atsebi_524022.html 4. ^ "Microsoft Word - Boardmembers.doc" (http://www.sebi.gov.in/Board.pdf) (PDF). Retrieved 2012-02-28. 5. ^ "Former Chairmen of SEBI" (http://www.sebi.gov.in/chairmen.pdf). SEBI. Retrieved 19 February 2011. 6. ^ "Discussion Paper Implementation of T+2 rolling settlement" (http://www.sebi.gov.in/commreport/t2.pdf). SEBI. Retrieved 25 October 2012. 7. ^ "Sebi gets rolling on T+2 settlement schedule" (http://articles.economictimes.indiatimes.com/2003-0104/news/27546293_1_settlement-cycle-institutional-trades-t-5). economictimes. Jan 4, 2003. Retrieved 25 October 2012. 8. ^ "SEBI makes it mandatory for companies to disclose promoters' shares" (http://articles.economictimes.indiatimes.com/2011-10-06/news/30250534_1_promoters-pledge-disclosures). Economic Times. Oct 6, 2011. Retrieved 26 October 2012. 9. ^ "Sebi doubles retail limit, tightens IPO norms" (http://business.rediff.com/report/2010/oct/26/sebi-tightens-iponorms.htm). business.rediff.com. Retrieved 27 Oct 2010. 10. ^ a b "Is Sebis Autonomy Under Threat?" (http://forbesindia.com/printcontent/30372). Nov 15, 2011. Retrieved April 10, 2012. 11. ^ "PIL alleges nexus in Sebi appointments" (http://timesofindia.indiatimes.com/business/india-business/PIL-allegesnexus-in-Sebi-appointments/articleshow/10612161.cms). Nov 5, 2011. Retrieved April 10, 2012. 12. ^ "SC allows eminent citizens to withdraw petition against SEBI chief's appointment" (http://www.moneylife.in/article/8/21576.html). Nov 21, 2011. Retrieved April 10, 2012. 13. ^ "Notice to Centre on quo warranto against SEBI chief" (http://www.thehindu.com/news/national/sebi-chiefappointment-under-sc-scrutiny/article3938457.ece). The Hindu. 26 September 2012. Retrieved 26 September 2012. 14. ^ "SC seeks Centres reply on PIL on Sebi chairmans appointment" (http://www.deccanherald.com/content/281208/sc-seeks-centres-reply-pil.html). The Deccan Herald. 26 September 2012. Retrieved 26 September 2012. 15. ^ "KM Abraham's letter to PM" (http://www.scribd.com/firstpost/d/70646038-K-M-Abraham-s-Letter-to-PM). Prime Minister's Office. 20 oct 2011. Retrieved April 11, 2012. 16. ^ "Pranab-Chidu feud may be revived over Sebi chief PIL" (http://www.firstpost.com/business/pranab-chidu-feudmay-be-revived-over-sebi-chief-pil-129459.html). Nov 12, 2011. Retrieved April 11, 2012.

External links
Securities and Exchange Board of India Website (http://www.sebi.gov.in) Retrieved from "http://en.wikipedia.org/w/index.php? title=Securities_and_Exchange_Board_of_India&oldid=553140984" Categories: Executive branch of the Indian government Regulatory agencies of India Organisations based in Mumbai Financial regulatory authorities of India Government agencies established in 1992 Government agencies of India Securities and Exchange Board of India
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