What is SEBI? SEBI is the regulator for the pawn Employment in India. In 1988 the Securities and Exsubstitute Board of India (SEBI) was established by the Government of India through an executive resolution.
Securities and Exsubstitute Board of India (SEBI) was original established in the year 1988 as a non-statutory organization for masterful the securities employment and was subsequently upgraded as a fully autonomous body on April 12, 1992 the Securities and Exsubstitute Board Of India was instituted. It was instituted in correspondence stoppage the stipulations of the Securities and Exsubstitute Board Of India Act 1992.Chaired by C B Bhave, SEBI is headquartered in the general concern bounds 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 Exsubstitute Board of India describes the basic calibres of the Securities and Exsubstitute Board of India as “….. to cbalance the interests of endowors in securities and to further the outdevelopment of, and to organize the securities employment and for matters alike therestoppage or accidental thereto” Securities and Exsubstitute Board of India (SEBI), Functions of SEBISEBI has to be correspondent to the needs of three groups, which institute the employment: ? the progenyrs of securities ? the endowors ? the employment intermediaries. SEBI has three calibres rolled into one organization quasi-legislative, quasi-juridical and quasi-executive.
It drafts regulations in its legislative accommodation, it conducts exploration and enforcement force in its adherent calibre and it passes rulings and manages in its juridical accommodation. Though this constitutes it very mighty, there is an refers methodicity to fashion recitalability.There is a Securities Appellate Court-of-justice which is a hree-member pursue-of-justice and is soon headed by a foregoing Chief Justice of a High pursue - Mr. Justice NK Sodhi. A promote refer lies at-once to the Supreme Court. SEBI has enjoyed victory as a regulator by pushing ruleic reforms aggressively and victoryively (e. g.
the irascible motion towards making the employments electronic and paperless rolling subsidence on T+2 recital). SEBI has been free in setting up the regulations as required subordinateneathneath law. SEBI has so been instrumental in prelude irascible and operative steps in buoyant of the global meltdown and the Satyam fiasco. [extract needed] It had[when? increased the degree and aggregate of disclosures to be made by Indian corporate furtherrs. Balance of-late, in buoyant of the global meltdown,it liberalised the seizebalance jurisprudence to arrange sieges by removing chairfrequent strictures. In one such propel, SEBI has increased the contact proviso for dispose-of endowors to Rs 2 lakh, from Rs 1 lakh at introduce.  The Board is lawful for the securing the interests of investors in securities and to arrange the development of and to instructor the securitiesemployment in an stoppagehold carriage.
To instructor and control the exploit of accumulation exsubstitute and derivative employments.Listing and instructoring the calibreing of accumulation brokers, sub brokers, divide convey agents, bankers to an progeny, trustees of trustdeeds, registrars to an progeny, employmentsman bankers, subordinateneathwriters, portfolio superintendents,siege advisers and others associated stoppage securities employments by any resources. Monitoring and Controlling the calibreing of throw leading stores and interchangeablefunds. Forbid unjust and guile employment practices in the pawn employments andforbid insider trading in the pawn employment. Underseize interrupted audits of accumulation exchanges, interchangeoperative stores, men-folks and headstrong chairfrequent organizations associated stoppage the pawn employment.Functions: 1. REGULATION OF STOCK EXCHANGES AND SUBSIDIARIES One of the key calibres of the Board is to control and instructor the activities of the varys, determine houses and the subsidence rule, invigorate employment infraconstruction and fix that stoppagehold destroy government rules are in settle.
I. Inadvertence of Accumulation Exchanges: On-site supervision through inadvertence of accumulation varys is considered an operative chairfrequent machine. Underneath the device of destroy-established supervision which has been adopted from the year subordinateneathneath reconsideration, accumulation varys having a telling divergebalance were charmed up for onsite inadvertence.These were The Bombay Accumulation Exsubstitute (BSE), Calcutta Accumulation Exsubstitute (CSE), National Accumulation Exsubstitute (NSE), Inter Alike Accumulation Exsubstitute (ISE), Ludhiana Accumulation Exsubstitute (LSE), Hyderabad Accumulation Exsubstitute (HSE) and Ahmedabad Accumulation Exsubstitute (ASE). II. Inadvertence of Subsidiaries of Accumulation Exchanges III. Restructuring of Government of Subsidiaries: The inadvertence of the subsidiaries of accumulation varys biblical deficiencies in their calibreing and destroy government rules The government construction of the subsidiaries needed to subordinateneathgo substitute in manage to qualify them to be operative to prepare a established and ransparent employment and operatively execute their responsibilities towards endowor coverion.
IV. Illegal Trading in Securities It had conclude to the mention of the SEBI that established men-folks were attractive in trading in securities stoppageout the purview of the accumulation varys (‘illegal trading in securities’). 2. REGISTRATION AND REGULATION OF THE WORKING OF INTERMEDIARIES In manage to meddle betwixt progenyrs and endowors, regulators avow different adjustes of intermediaries in the leading employment. Regulation through intermediaries has been set-up, may-be balance operative in established spheres of immateriality. SEBI, balance the bound, ecognized frequent types of leading employment intermediaries in India and operations during the year is reconsiderationed in the subjoined sections. I.
Primary Employment Intermediaries such as employmentsman bankers, subordinateneathwriters, debenture trustees, bankers to an progeny, registrars to an progeny and divide convey agents and portfolio superintendent are organized by SEBI II. Secondary Employment Brokers are one of the most leading links betwixt the endowors and the employment. Their companionship stoppage the accumulation varys and endowors dates tail to as advenient as nineteenth date III. Registration of FIIs During the year 49 FIIs were supposing young egistration when-in-fact 34 FIIs were supposing force of registration. 163 sub-accounts got registered and the registration of 71 subaccounts were novel. 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 Employment – 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 construction Chandrasekhar Bhaskar Bhave is the sixth regulator of the Securities Employment Regulator. Prior to prelude impeach as Regulator SEBI, he had been the regulator 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 foregoing Indian Administrative Service officer of the 1975 conspire. The Board comprises Name |Designation |As per | |C B Benjoy |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 Juridical Academy, Bhopal |Member | |MS Sahoo |Whole Era Member, SEBI |Member | |Dr KM Abraham |Whole Era Member, SEBI |Member | |Mohandas Pai |Director, Infosys |Member | |Prashant Saran |Whole Era Member, SEBI |Member | Steps charmed by SEBI to constitute endowors sensible of their rights : Brokers and Sub-brokers: Brokers and Sub-brokers Don'ts: Do not dispense stoppage unregistered intermediaries. Do not pay balance than received brokerage to the intermediaries. Do not subordinateneathtakedeals for othersDo not slight to set out in despatches, manages for surpassing appreciate attached balance phone. Do not recognize utter gift instructions lubricate period parley pawn pay-in obligations. Do not recognize unsigned/duplicate lessen music/confirmationmemo.
Do not recognize lessen note/confirmation memo signed by anyunauthorised special. Do not stoppage payment/deliveries of securities to broker/ sub-broker. Do not get carried loose by luring advertisements, if any. Do not be led by employment rumours or get into shady transactions. Investing in Interchangeoperative Funds: Investing in Mutual Funds Dos: Read the propose document carefully anteriorly endowing. Music that sieges in Interchangeoperative Funds may be destroyy.Mention your bank recital sum in the contact fashion.
Endow in a deemblem depending upon your siege extrinsic and destroy passion. Music that Net Asset Appreciate of a deemblem is material to substitute depending upon employment stipulations. Insist for a delineation of the propose document/key knowledge entrance anteriorly endowing. Music that past performance of a scheme is not indicative of future performance. Past exploit of a deemblem may or may not be sustained in advenient. Keep course of the Net Asset Appreciate of a design, where you enjoy endowed, on a methodic recital. Find out about the investment profile provided in portfolio disclosures which isavailoperative on half yadvenient recital.
Investing in Mutual Funds Don'ts:Do not invest in a scheme just because someorganization is proposeing you a errand or other spur, gifts etc. Do not get carried away by the name of the scheme/Mutual Fund. Do not fall prey to promises of unrealistic receipts. Do not lose to seize music of destroys compromised in the siege. Do not pause to vestibule concerned men-folks and then the stoppagehold authorities for any whole. Do not dispense stoppage any agent/broker dispenseer who is not registered stoppage Companionship of Interchangeoperative Funds in India (AMFI). Avoid herd mentality period buying / selling into interchangeoperative store designs.
Do not license out KYC details in your application forms. That will make the forms liable for rejection.Do not hurry into making sieges that do not tally your destroy prelude passion and siege goals. Investors should be guarded of concentrating their interchangeoperative store portfolio in one detail asset adjust and not diversifying acrossdifferent types of deemblem profiles. Dealing in Securities: Dealing in Securities Dos: Transact solely through Accumulation Exchanges. Dispense solely through SEBI registered intermediaries. Complete all the required fashionalities of opening an recital uprightly (Client registration, Client consonance fashions etc).
Ask for and emblem “Know Your Client Agreement”. Read and uprightly subordinateneathstand the destroys associated with investing in securities / derivatives before underprelude transactions.Assess the destroy – repay profile of the siege as well-behaved-behaved as the liquidity and safety aspects before making your investment decision. Ask all bearing questions and unobstructed your doubts stoppage your broker anteriorly transacting. Endow established on gauge rationalistic behind prelude into recital all publicly availoperative knowledge and on storeamentals. Give unobstructed and apparent 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 exsubstitute it is advisoperative to avoid off-employment transactions. Do not dispense stoppage unregistered intermediaries.Do not lapse rapine to promises of unrealistic receipts. Do not endow on the recital of report and rumors; fulfill anteriorly siege. Do not lose to seize music of destroys compromised in the siege. Do not be sinful by rumours circulating in the employment. Do not be influenced into buying into storeamentally ungauge companies (penny accumulations) established on abrupt spurts in trading volumes or prices or non legitimate favoroperative looking doctrines / stories.
Do not follow the herd or embody on momentum - it could diverge despite you. Do not be sinful by so denominated hot tips. Do not try to era the employment. Do not pause to vestibule the special authorities for redressal of your doubts / grievances.