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Economy

Securities and Exchange Board of India

Securities and Exchange Board of India (SEBI)

Regulator for the securities market in India.

Formed

12 April 1992

It was established by The Government of India on 12 April 1988.

SEBI got its statutory powers through the SEBI Act, 1992.

Controller of Capital Issues was the regulatory authority before SEBI came into existence; it derived authority from the Capital Issues (Control) Act, 1947.

Headquarters

Mumbai

Organization structure

1. The chairman(nominated by Union Government of India).

2. Two members(Officers from Union Finance Ministry).

3. One member from the Reserve Bank of India.

4. The remaining five members are nominated by Union Government of India, out of them at least three shall be whole-time members.

Functions

Functions:

  1. to protect the interests of investors in securities.
  1. to develop and also regulate the securities market.

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.

Powers

For the discharge of its functions efficiently, SEBI has been vested with the following powers:

 1. to approve bylaws of stock exchanges.sebi.

 2. to require the stock exchange to amend their bylaws.

 3. inspect the books of accounts and call for periodical returns from recognized stock exchanges.

 4. inspect the books of accounts of a financial intermediaries.

 5. compel certain companies to list their shares in one or more stock exchanges.

 6. registration of brokers.

     There are two types of brokers:

  1. circuit broker
  2. merchant broker