SEBI (Securities and Exchange Board of India)

PRESENTED BY

 Mangesh Sawarkar
 Jivesh Nage
 Nitish Gupta
 Tanishq Prasanna

From B.tech (c.s.e) 4th SEM

Roles Of SEBI

Objectives Of SEBI

Functions Of SEBI

Power Of SEBI

Conclusion
 INTRODUCTION OF
SEBI

SEBI (Securities and Exchange Board of India) was set up in 1988 for the regulation of

the functions of securities market. It promotes orderly and healthy development in the

stock market. However, initially, SEBI did not have complete control over the stock

market transactions. It was just left as a watchdog for observing the activities, but could

not regulate and control them. As a result, in May 1992, SEBI was granted legal status

and is now a body corporate that has a separate legal existence and perpetual succession.
 ROLES OF
SEBI
The main role of the formation of SEBI was to keep a check on malpractices and protect
the interest of investors. Simply put, SEBI was set up to fulfil the needs of three groups,
which are:
•Issuers. SEBI provides a marketplace for issuers in which they can raise finance easily
and fairly.
•Investors. SEBI provides protection for investors and supplies accurate and correct
information.
•Intermediaries. SEBI provides a competitive professional market for intermediaries.
 OBJECTIVES OF
SEBI
The main objective of SEBI is protection of the interest of investors, promotion of the
development of stock exchange, and regulation the activities of stock market. The
objectives of SEBI are as follows:
•Regulation of the activities of stock market.
•Protection of the rights of investors and ensuring safety of their investment.
•Prevention of fraudulent and malpractices by having a balance between self-regulation of
business and its statutory regulations.
•Regulation and development of a code of conduct for the intermediaries like underwriters,
brokers, etc.
 FUNCTIONS OF
SEBI
1. Protective Functions :-
The functions performed by SEBI to protect the interest of investors and provide safety of investment are protective
functions. The functions performed by SEBI as protective functions are as follows:
i) Check a Price Rigging :-
Manipulation of price of securities to inflate or depress the market price of securities is known as Price Rigging. SEBI
through protective functions prohibits these kinds of practices as it can cheat and defraud the investors.
ii) SEBI prohibits fraudulent and unfair trade practices :-
SEBI does not allow the companies to make any statement that can mislead the people and induce the sale or purchase of
securities by any other person.
iii) Educate Investors :-
SEBI undertakes various steps to educate the investors so that they can easily evaluate the securities of different
companies and select the most profitable security.
2. Developmental Functions :-
SEBI performs developmental functions to promote and develop the activities in stock
exchange and to increase the business in stock exchange. The functions performed by SEBI
under developmental functions are as follows:
i) It promotes the training of intermediaries of the securities market.
ii) It tries to promote the activities of the stock exchange. To do so, it adopts a flexible and
adaptable approach in the following ways:
•SEBI has given permission for internet trading through registered stock brokers.
•In order to reduce the cost of issue, SEBI has also made underwriting optional.
•Lastly, it has permitted initial public offer of primary market through stock exchange.
3. Regulatory Functions :-
SEBI performs regulatory functions to regulate the business in stock exchange. The functions performed by
SEBI under regulatory functions are as follows:
•To regulate the intermediaries like underwriters, brokers, etc., SEBI has framed a set of rules and
regulations and a code of conduct.
•It also conducts inquiries and audits of stock exchanges.
•SEBI registers and regulates the working of mutual funds, etc.
•SEBI has brought the intermediaries under the regulatory purview and has made private placement more
restrictive.
•SEBI regulates the takeover of companies.
•Ultimately, it registers and regulates the working of stock brokers, share transfer agents, sub-brokers,
merchant brokers, trustees, and everyone who is associated with the stock exchange in any manner.
 POWER OF SEBI
1. Regulatory Oversight : SEBI, the Securities and Exchange Board of India, oversees the securities
market to ensure fair practices, transparency, and investor protection.

2. Rule-making Authority : SEBI has the power to formulate rules and regulations governing various
participants in the securities market, including stock exchanges, brokers, and listed companies.

3. Enforcement : SEBI enforces regulations through inspections, investigations, and penalties to maintain
market integrity and prevent malpractices like insider trading and market manipulation.

4. Educational Initiatives : SEBI undertakes educational initiatives to enhance investor awareness and
knowledge about the securities market, promoting informed investment decisions.

5. Market Development : SEBI plays a crucial role in fostering the development and growth of the
securities market by introducing new products, improving infrastructure, and adopting global best practices.
 CONCLUSION

SEBI, or the Securities and Exchange Board of India, is a regulatory body overseeing
India's securities market. It ensures fairness, transparency, and investor protection. Its
objectives include safeguarding investors, promoting development, and regulating market
participants. SEBI's functions encompass rule-making, enforcement, education, and
market development. It has the power to formulate regulations, conduct investigations,
and impose penalties. In conclusion, SEBI's role is pivotal in maintaining the integrity of
India's securities market, fostering growth, and ensuring that investors are adequately
protected while participating in the market.
THANK YOU