SECURITIES AND EXCHANGE

BOARD OF INDIA(SEBI)

Ashish sidddqui
 SEBI- GENESIS

SEBI is the regulator for the Securities Market in India.

In 1988 SEBI was established by the Government of India through an
executive resolution, and was subsequently upgraded as a fully
autonomous body (a statutory Board) in the year 1992 with the passing of
the Securities and Exchange Board of India Act (SEBI Act) on 30th January
1992.
The SEBI was established on April 12, 1992.
In place of Government Control, a statutory and autonomous regulatory
board with defined responsibilities, to cover both development &
regulation of the market, and independent powers have been set up.
Paradoxically this is a positive outcome of the Securities Scam of 1990-91.
 SEBI

Chaired by Ajay tyagi SEBI is headquartered in the popular

business district of BKC in Mumbai, and has Northern,
Eastern, Southern and Western regional offices in New Delhi,
Kolkata. Chennai, and Ahmadabad.
 SEBI- PREAMBLE

The Preamble of the SEBI describes the basic

functions of the Securities and Exchange Board of
India as
..to protect the interests of investors in
securities and to promote the development of, and
to regulate the securities market and for matters
connected therewith or incidental thereto
 SEBI- Basic objectives
To protect the interests of investors in
securities.
To promote the development of Securities
Market.
To regulate the securities market.
For matters connected therewith or incidental
thereto.
 SEBI- Major Contributions

Since its inception, SEBI has been working targeting the

securities and is attending to the fulfillment of its objectives
with commendable zeal and dexterity.
The improvements in the securities markets like capitalization
requirements, margining, establishment of clearing
corporations, Demat, etc. reduced the risk of credit and also
reduced the market risk.
SEBI has introduced the comprehensive regulatory measures,
prescribed registration norms, the eligibility criteria, the code
of obligations and the code of conduct for different
intermediaries like, bankers to issue, merchant bankers,
brokers and sub-brokers, registrars, portfolio managers,
credit rating agencies, underwriters and others.
 SEBI- Major Contributions
It has framed bye-laws, risk identification and risk
management systems for Clearing houses of stock exchanges,
surveillance system etc. which has made dealing in securities
both safe and transparent to the end investor.
Another significant event is the approval of trading in stock
indices (like S&P CNX Nifty & Sensex) in 2000.
A market Index is a convenient and effective product because
of the following reasons:
- It acts as a barometer for market behavior;
- It is used to benchmark portfolio performance;
- It is used in derivative instruments like index futures and
Index options
 SEBI- Contributions
Two broad approaches of SEBI is to integrate the securities
market at the national level, and also to diversify the trading
products, so that there is an increase in number of traders
including banks, financial institutions, insurance companies,
mutual funds, primary dealers etc. to transact through the
Exchanges.
In this context the introduction of derivatives trading through
Indian Stock Exchanges permitted by SEBI in 2000 is a real
landmark.
SEBI has enjoyed success as a regulator by pushing systemic
reforms aggressively and successively (e.g. the quick
movement towards making the markets electronic and
paperless rolling settlement on T+2 basis
 SEBI- Functions and Responsibilities
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.
 Powers and Functions of SEBI
Regulating the business in stock exchanges and any other
securities markets.
Registering and regulating the working of stock brokers, sub-
brokers, share transfer agents, bankers to an issue, trustees
of trust deeds, registrars to an issue, merchant bankers,
underwriters, portfolio managers, investment advisers and
such other intermediaries who may be associated with
securities markets in any manner.
Registering and regulating the working of the depositories,
custodians of securities, foreign institutional investors, credit
rating agencies and such other intermediaries as the Board
may, by notification, specify in this behalf.
 Powers and Functions of SEBI
Registering and regulating the working of venture capital
funds and including mutual funds.
Promoting and regulating self-regulatory organisations.
Prohibiting fraudulent and unfair trade practices relating to
securities markets.
Promoting investors' education and training of intermediaries
of securities markets.
Prohibiting insider trading in securities.
Regulating substantial acquisition of shares and take-over of
companies.
Calling for information from, undertaking inspection,
conducting inquiries and audits of the stock exchanges,
mutual funds, other persons associated with the securities
market intermediaries and self- regulatory organizations in
the securities market.
 Powers and Functions of SEBI
Calling for information and record from any bank or any other
authority or board or corporation established or constituted
by or under any Central, State or Provincial Act in respect of
any transaction in securities which is under investigation or
inquiry by the Board.]
Performing such functions and exercising such powers under
the provisions of the Act as may be delegated to it by the
Central Government from time to time.
Levying fees or other charges for carrying out the purposes of
this section.
Conducting research for the above purposes.
Calling from or furnishing to any such agencies, as may be
specified by the Board, such information as may be
considered necessary by it for the efficient discharge of its
functions.
 Powers and Functions of SEBI
The Board may take measures to undertake inspection of any
book, or register, or other document or record of any listed
public company or a public company which intends to get its
securities listed on any recognised stock exchange where the
Board has reasonable grounds to believe that such company
has been indulging in insider trading or fraudulent and unfair
trade practices relating to securities market.
While exercising the powers under the Act, the Board shall
have the same powers as are vested in a civil court under the
Code of Civil Procedure, 1908 (5 of 1908).
 Powers and Functions of SEBI
The Board may, take any of the following measures:
Suspend the trading of any security in a recognized stock
exchange.
Restrain persons from accessing the securities market and
prohibit any person associated with securities market to buy,
sell or deal in securities.
Suspend any office-bearer of any stock exchange or self-
regulatory organization from holding such position.
Impound and retain the proceeds or securities in respect of
any transaction which is under investigation.
Attach for a period not exceeding one month, one or more
bank account or accounts of any intermediary or any person
associated with the securities market in any manner involved
in violation of any of the provisions of this Act, or the rules or
the regulations made there under.
 Powers and Functions of SEBI
Direct any intermediary or any person associated with the
securities market in any manner not to dispose of or alienate
an asset forming part of any transaction which is under
investigation.
The Board may take any of the measures in respect of any
listed public company or a public company which intends to
get its securities listed on any recognized stock exchange
where the Board has reasonable grounds to believe that such
company has been indulging in insider trading or fraudulent
and unfair trade practices relating to securities market.
 SEBI- Conclusion

For the development of any economy, Capital Market, which

is one of the main organ to mobilize funds of huge order, shall
evolve all steps to develop the market, simultaneously
bringing in the credibility in the financial market, which is
watched world wide, through effective and speedy
implementable regulations, ultimately, protecting the
interest of the Investors and the Country.
 IRDA
IRDA - Insurance Regulatory Development and Authority
is the statutory, independent and apex body that governs
and supervise the Insurance Industry in India.

It was constituted by Parliament of India Act called

Insurance Regulatory and Development Authority of
India (IRDA of India) after the formal declaration of
Insurance Laws (Amendment) Ordinance 2014, by the
President of India Pranab Mukherjee on December
26,2014.
 ESTABLISHMENT
IRDA Act was passed upon the recommendations of
Malhotra Committee report (7 Jan,1994), headed by
Mr R.N. Malhotra (Retired Governor, RBI)
Main Recommendations - Entrance of Private
Sector Companies and Foreign promoters & An
independent regulatory authority for Insurance Sector in
India
In April,2000, it was set up as statutory body, with its
headquarters at New Delhi.
The headquarters of the agency were shifted to
Hyderabad, Telangana in 2001.
 OBJECTIVES
To promote the interest and rights of policy
holders.
To promote and ensure the growth of Insurance
Industry.
To ensure speedy settlement of genuine claims
and to prevent frauds and malpractices
To bring transparency and orderly conduct of in
financial markets dealing with insurance.
 ORGANIZATIONAL SET UP
IRDA is a ten member body consists of :
One Chairman (For 5 Years & Maximum Age -
60 years )
Five whole-time Members (For 5 Years and
Maximum Age- 62 years)
Four part-time Members (Not more than 5 years)
The chairman and members of IRDAI are
appointed by Government of India.

The present Chairman of IRDAI is Mr T.S

Vijayan.
 FUNCTIONS OF IRDA
Section 14 of IRDA Act,1999 lays down the duties and
functions of IRDA:
It issues the registration certificates to insurance
companies and regulates them.
It protects the interest of policy holders.
It provides license to insurance intermediaries such as
agents and brokers after specifying the required
qualifications and set norms/code of conduct for them.
It promotes and regulates the professional organisations
related with insurance business to promote efficiency in
insurance sector.
 FUNCTIONS OF IRDA
It regulates and supervise the premium rates
and terms of insurance covers.
It specifies the conditions and manners,
according to which the insurance companies
and other intermediaries have to make their
financial reports.
It regulates the investment of policyholder's
funds by insurance companies.
It also ensures the maintenance of solvency
margin (company's ability to pay out claims) by
insurance companies.
 RECENT NEWS
FDI limit in Insurance Sector has been increased to
49% from 26%, approved by The Union Cabinet. The
proposal was made by Finance Minister Arun Jaitley.
IRDAI has celebrated 19th April,2015 as Insurance
Awareness Day at Hyderabad. (came into existence in
2000)
IRDAI has imposed a fine of Rs.10 lakh on TATA AIA
Life Insurance for violation of excess payment to
corporate agents. TATA AIA Life Insurance is joint
venture company formed by Tata Sons Ltd. and AIA
Group Ltd. CEO and MD of the company is Mr Naveen
Tahilyani.
 RECENT NEWS
IRDAI has changed the norms related to cancellation
and change of name of nominee. The insurer will
charge fee for any such modification. The fee is up to
Rs. 50 for policies obtained online and up to Rs.100
for others.
IRDAI has imposed a fine of Rs.20 lakh on APPOLO
MUNICH HEALTH INSURANCE COMPANY for selling
its policies through non-authorised insurance selling
website makemytrip.com. The CEO of APPOLO
MUNICH HEALTH INSURANCE COMPANY is Antony
Jacob and the Chairman and CEO of makemytrip.com is
Deep Kalra.