What is SEBI? SEBI is the director for the bond Communicate in India. In 1988 the Securities and Exvary Board of India (SEBI) was periodical by the Government of India through an executive resolution.
Securities and Exvary Board of India (SEBI) was earliest interruptedal in the year 1988 as a non-statutory substance for masterful the securities communicate and was subsequently upgraded as a fully autonomous body on April 12, 1992 the Securities and Exvary Board Of India was mouldd. It was mouldd in correspondence stoppage the stipulations of the Securities and Exvary Board Of India Act 1992.Chaired by C B Bhave, SEBI is headquartered in the favorite matter boundary 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 Exvary Board of India describes the basic exercises of the Securities and Exvary Board of India as “….. to secure the interests of endueors in securities and to prefer the outenlargement of, and to organize the securities communicate and for matters united therestoppage or occasional thereto” Securities and Exvary Board of India (SEBI), Functions of SEBISEBI has to be obedient to the needs of three groups, which mould the communicate: ? the endrs of securities ? the endueors ? the communicate intermediaries. SEBI has three exercises rolled into one substance quasi-legislative, quasi-forensic and quasi-executive.
It drafts regulations in its legislative cleverness, it conducts examination and enforcement exercise in its adherent exercise and it passes rulings and nod in its forensic cleverness. Though this moulds it very strong, there is an entreats process to fashion representationability.There is a Securities Appellate Bar which is a hree-member bar and is immediately headed by a antecedent Chief Justice of a High flatter - Mr. Justice NK Sodhi. A second entreat lies straightway to the Supreme Court. SEBI has enjoyed luck as a director by meddling classificationic reforms aggressively and luckively (e. g.
the erratic vary-of-locate towards making the communicates electronic and paperless rolling dregs on T+2 recital). SEBI has been erratic in contrast up the regulations as required subordinate law. SEBI has besides been instrumental in bestowation erratic and operative steps in gentle of the global meltdown and the Satyam fiasco. [extract needed] It had[when? increased the degree and bulk of disclosures to be made by Indian corporate preferrs. Past recently, in gentle of the global meltdown,it liberalised the siegeaggravate principle to adapt bombardments by removing directory strictures. In one such provoke, SEBI has increased the collision boundary for hawk endueors to Rs 2 lakh, from Rs 1 lakh at bestow.  The Board is imperative for the securing the interests of investors in securities and to adapt the enlargement of and to warner the securitiescommunicate in an divert mould.
To warner and control the work of hoard exvary and derivative communicates.Listing and warnering the exerciseing of hoard brokers, sub brokers, portion-out convey agents, bankers to an end, trustees of trustdeeds, registrars to an end, bargainer bankers, subordinatewriters, portfolio directors,bombardment advisers and others associated stoppage securities communicates by any resources. Monitoring and Controlling the exerciseing of hazard high capitals and alternatefunds. Forbid insincerity and insincerity exvary practices in the bond communicates andforbid insider trading in the bond communicate. Undersiege interrupted audits of hoard exchanges, alternate capitals, beings and wilful directory organizations associated stoppage the bond communicate.Functions: 1. REGULATION OF STOCK EXCHANGES AND SUBSIDIARIES One of the key exercises of the Board is to manage and warner the activities of the exchanges, defecation houses and the dregs classification, confirm communicate infraerection and fix that divert waste administration classifications are in locate.
I. Error of Hoard Exchanges: On-site supervision through error of hoard exchanges is considered an operative directory implement. Subordinate the device of waste-domiciled supervision which has been adopted from the year subordinate retrospect, hoard exchanges having a weighty divergeaggravate were enthralled up for onsite error.These were The Bombay Hoard Exvary (BSE), Calcutta Hoard Exvary (CSE), National Hoard Exvary (NSE), Inter United Hoard Exvary (ISE), Ludhiana Hoard Exvary (LSE), Hyderabad Hoard Exvary (HSE) and Ahmedabad Hoard Exvary (ASE). II. Error of Subsidiaries of Hoard Exchanges III. Restructuring of Administration of Subsidiaries: The error of the subsidiaries of hoard exchanges revealed deficiencies in their exerciseing and waste administration classifications The administration erection of the subsidiaries needed to subordinatego vary in manage to empower them to be operative to afford a true and ransparent communicate and operatively liberate their responsibilities towards endueor secureion.
IV. Illegal Trading in Securities It had follow to the regard of the SEBI that true beings were attractive in trading in securities stoppageout the purview of the hoard exchanges (‘illegal trading in securities’). 2. REGISTRATION AND REGULATION OF THE WORKING OF INTERMEDIARIES In manage to mediate between endrs and endueors, directors know-again different classes of intermediaries in the high communicate. Regulation through intermediaries has been fix, may-be past operative in true spheres of disposition. SEBI, aggravate the continuance, ecognized numerous types of high communicate intermediaries in India and operations during the year is retrospected in the subjoined sections. I.
Primary Communicate Intermediaries such as bargainer bankers, subordinatewriters, debenture trustees, bankers to an end, registrars to an end and portion-out convey agents and portfolio director are organized by SEBI II. Secondary Communicate Brokers are one of the most essential links between the endueors and the communicate. Their friendship stoppage the hoard exchanges and endueors dates end to as existing as nineteenth era III. Registration of FIIs During the year 49 FIIs were supposing unfaded egistration inasmuch-as 34 FIIs were supposing enjoyment of registration. 163 sub-accounts got registered and the registration of 71 subaccounts were unfaded. 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 Exvary – 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 erection Chandrasekhar Bhaskar Bhave is the sixth conductor of the Securities Communicate Regulator. Prior to bestowation impute as Conductor SEBI, he had been the conductor of NSDL (National Securities Depository Limited) ushering in paperless securities.
Prior to his stop at NSDL, he had served SEBI as a Senior Adherent Director. He is a antecedent Indian Administrative Service officer of the 1975 batch. The Board comprises Name |Designation |As per | |C B Bown |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 Forensic Academy, Bhopal |Member | |MS Sahoo |Whole Season Member, SEBI |Member | |Dr KM Abraham |Whole Season Member, SEBI |Member | |Mohandas Pai |Director, Infosys |Member | |Prashant Saran |Whole Season Member, SEBI |Member | Steps enthralled by SEBI to mould endueors apprised of their hues : Brokers and Sub-brokers: Brokers and Sub-brokers Don'ts: Do not bargain stoppage unregistered intermediaries. Do not pay past than vulgar brokerage to the intermediaries. Do not subordinatetakedeals for othersDo not failure to set out in congeniality, nod for better esteem loving aggravate phone. Do not confirm unmitigated prproffer instructions slip occasion consultation bond pay-in obligations. Do not confirm unsigned/duplicate mould voicelessness/confirmationmemo.
Do not confirm mould note/confirmation memo signed by anyunauthorised special. Do not stoppage payment/deliveries of securities to broker/ sub-broker. Do not get carried afar by luring advertisements, if any. Do not be led by communicate rumours or get into shady transactions. Investing in Alternate Funds: Investing in Mutual Funds Dos: Read the proffer document carefully antecedently endueing. Voicelessness that bombardments in Alternate Funds may be wastey.Mention your bank representation enumerate in the collision mould.
Endue in a purpose depending upon your bombardment external and waste tendency. Voicelessness that Net Asset Esteem of a purpose is question to vary depending upon communicate stipulations. Insist for a portraiture of the prproffer document/key counsel memorandum antecedently endueing. Voicelessness that past performance of a scheme is not indicative of future performance. Past work of a purpose may or may not be sustained in advenient. Keep trail of the Net Asset Esteem of a purpose, where you own endueed, on a normal recital. Find out about the investment profile provided in portfolio disclosures which isavailoperative on half yexisting recital.
Investing in Mutual Funds Don'ts:Do not invest in a scheme just because somesubstance is prsubsidy you a message 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 income. Do not learn to siege voicelessness of wastes implicated in the bombardment. Do not pause to approximation concerned beings and then the divert authorities for any drift. Do not bargain stoppage any agent/broker bargainer who is not registered stoppage Friendship of Alternate Funds in India (AMFI). Avoid crew mentality occasion buying / selling into alternate capital purposes.
Do not concession out KYC details in your application forms. That will make the forms liable for rejection.Do not drive into making bombardments that do not equality your waste bestowation tendency and bombardment goals. Investors should be guarded of concentrating their alternate capital portfolio in one detail asset class and not diversifying acrossdifferent types of purpose profiles. Dealing in Securities: Dealing in Securities Dos: Transact barely through Hoard Exchanges. Bargain barely through SEBI registered intermediaries. Complete all the required mouldalities of opening an representation rightly (Client registration, Client conformity moulds etc).
Ask for and emblem “Know Your Client Agreement”. Read and rightly subordinatestand the wastes associated with investing in securities / derivatives before underpresentation transactions.Assess the waste – render mark of the bombardment as well-behaved-behaved as the liquidity and safety aspects before making your investment decision. Ask all appropriate questions and open your doubts stoppage your broker antecedently transacting. Endue domiciled on probe reasoning following bestowation into representation all publicly availoperative counsel and on capitalamentals. Give open and unambiguous instructions to your broker / sub-broker / depository participant. Be wakeful in your transactions.
Dealing in Securities: Dealing in Securities Don'ts: Loving the benefits of trading on hoard exvary it is advisoperative to avoid off-communicate transactions. Do not bargain stoppage unregistered intermediaries.Do not drop loot to promises of unrealistic income. Do not endue on the recital of rumor and rumors; establish antecedently bombardment. Do not learn to siege voicelessness of wastes implicated in the bombardment. Do not be sinful by rumours circulating in the communicate. Do not be influenced into buying into capitalamentally unprobe companies (penny hoards) domiciled on hasty spurts in trading volumes or prices or non original favoroperative looking declaration / stories.
Do not follow the crew or reproduce-exhibit on momentum - it could diverge resisting you. Do not be sinful by so denominated hot tips. Do not try to season the communicate. Do not pause to approximation the appropriate authorities for redressal of your doubts / grievances.