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Securities and exchange board of India (SEBI)
The Securities and exchange board of India (SEBI) is considered the regulatory institution. The securities and exchange board of India is the regulatory authority for securities along with commodity markets within the country of India. The securities and exchange board of India operates under the ministry of finance, the government of India. The establishment of the securities and exchange board of India took place on 12th April 1998. The securities and exchange of India were provided statutory rights on 30th January 1992 with the help of the SEBI Act, 1992.
Historical background of the Securities and exchange board of India (SEBI)
The establishment of the securities and exchange board of India took place in 1998 in the form of a non-statutory institution so that it could supervise the securities market. On 30th January 1992, the securities and exchange board of India became an autonomous institution and was given statutory rights with the help of the SEBI Act 1992. This step was taken by the Indian Parliament.
The headquarters of SEBI is located in Mumbai. SEBI has its regional offices situated in New Delhi, Chennai, Ahmedabad, and Kolkata. In the financial year 2013 – 2014, SEBI opened its offices in the cities of Bangalore, Jaipur, Guwahati, Patna, Kochi, Bhubaneswar as well as Chandigarh.
The SEBI consists of the following members :
1. The Union Government of India nominates the Chairman of SEBI.
2. Two officers belong to the Union finance ministry.
3. One member belongs to the Reserve Bank of India.
4. The Union government of India nominates the remaining five members.
Functions and duties
The fundamental functions of SEBI are listed in the preamble of the securities and exchange board of India. The basic functions of the SEBI involve safeguarding the interest of investors in aspects of securities, promoting growth, and managing the securities market.
There are three groups to which SEBI needs to be responsive. These groups are:
1. Investors
2. Securities issuers
3. Market mediators
SEBI performs the duty of drafting rules in its legislative ability, organizing investigation, and passing orders and rules in its judicial ability.
Powers are given to the securities and exchange board of India (SEBI)
SEBI has been allotted the following powers :
1. Power to approve rules and regulations of the securities exchange
2. Power to check the books of accounts of financial mediators
3. Power to insist specific companies mention their shares in one or more than one securities exchange
4. Power to do registration of brokers as well as sub-brokers
5. Power to alter the rules and regulations of SEBI
Major achievements of the securities and exchange board of India
SEBI has witnessed success by forcing systematic changes regularly and aggressively. SEBI created a quick movement in making the markets electronic as well as paperless by establishing the T+5 rolling cycle in July 2001. The regulations under SEBI law have been established by SEBI. Also, SEBI has taken fast and effective steps in resolving the popular case Satyam. SEBI keeps introducing new transformations for better financial services. SEBI has introduced derivatives trading in securities.
Along with this, SEBI has permitted internet trading under an order routing system with the help of registered stock brokers.
SEBI has played a major role in modernizing the whole operations of the stock exchange within India. SEBI supervises the operation of multiple institutions. SEBI is vital in improvising the functioning of primary as well as secondary capital markets within India.
Conclusion
The Securities and exchange board of India (SEBI) is considered a regulatory institution. The securities and exchange board of India is the regulatory authority for securities along with commodity markets within the country of India. The establishment of the securities and exchange board of India took place in 1998 in the form of a non-statutory institution so that it could supervise the securities market.
The headquarters of SEBI is located in Mumbai. The fundamental functions of SEBI are listed in the preamble of the securities and exchange board of India. SEBI performs the duty of drafting rules in its legislative ability, organizing investigation, and passing orders and rules in its judicial ability. SEBI has witnessed success by forcing systematic changes regularly and aggressively. SEBI created a quick movement in making the markets electronic as well as paperless by establishing a T+5 rolling cycle in July 2001. The regulations under SEBI law have been established by SEBI.SEBI has witnessed success by forcing systematic changes regularly and aggressively. SEBI created a quick movement in making the markets electronic as well as paperless by establishing the T+5 rolling cycle in July 2001. The regulations under SEBI law have been established by SEBI.
