The SEBI is the board for securities and exchange in India. It was first established in 1988 as a non-statutory body to regulate the securities market. However, it became an autonomous body in the year 1992 with the passing of the SEBI Act 1992 by the parliament of India. It has its headquarters in Mumbai and regional offices in Kolkata, New Delhi, Chennai and Ahmedabad. In addition, local offices are set up in different states of India to monitor the commodity market and take necessary actions. The regulation of the Indian financial market is made with the coordination of 20 departments of the regulatory body.
The Union Government of India appoints the chairman of the body along with five other members, out of which three are supposed to be whole-time members. In addition, two members are selected from the Union Finance Ministry and one from the Reserve Bank of India.
To appear for the SEBI Assistant Manager Grade post, there are a few SEBI recruitment criteria one must follow. Any person appearing must be a citizen of India or Nepal/Bhutan/Bangladesh with a valid certificate from the government of India.
As per the SEBI full form, its primary role is to regulate and monitor the security issues and investors and protect their interests. The body, by drafting specific regulations, exercises its legislative powers. Furthermore, it can initiate investigations with the help of its executive powers and pass orders to utilise its judicial capacity. In addition, the regulatory body has certain powers to ensure the smooth functioning of the financial market.
There are various committees that help implement and supervise the regulations and activities. Mutual Fund Advisory Committee, Technical Advisory Committee, Corporate Bonds and Securitisation Advisory Committees are some of the popular committees.
SEBI has been instrumental in taking effective steps, and in order to deal with global meltdown, it has liberalised takeover code. It has also increased the retail investors limit to a whopping 200,000 from 100,000.
Since 1992, various regulations have been passed and are continuing. Some of the latest SEBI regulations deal with the delisting of equity shares. Regulations spread from portfolio managers, foreign portfolio investors, vault managers to the appointment of administrators for the procedure of refunding to the investors. Various settlement proceedings, securities contracts, infrastructure investment trusts, real estate investment trusts, and KYC issues fall under the regulatory actions of the body. The latest regulation ( 2021 ) deals with sorting out the central database of market participants.
Due to a hike in the illiquid nature of trade on many securities exchanges, a few guidelines were passed in 2012 for the latter to either meet the criteria or take an exit. The process of derecognition of the securities exchange is as follows.
SEBI has witnessed success by forcing systematic reforms and must be appreciated for implementing various settlement cycles and making markets electronic and paperless. They are actively working to establish regulations required under the law. SEBI has kept the goal clear and invested in protecting issuers of securities, investors, and market intermediaries. It has issued guidelines complementing International standards.
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