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SEBI AND ITS ROLE AS REGULATOR. CA PRATAP VISHNOI. OUTLINE. CONSTITUTION AND ORGANISATION OBJECTIVES FUNCTIONS PERFORMANCE. CONSTITUTION AND REGULATION.
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SEBI AND ITS ROLE AS REGULATOR CA PRATAP VISHNOI
OUTLINE • CONSTITUTION AND ORGANISATION • OBJECTIVES • FUNCTIONS • PERFORMANCE
CONSTITUTION AND REGULATION THE SEBI WAS ESTABLISHED ON APRIL 12,1988 THROUGH AN ADMINISTRATIVE ORDER, BUT IT BECAME A STATUTORY AND REALLY POWERFUL ORGANIZATION ONLY SINCE 1992. SEBI is a body of six members comprising the chairman, two members from amongst the officials of the ministers of central government dealing with Finance and Law. Two members who are professional and have experience or special knowledge relating to securities market. One member from RBI.
OBJECTIVES: • To protect the interest of investors in securities. • To promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto. • To protects the Rights and interests of investors, particularly individual investors. • To prevents trading malpractices and aims at achieving a balance between self-regulation by securities industry and its statutory regulation. • To facilitating an efficient mobilization and allocation of resources through the securities markets, stimulating competition, and encouraging innovations.
FUNCTIONS: • TO REGULATE: • Depositories and Participants. • Custodians. • Debenture trustees, and Trust deeds. • FIIs. • Insider trading. • Merchant bankers • Mutual Funds. • Port folio managers and investment advisors. • Registrars to issue and share transfer agents. • Venture capital funds.
PERFORMANCE: • PPRIMARY SECURITIES MARKET • SECONDARY MARKET AND INTERMEDIARRIES • MUTUAL FUNDS • MISCELLANEOUS • INVESTOR PROTECTION MEASURES
Functions of SEBI in Respect of Matters specified in Section 11 of the SEBI Act, 1992: • Violation of advertisement code/Guidelines . • Delay in submission of periodical reports. • Inadvertent short-selling. • Failure to install systems and compliance mechanism in place. • Discrepancies in calculation of annualized returns in draft offer document.