Securities and Exchange Board of India is an autonomous organization that works under overall administrative supervision of the Union Finance Ministry and is accountable to the Parliament. It is an important topic for the IAS Exam. This article will talk about the functions and structural organisation of SEBI. Candidates can also download the notes PDF at the end of this article.
TheNCERT Notes for UPSCpage is an important asset that will help you prepare for the Prelims and the Mains stage of the exam!!In addition, the following links given below will also help in strengthening the candidates’ exam preparation:
- Download Indian Economy Notes for UPSC Exam
- Current Affairs
- Download UPSC Notes PDF
- Learn from IAS Toppers
SEBI Latest News
In March 2023, SEBI introduced new norms for timely disclosure of material events, stricter timeline, removal of permanent board seats, and improved corporate governance at listed entities. Know more about these changes in the link.
Overview of the SEBI
The Securities and Exchange Board of India owned by the Government of India was established on 12th April 1992 under the Securities and Exchange Board of India Act, 1992 toprotect the interests of the investors in securities along with promoting and regulating the securities market.Headquartered in Mumbai, the Securities and Exchange Board of India (SEBI) has four regional offices located in Ahmedabad, Chennai, Delhi and Kolkata. SEBI was initially formed in the year 1988 as a non-statutory body for the regulation of the securities market and later acquired statutory status on 30th January 1992. To know more about SEBI, refer to the table given below:
SEBI
| SEBI full form | Securities And Exchange Board of India |
| Year of formation | 1988 |
| Headquarters | Mumbai, Maharashtra |
| SEBI Chairman | Ms. Madhabi Puri Buch |
| Sector | Securities Market |
Formation of SEBI
The Securities and Exchange Board of India (SEBI) was first established as a non-statutory body in 1988 for the regulation of the securities market. It acquired the statutory powers on 30th January 1992 in accordance with the SEBI Act 1992. SEBI became an autonomous body on 12 April 1992 and was soon constituted as the regulator of capital markets under the Government of India. The headquarters of the Security and Exchange Board of India is located in Mumbai, Maharashtra and has four regional offices in New Delhi, Kolkata, Chennai and Ahmedabad.
During the Financial Year 2013-2014, SEBI opened several local offices in the cities namely-Jaipur, Bangalore, Guwahati, Bhubaneshwar,Patna,KochiandChandigarh.
Structural Organisation of SEBI
SEBI is an autonomous organization that works under the administration of the Union Finance Ministry. The Security and Exchange Board of India (SEBI) is managed by the following members:
- The chairman was nominated by the Union Government of India.
- Two members, i.e., Officers from the Union Finance Ministry.
- One member from the Reserve Bank of India.
- The remaining five members are nominated by the Union Government of India. Three of the five members should be full-time members.
Ms Madhabi Puri Buch is the current SEBI Chairman who was appointed to take charge of the chairman’s office on 02 March 2022, by replacing the former chairman Ajay Tyagi.
To know about the Major Stock Exchanges in India, visit the linked article.
SEBI Functions & Powers
The scope of SEBI’s activities is rather wide. It is empowered to frame rules, regulations, guidelines and direction etc. in respect of both primary and secondary securities markets. Intermediaries and certain financial institutions operating in securities markets are also subjected to SEBI’s directions and norms.SEBI has the power to regulate the following branches:
- Depositories, participants and custodians
- Debenture trustees and trust deeds
- Insider trading, FII’s merchant bankers and mutual funds
- Portfolio managers, investment advisors, registrars to capital issues and share transfer agents
- Stockbroker, sub-brokers, underwriters, bankers to the issues and venture capital funds and
- Substantial acquisition of shares and takeovers.
It also issues guidelines for disclosure of information and operational transparency for investor protection,pricing of issues, bonus and preferential issues and other financial instruments.
According to the Preamble of SEBI, one of the major functions of the Security and Exchange Board of India is to protect the interests of investors in securities along with promoting the development and regulation of the securities market.
SEBI is also responsible for the needs of the following three groups which constitute the securities market:
- Issuers of securities
- Investors
- Market intermediaries
The economy of India covers an important part of the UPSC Syllabus.
Candidates preparing for UPSC 2021 should also keep a track of the latest current affairsto know about any new developments in the country.
Securities and Exchange Board of India(SEBI):- Download PDF Here
For more UPSC-relatedpreparation materials and articles, visit the links given in the table below:
Related Links
| UPSC Books | UPSC Monthly Current Affairs Magazine | Topic-Wise GS 3 Questions from UPSC Mains |
| Anu Kumari | GK Questions on Current Affairs | Famous Indian Mathematicians |
| Article 368 of the Indian Constitution | Jhansi Rani | Important Acts in India |
FAQs
It is a statutory regulatory body that was established by the Government of India in 1992 for protecting the interests of investors investing in securities along with regulating the securities market. SEBI also regulates how the stock market and mutual funds function.
What is the function of SEBI in the stock exchange? ›
A stock exchange or securities exchange is an organized financial market where traders trade in securities. In these exchanges, the issue and redemption of securities are also performed. Stock exchanges function as 'continuous auction' markets where traders consummate transactions through electronic trading platforms.
Which of the following is a function of the Securities and Exchange Board of India? ›
The Securities and Exchange Board of India (SEBI) is a regulatory body that protects the interests of those who invest in the securities market. It also regulates the functioning of the stock markets and mutual funds in the country.
How to check if someone is SEBI registered? ›
Note that every stockbroker must prominently display its SEBI registered ID on its the official website. You can also check for the broker's National Stock Exchange (NSE) or Bombay Stock Exchange (BSE) registered ID. If you find them, it means the broker is registered.
What is the role of SEBI in the primary market? ›
SEBI regulates various intermediaries in the primary and secondary markets through its Regulations for these intermediaries. These Regulations allow SEBI to inspect the functioning of these intermediaries and to collect to fees from them.
What are the powers of SEBI? ›
Market Regulation: SEBI regulates the activities of stock exchanges, market intermediaries, and issuers. It sets guidelines for market operations, listing requirements, and investor protection measures. Enforcement: SEBI has the power to investigate, issue orders, and impose penalties.
Does SEBI Tag make one's money safe? ›
The investors should make an informed decision purely by themselves based on the contents disclosed in the offer documents. SEBI does not associate itself with any issue/issuer and should in no way be construed as a guarantee for the funds that the investor proposes to invest through the issue.
What are the functions of SEBI in India? ›
SEBI, a statutory regulatory body in India, regulates capital markets, protects investors, and enforces rules. It plays a vital role in managing companies issuing shares. SEBI has specific powers and functions, including quasi-judicial, executive, and legislative.
What are the new rules of SEBI? ›
SEBI has mandated market infrastructure institutions or MIIs to eliminate slab-wise transaction charges, introducing a uniform fee structure effective October 1, 2024. This move is expected to enhance transparency and reduce costs for investors while significantly impacting the revenue models of broking firms.
What is the controversy of SEBI? ›
The political party had alleged that Buch held a 99 per cent stake in a company that offered consultancy services to the Mahindra and Mahindra Group. The party also claimed that her husband earned Rs 4.78 crore from the conglomerate while she was handling cases involving the same group.
The Securities and Exchange Board of India (SEBI) has introduced a new framework to simplify bonus share trading. Starting October 1, 2024, bonus shares will be available for T+2 trading, reducing the time from the record date for credit and trading.
Who is an Authorised person under SEBI? ›
Authorised persons, usually referred to as APs, are chosen by trading members or stockbrokers who are registered with SEBI and are permitted to do a number of tasks, such as: Order placement: APs can place orders with the stockbroker or trading member on behalf of clients.
How do I get approval from SEBI? ›
Arrange the NOC from SEBI: You need to fill the application form in the given format. Submit all the required papers along with the application form. Understand SEBI regulations: Go through the complete list of regulations formulated by SEBI that you need to follow to carry on with your regular business activities.
What are the steps taken by SEBI for investor protection? ›
OTHER MEASURES:- SEBI
has taken various measures such as screen based trading system, dematerialization of securities, T+2 rolling settlement and framed various regulations to regulate intermediaries issue and trading of securities, corporate restructuring etc to protect the interest of investor in securities.
Who regulates the primary market in India? ›
SEBI: The market regulator in the Indian capital market is the Securities and Exchange Board of India (SEBI).
What are the SEBI guidelines for issue of shares? ›
SEBI Guidelines for issue of fresh share capital
- All applications should be submitted to SEBI in the. ...
- Applications should be accompanied by true copies. ...
- Cost of the project should be furnished with scheme. ...
- Company should have the shares issued to the public. ...
- Where the issue of equity share capital involves offer.
SEBI plays a crucial role in the Indian financial system by regulating the securities market, ensuring transparency, and protecting investors' interests. It also regulates the functioning of stockbrokers, sub-brokers, portfolio managers, and other intermediaries in the securities market.
What is the role of SEBI and stock exchange investor protection? ›
Investor Protection: SEBI's primary objective is to safeguard the rights and interests of stock market participants. To accomplish its objectives, SEBI points these market participants or players in the right direction and protects their financial investments in the market.
What is the meaning of SEBI in the stock market concern? ›
Securities and Exchange Board of India. SEBI has launched online 'Investor Certification Examination' in collaboration with NISM.
What is the role of SEBI in mutual funds? ›
As far as mutual funds are concerned, SEBI formulates policies and regulates the mutual funds to protect the interest of the investors. SEBI notified regulations for the mutual funds in 1993.
