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Securities and Exchange Board of India – Powers and Functions

The Securities and Exchange Board of India (SEBI) was enacted on April 12, 1992 in accordance
with the provisions of the Securities and Exchange Board of India Act, 1992. The SEBI is the regulator for the securities market in India.
The preamble of SEBI Act reads as, “An Act to provide for the establishment of a Board to protect the interests of investors in securities and to promote the development of, and to regulate, the securities market and for matters connected therewith or incidental thereto

Powers and Functions of the SEBI - As per section 11 of the SEBI Act, following are the powers and functions of the Board:-
         i.            regulating the business in stock exchanges and any other securities markets;
       ii.            registering and regulating the working of stock brokers, sub-brokers, share transfer agents, bankers to an issue, trustees of trust deeds, registrars to an issue, merchant bankers, underwriters, portfolio managers, investment advisers and such other intermediaries who may be associated with securities markets in any manner;

      iii.            registering and regulating the working of the depositories, participants, custodians of securities, foreign institutional investors, credit rating agencies and such other intermediaries as the Board may, by notification, specify in this behalf;
     iv.            registering and regulating the working of venture capital funds and collective investment schemes, including mutual funds;

       v.            promoting and regulating self-regulatory organisations;
     vi.            prohibiting fraudulent and unfair trade practices relating to securities markets;
    vii.            promoting investors’ education and training of intermediaries of securities markets;
  viii.            prohibiting insider trading in securities;

     ix.            regulating substantial acquisition of shares and takeover of companies;
       x.            calling for information from, undertaking inspection, conducting inquiries and audits of the stock exchanges, mutual funds, other persons associated with the securities market, intermediaries and self-regulatory organisations in the securities market;

     xi.            calling for information and records from any person including any bank or any other authority or board or corporation established or constituted by or under any Central or State Act which, in the opinion of the Board, shall be relevant to any investigation or inquiry by the Board in respect of any transaction in securities;

    xii.            calling for information from, or furnishing information to, other authorities, whether in India or outside India, having functions similar to those of the Board, in the matters relating to the prevention or detection of violations in respect of securities laws, subject to the provisions of other laws for the time being in force in this regard:

  xiii.            performing such functions and exercising such powers under the provisions of the Securities Contracts (Regulation) Act, 1956, as may be delegated to it by the Central Government;
  xiv.            levying fees or other charges for carrying out the purposes of this section;
   xv.            conducting research for the above purposes;

  xvi.            calling from or furnishing to any such agencies, as may be specified by the Board, such information as may be considered necessary by it for the efficient discharge of its functions;
xvii.            performing such other functions as may be prescribed. 

Management of the Board
The Board consists of the following:-
(a) a Chairman;
(b) two members from amongst the officials of the Ministry of the Central Government dealing with Finance and administration of the Companies Act, 1956;
(c) one member from amongst the officials of the Reserve Bank;
(d) five other members of whom at least three shall be the whole-time members, to be appointed by the Central Government.

The present Chairman of the SEBI is Upendra Kumar Sinha

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