Securities And Exchange Board Of India Notes Pdf
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- SEBI – Securities and Exchange Board of India
- SEBI: Role, Objective, Structure and Functions of SEBI
- Securities and Exchange Board of India Act, 1992
- Securities and Exchange Board of India (SEBI) – Economics Study Material & Notes
It was a non-statutory body established to regulate the securities market. The headquarters of the board is situated in Bandra Kurla Complex, Mumbai.
SEBI – Securities and Exchange Board of India
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. Act 26 OF The capital market has witnessed tremendous growth in recent times, characterised particularly by the increasing participation of the public.
Investors' confidence in the capital market can be sustained largely by ensuring investors' protection. With this end in view, Government decided to vest SEBI immediately with statutory powers required to deal effectively with all matters relating to capital market. As Parliament was not in session, and there was an urgent need to instil a sense of confidence in the public in the growth and stability of the capital market, the President promulgated the Securities and Exchange Board of India Ordinance, No.
Amendment Act 9 of Statement of Objects and Reasons. The object of the Securities and Exchange Board of India Act, is to provide for the establishment of the Securities and Exchange Board of India hereafter referred to as the Board to protect the interests of investors in securities and to promote the development of, and to regulate, the securities market and matters connected therewith.
On the basis of past experience of the Board, a need has been felt to amend the said Acts in respect of certain categories of intermediaries, persons associated with the securities market and companies on matters relating to the issue of capital and the transfer of securities. In order to enable the Board to function more effectively, it has become essential to amend the aforesaid Acts to provide inter alia, for the following As Parliament was not in section, President promulgated the Securities Laws Amendment Ordinance, on the 25th January, for the said purpose.
Amendment Act 31 of Statement of Objects and Reasons. Market and credit risks have been reduced by requirement of adequate capitalisation, margining and establishment of clearing corporations in stock exchanges, etc. Systemic improvements have been made by introduction of screen based trading and depositories to allow book entry transfer of securities, etc.
With a view to provide such tools and to strengthen and deepen markets, there is an urgent need to include derivatives as securities in the Securities Contracts Regulation Act, whereby trading in derivatives may be possible within the framework of that Act. Recently many companies especially plantation companies have been raising capital from investors through schemes which are in the form of collective investment schemes. However, there is not an adequate regulatory framework to allow an orderly development of this market.
In order that the interests of investors are protected, it has been decided that the Securities and Exchange Board of India would frame regulations with regard to collective investment schemes.
It is, therefore, proposed to amend the definition of "securities" so as to include within its ambit the derivatives and the units or any other instrument issued by any collective investment scheme to the investors in such schemes.
It is also proposed to substitute section A of the aforesaid Act relating to delegation of powers. At present powers can be delegated to the Securities and Exchange Board of India. It is now proposed to also delegate powers to Reserve Bank of India. The Securities Contracts Regulation Amendment Bill, was introduced in Lok Sabha on the 4th July, proposing amendments in the Securities Contracts Regulation Act, to give effect to the amendments mentioned above.
The Committee submitted its report on the 17th March, Due to this, no proceedings to enforce an index future contracts either by an exchange against a defaulting broker or client against his broker would stand the legal scrutiny before the Court of law.
The Committee was, therefore, of the view that there was no harm in having an overriding provision as a matter of abundant caution. They, therefore, suggested the incorporation of the following provision in the Bill, namely They further observed that most of these exchanges have already been modernised having state-of-the-art technology, the facility of depository and clearance house and moreover, since they are in a better position to handle the risk profiles of the retails investors, institutional investors and corporate bodies, it would be prudent to allow trading in derivatives by such exchanges only.
The Committee had, therefore, proposed that the following Explanation may be added in the Bill, namely They had recommended that a definition of collective investment scheme suitably worded in consonance with the definition recommended by the Dave Committee should be included in the Act.
The Central Government have accepted the above recommendations and incorporated the same in the Bill. Amendment Act 32 of Statement of Objects and Reasons. The objectives of these Acts are to prevent undesirable transactions in securities by regulating the business of dealing therein, to provide for the establishment of the Securities and Exchange Board of India to protect the interests of investors in securities and to promote the development of, and to regulate, the securities markets and to provide for regulation of depositories in securities and for matters connected therewith or incidental thereto.
The Securities Contracts Regulation Act, and the Securities and Exchange Board of India Act, were amended by the Securities Laws Amendment Act, , which, inter alia, made provisions in the Securities and Exchange Board of India Act, for appointment of adjudicating officer for imposition of penalties and for establishment of the Securities Appellate Tribunal to hear appeals against the orders or decisions of such adjudicating officers.
The Central Government has been conferred powers to hear appeal in respect of all matters except hearing of appeals against the orders of adjudicating officer under the Securities and Exchange Board of India Act, under the Securities Contracts Regulation Act, , the Securities and Exchange Board of India Act, and the Depositories Act, In addition to appellate powers, the Central Government, inter alia, has been conferred powers to issue directions and to make rules under these Acts.
The Central Government is also represented on the management of the Securities and Exchange Board of India as well as stock exchanges. The powers of the Central Government to issue directions and to make rules and to appoint members of the Securities and Exchange Board of India as well as on governing body of the stock exchanges are being perceived as compromising its appellate powers.
It is, therefore, proposed to transfer the aforesaid appellate functions of the Central Government under all three Acts from the Central Government to the Securities Appellate Tribunal. Amendment Act 59 of Statement of Objects and Reasons. Recently many shortcoming in the legal provisions of the Securities and Exchange Board of India Act, have been noticed, particularly with respect to inspection, investigation and enforcement.
Currently, the SEBI can call for information, undertake inspections, conduct enquiries and audits of stock exchanges, mutual funds, intermediaries, issue directions, initiate prosecution, order suspension or cancellation of registration. Penalties can also be imposed in case of violation of the provisions of the Act or the rules or the regulations. However, the SEBI has no jurisdiction to prohibit issue of securities or preventing shiphoning of funds or assets stripping by any company.
While the SEBI can call for information from intermediaries, it cannot call for information from any bank and other authority or board or corporation established or constituted by or under any Central, State or Provincial Act. The SEBI cannot retain books of accounts, documents, etc. Under the existing provisions contained in the Securities and Exchange Board of India Act, , the SEBI cannot issue commissions for the examination of witnesses or documents.
Further, the SEBI has pointed out that existing penalties are too low and do not serve as effective deterrents. At present, under section A of the Companies Act, , the SEBI can conduct inspection of listed companies only for violations of the provisions contained in sections referred to in section A of that Act but it cannot conduct inspection of any listed public company for violation of the SEBI Act or rules or regulations made thereunder.
In addition, growing importance of the securities markets in the economy has placed new demands upon the SEBI in terms of organisation structure and institutional capacity.
A need was therefore felt to remove these shortcomings by strengthening the mechanisms available to the SEBI for investigation and enforcement so that it is better equipped to investigate and enforce against market malpractices. It is now proposed to replace the Ordinance by a Bill, with, inter alia, the following features-. B restrain persons from accessing the securities market and prohibit any person associated with securities market to buy, sell or deal in securities;.
C suspend any office-bearer of any stock exchange or self-regulatory organisation from holding such position;.
D impound and retain the proceeds or securities in respect of any transaction which is under investigation;. E attach, after passing of an order on an application made for approval by the Judicial Magistrate of the first class having jurisdiction, for a period not exceeding one month, one or more bank account or accounts of any intermediary or any person associated with the securities market in any manner involved in violation of any of the provisions of this Act, or the rules or the regulations made thereunder;.
F direct any intermediary or any person associated with the securities market in any manner not to dispose of or alienate an asset forming part of any transaction which is under investigation;. Provided that no member shall be removed under this clause unless he has been given a reasonable opportunity of being heard in the matter. Member not to participate in meetings in certain cases. Transfer Of Assets, Liabilities, Etc. Provided that the Board, for the purpose of furnishing any information to any authority outside India, may enter into an arrangement or agreement or understanding with such authority with the prior approval of the Central Government].
Provided that only the bank account or accounts or any transaction entered therein, so far as it relates to the proceeds actually involved in violation of any of the provisions of this Act, or the rules or the regulations made thereunder shall be allowed to be attached;.
Provided that the Board may, without prejudice to the provisions contained in sub-section 2 or sub-section 2-A , take any of the measures specified in clause d or clause e or clause f , in respect of any listed public company or a public company not being intermediaries referred to in section 12 which intends to get its securities listed on any recognised stock exchange where the Board has reasonable grounds to believe that such company has been indulging in insider trading or fraudulent and unfair trade practices relating to securities market:.
Provided further that the Board shall, either before or after passing such orders, give an opportunity of hearing to such intermediaries or persons concerned.
Board to regulate or prohibit issue of prospectus, offer document or advertisement soliciting money for issue of securities. Collective investment scheme. Provided that the Investigating Authority may call for any book, register, other document and record if they are needed again:. Provided further that if the person on whose behalf the books, registers, other documents and record are produced requires certified copies of the books, registers, other documents and record produced before the Investigating Authority, it shall give certified copies of such books, registers, other documents and record to such person or on whose behalf the books, registers, other documents and record were produced.
Provided that the Magistrate shall not authorise seizure of books, registers, other documents and record, of any listed public company or a public company not being the intermediaries specified under section 12 which intends to get its securities listed on any recognised stock exchange unless such company indulges in insider trading or market manipulation.
Provided that the Investigating Authority may, before returning such books, registers, other documents and record as aforesaid, place identification marks on them or any part thereof. Cease and desist proceedings. Provided that the Board shall not pass such order in respect of any listed public company or a public company other than the intermediaries specified under section 12 which intends to get its securities listed on any recognised stock exchange unless the Board has reasonable grounds to believe that such company has indulged in insider trading or market manipulation.
Provided that a person buying or selling securities or otherwise dealing with the securities market as a stock-broker, sub-broker, share transfer agent, banker to an issue, trustee of trust deed, registrar to an issue, merchant banker, underwriter, portfolio manager, investment adviser and such other intermediary who may be associated with securities market immediately before the establishment of the Board for which no registration certificate was necessary prior to such establishment, may continue to do so for a period of three months from such establishment or, if he has made an application for such registration within the said period of three months, till the disposal of such application:.
Provided that any person sponsoring or causing to be sponsored, carrying or causing to be carried on any venture capital funds or collective investment scheme operating in the securities market immediately before the commencement of the Securities Laws Amendment Act, for which no certificate of registration was required prior to such commencement, may continue to operate till such time regulations are made under clause d of sub-section 2 of section Provided that no order under this sub-section shall be made unless the person concerned has been given a reasonable opportunity of being heard.
Prohibition of manipulative and deceptive devices, insider trading and substantial acquisition of securities or control. Penalty for failure to furnish information, return, etc. Penalty for failure by any person to enter into agreement with clients.
Penalty for failure to redress investors' grievances. Penalty for certain defaults in case of mutual funds. Penalty for failure to observe rules and regulations by an asset management company. Penalty for default in case of alternative investment funds, infrastructure investment trusts and real estate investment trusts. Penalty for default in case of investment adviser and research analyst. Penalty for default in case of stock brokers. Penalty for non-disclosure of acquisition of shares and takeovers.
Penalty for fraudulent and unfair trade practices. Penalty for contravention where no separate penalty has been provided. Power to adjudicate. Provided that no such order shall be passed unless the person concerned has been given an opportunity of being heard in the matter:. Provided further that nothing contained in this sub-section shall be applicable after an expiry of a period of three months from the date of the order passed by the adjudicating officer or disposal of the appeal under section 15T, whichever is earlier.
Crediting sum realised by way of penalties to Consolidated Fund of India. Settlement of administrative and civil proceedings. Establishment of Securities Appellate Tribunals. Composition of Securities Appellate Tribunal. Provided that the Securities Appellate Tribunal, consisting of one person only, established before the commencement of the Securities and Exchange Board of India Amendment Act, , shall continue to exercise the jurisdiction, powers and authority conferred on it by or under this Act or any other law for the time being in force till two other Members are appointed under this section.
Provided that a member of the Board or any person holding a post at senior management level equivalent to Executive Director in the Board shall not be appointed as Presiding Officer or Member of a Securities Appellate Tribunal during his service or tenure as such with the Board or within two years from the date on which he ceases to hold office as such in the Board. Provided that no person shall hold office as the Presiding Officer of the Securities Appellate Tribunal after he has attained the age of sixty-eight years:.
Provided further that no person shall hold office as a Member of the Securities Appellate Tribunal after he has attained the age of sixty-two years. Salary and allowances and other terms and conditions of service of Presiding Officers.
SEBI: Role, Objective, Structure and Functions of SEBI
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It was introduced to promote transparency in the Indian investment market. Besides its headquarters in Mumbai, the establishment has several regional offices across the country including, New Delhi, Ahmedabad, Kolkata and Chennai. It is entrusted with the task to regulate the functioning of the Indian capital market. The regulatory body lays focus on monitoring and regulating the securities market in India to safeguard the interest of investors and aims to inculcate a safe investment environment by implementing several rules and regulations as well as by formulating investment-related guidelines. It has a Board of Directors, senior management, department heads and several crucial departments. To be precise, it comprises of over 20 departments, all of which are supervised by their respective department heads, who in turn are administered by a hierarchy in general.
It is functioning under administrative control of Ministry of Finance. This ever expending investor population and market capitalization led to variety of malpractices on the part of companies, brokers merchant brokers, investment consultants involved in Securities Market. Such malpractices and unfair practices have eroded investor confidence and multiplied investor grievances. The example of malpractices include existence of self-styled merchant bankers, unofficial private placement, rigging of prices unofficial premium in new issues, non-adherence of provisions of the companies act, violation of rules and regulation of stock exchange listing requirements, delay in delivering shares etc. Market intermediaries play a very important role in development of the market by providing a variety of services. Market intermediaries can be classified on the basis of the services provided by them.
Securities and Exchange Board of India Act, 1992
The security market in an economy is that segment of a financial market which raises Long-term Capital through instruments like shares, securities, bonds, mutual funds, debentures. This market is known as the security market of economy. Primary Markets: It is a market where those instruments are traded directly between the entity raising capital and the instrument purchasing entity. Secondary Markets: The market where those instruments of security market are traded among the primary instrument holders. These transactions require an institutionalized floor for trading, this platform is known as the stock exchanges.
Securities and Exchange Board of India SEBI was first established in as a non-statutory body for regulating the securities market. After the amendment of , collective investment schemes were brought under SEBI except nidhis , chit funds and cooperatives. Ajay Tyagi was appointed chairman on 10 February , replacing U K Sinha ,  and took charge of the chairman office on 1 March The board comprises:  .
The Securities and Exchange Board of India Sebi is a statutory regulatory body established by the Government of India in to regulate the securities market in India and protect the interests of investors in securities. SEBI has the power to regulate and perform functions such as check the books of accounts of stock exchanges and call for periodical returns, approve by-laws of stock exchanges, inspect the books of financial intermediaries such as banks, compel certain companies to get listed on one or more stock exchanges, and handle the registration of brokers. SEBI was established to keep a check on unfair and malpractices and protect the investors from such malpractices.
Securities and Exchange Board of India (SEBI) – Economics Study Material & Notes
It was initially established as a non-statutory body, i. SEBI plays an important role in regulating the securities market of India. Thereby it is important to know the purpose and objective of SEBI. At the end of the s and during s, capital markets were emerging as the new sensation among the individuals of India. Many malpractices started taking place such as unofficial self- styled merchant bankers, unofficial private placements, rigging of prices, non-adherence of provisions of the Companies Act, violation of rules and regulations of stock exchanges, delay in delivery of shares, price rigging, etc. Due to these malpractices, people started losing confidence in the stock market.
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. Act 26 OF The capital market has witnessed tremendous growth in recent times, characterised particularly by the increasing participation of the public. Investors' confidence in the capital market can be sustained largely by ensuring investors' protection. With this end in view, Government decided to vest SEBI immediately with statutory powers required to deal effectively with all matters relating to capital market. As Parliament was not in session, and there was an urgent need to instil a sense of confidence in the public in the growth and stability of the capital market, the President promulgated the Securities and Exchange Board of India Ordinance, No.
- У него был врожденный порок сердца. - Никогда об этом не слышала. - Так записано в его медицинской карточке. Он не очень-то об этом распространялся. Сьюзан трудно было поверить в такое удачное совпадение.
ТО: NDAKOTAARA. ANON. ORG FROM: ETDOSHISHA. EDU МЕНЯЮЩИЙСЯ ОТКРЫТЫЙ ТЕКСТ ДЕЙСТВУЕТ. ВСЯ ХИТРОСТЬ В МЕНЯЮЩЕЙСЯ ПОСЛЕДОВАТЕЛЬНОСТИ. В это трудно было поверить, но она видела эти строки своими глазами.
Гипотетическое будущее правительство служило главным аргументом Фонда электронных границ. - Стратмора надо остановить! - кричал Хейл. - Клянусь, я сделаю. Этим я и занимался сегодня весь день - считывал тексты с его терминала, чтобы быть наготове, когда он сделает первый шаг, чтобы вмонтировать этот чертов черный ход. Вот почему я скачал на свой компьютер его электронную почту.
Каковы ваши рекомендации? - требовательно спросил Фонтейн. - Что вы предлагаете. - Рекомендации? - выпалил Джабба.
Как трасса, на продолжение которой не хватило денег, улочка вдруг оборвалась. Перед ним была высокая стена, деревянная скамья и больше. Он посмотрел вверх, на крышу трехэтажного дома, развернулся и бросился назад, но почти тут же остановился.
- Стратмор сказал, что у них все в порядке. - Он солгал.