SEBI Full Form

SEBI’s full name is the Securities and Exchange Board of India. It is the regulator of India’s capital market, i.e. the market for equity and debt securities. SEBI is headquartered in Mumbai. It has four regional offices in New Delhi, Chennai, Kolkata, and Ahmadabad.

This article contains the full form of SEBI along with the briefings of its inception, the board of members, objectives, functions, power, guidelines, and schemes formed by SEBI.

SEBI Inception

The government of India established the SEBI in 1988. Under the Security and Exchange Board of India Act of 1992, it was established as an autonomous, statutory, and integrated organization to ensure the smooth operation of the Indian Financial System’s capital markets.

Management of the SEBI

The management of the SEBI consists of the following board of members:

One chairman-nominated by the Union Government of India.

Two members from the Union Finance Ministry

One member from the Reserve Bank of India

Five members are nominated by the Union Government of India.

Ajay Tyagi is the present chairman of SEBI.

SEBI Objective

The board works under the Ministry of Finance to fulfill the following objectives:

Protection of the interest of the public in the security market
Promotion of the development of the security market and
Regulation of the security market and related matters.

Functions of SEBI

Regulation of stock exchanges and other businesses in the security market

Registration and regulation of the functions and workings of merchant bankers, sub-brokers, stockbrokers, share transfer agents, bankers to an issue, trustees of trust deeds, registrars to an issue, underwriters, portfolio managers, and other intermediaries associated with the security market, collective investment schemes, and mutual funds.

Insider trading, fraudulent and unfair trade practices are prohibited in the securities market.

Promotion of investor education and trading of securities

Regulation of significant share acquisitions and corporate takeovers

Inspection, conducting inquiries, audits of the stock, and levying fees or other charges for any misconduct.

Plays a significant role in the merger and acquisition of shares of companies.

Powers of SEBI

- The inspector requests any other officer of the financial market to inspect the books of market participants, bankers to an issue, and other intermediaries.
- Suspend or cancel the certificate of registration of any of the market intermediaries who furnish false information.

Some of the significant Regulations, Guidelines and Schemes Issued by the SEBI are-

SEBI Regulations

SEBI (Foreign Institutional Investors) Regulations, 1995
SEBI (Venture Capital Funds) Regulations, 1996
SEBI (Buyback of Securities) Regulations, 1998
SEBI (Credit Rating Agencies) Regulations, 1999
SEBI (Foreign Venture Capital Investors) Regulations, 2000
SEBI (Procedure for Board Meeting) Regulations, 2001
SEBI (Issue of Sweat Equity) Regulations, 2002
SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002
SEBI (Ombudsman) Regulations, 2003
SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003

SEBI Guidelines

SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme), 1999
SEBI (Disclosure and Investor Protection), 2000
SEBI (Delisting of Securities), 2003

SEBI Schemes

Securities Lending Scheme, 1997
SEBI (Informal Guidance) Scheme, 2003

SAT: Any intermediary can appeal against the orders of the SEBI under the securities laws before a securities appellate tribunal (SAT). SAT, a statutory body established under the SEBI Act, is also entitled to exercise jurisdiction, powers, and authority with the consent of SEBI and the appellant.

SCORES: The SEBI Complaints Redress System is an online platform to register complaints to improve the grievance redressal mechanism.

Conclusion

SEBI has a corporate framework that is made up of various departments, each of which is led by a department head. SEBI is comprised of approximately 20 departments. Corporate finance, economic and policy analysis, debt and hybrid securities, enforcement, human resources, investment management, commodity derivatives market regulation, legal affairs, and other departments are among them.

The SEBI has three primary functions:

SEBI has the authority to issue judgments relating to securities fraud and other unethical practices in the market.
SEBI has the authority to carry out the regulations and judgments that have been issued, as well as to take legal action against those who violate them.
SEBI reserves the right to create rules and regulations to protect investors’ interests.