Securities and Exchange Board of India (SEBI)

In News 

• Securities and Exchange Board of India (SEBI) announced that Madhabi Puri Buch has been appointed as the new Chairman of the board. 
  • The appointment is initially for a period of three years.

Securities and Exchange Board of India (SEBI)

• About:
  • SEBI is a statutory body established on April 12, 1992 in accordance with the provisions of the Securities and Exchange Board of India Act, 1992.
• Background:
  • Before SEBI came into existence, Controller of Capital Issues was the regulatory authority; it derived authority from the Capital Issues (Control) Act, 1947.
  • In April, 1988 the SEBI was constituted as the regulator of capital markets in India under a resolution of the Government of India.
  • Initially SEBI was a non statutory body without any statutory power.
  • It became autonomous and given statutory powers by SEBI Act 1992.
• Aim: 
  • To protect the interests of investors in securities and to promote the development of, and regulate the securities market.
  • It is the regulator of the securities and commodity market in India owned by the Government of India.
• Powers & Functions:
  • It is a quasi-legislative and quasi-judicial body which can draft regulations, conduct inquiries, pass rulings and impose penalties.
  • To protect the interests of Indian investors in the securities market.
  • To promote the development and hassle-free functioning of the securities market.
  • To regulate the business operations of the securities market.
  • To serve as a platform for portfolio managers, bankers, stockbrokers, investment advisers, merchant bankers, registrars, share transfer agents and other people.
  • To regulate the tasks entrusted to depositors, credit rating agencies, custodians of securities, foreign portfolio investors and other participants.
  • To educate investors about securities markets and their intermediaries.
  • To prohibit fraudulent and unfair trade practices within the securities market and related to it.
  • By Securities Laws (Amendment) Act, 2014, SEBI is now able to regulate any money pooling scheme worth Rs. 100 cr. or more and attach assets in cases of non-compliance.

Source:Business today