भारतीय प्रतिभूति एवं विनिमय बोर्ड www.sebi.gov.in

Roll no Name 5114 Shweta sagar 5061 Namrata shah

भारतीय प्रतिभूति और विनिमय बोर्ड Securities and Exchange Board of India भारतीय प्रतिभूति और विनिमय बोर्ड Agency overview Formed 12 April 1992 Jurisdiction Government of India Headquarters Mumbai, Maharashtra Agency executive U. K. Sinha, Chairman Website www.sebi.gov.in SEBI Bhavan, Mumbai headquarters

Management of the board The Board shall consist of the following members, namely:- a Chairman Two members, One from amongst the officials of the Ministry of the Central Government dealing with Finance and second from administration of the Companies Act, 1956. One member from amongst the officials of the Reserve Bank of India. Five other members of whom at least three shall be the whole-time members to be appointed by the central Government .

In 1988 the Securities and Exchange Board of India (SEBI) was established by the Government of India through an executive resolution, and was subsequently upgraded as a fully autonomous body (a statutory Board) in the year 1992 with the passing of the Securities and Exchange Board of India Act (SEBI Act) on 30th January 1992.

The Preamble of the Securities and Exchange Board of India describes the basic functions of the Securities and Exchange Board of India as “…..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”.

How SEBI came into picture The World Bank and the International Monetary Fund (IMF) have introduced a benchmark i.e., Financial Services Assessment Programme (FSAP) to strengthen the monitoring of financial systems in the context of the IMF’s bilateral surveillance and the World Bank’s financial sector development work. The FSAP is designed to help countries enhance their resilience to crisis and cross-border contagion, and to foster growth by promoting financial system soundness and financial sector diversity. SEBI endeavors to achieve the standards of IOSCO/FSAP. Amendments will be required to be made in the Securities Laws especially the SEBI Act, which will facilitate India and SEBI to achieve its objective.

BASIC objectives Reforms of 1991- increase in activities of primary and secondary market. In 1992- multicrore securities scam rocked in Indian financial system. Need for an autonomous, statutory and integrated organization

In 1988 the Securities and Exchange Board of India (SEBI) was established by the Government of India through an executive resolution. And it was subsequently upgraded as a fully autonomous body (a statutory Board) in the year 1992 with the passing of the Securities and Exchange Board of India Act (SEBI Act) on 30th January 1992.

The basic objectives of the Board were identified as: To protect the interests of investors in securities; To promote the development of Securities Market; To regulate the securities market and for matters connected therewith or incidental thereto.

Functions of SEBI The SEBI Act, 1992 has entrusted with two functions, they are Regulatory functions And Developmental functions

Regulatory Functions Regulation of stock exchange and self regulatory organizations. Registration and regulation of stock brokers, sub-brokers, Registrars to all issues, merchant bankers, underwriters, portfolio managers etc. Registration and regulation of the working of collective investment schemes including mutual funds. Prohibition of fraudulent and unfair trade practices relating to securities market. Prohibition of insider trading Regulating substantial acquisition of shares and takeover of companies.

Developmental Functions Promoting investor’s education Training of intermediaries Conducting research and publishing information useful to all market participants. Promotion of fair practices Promotion of self regulatory organizations

Powers of SEBI Power to call periodical returns from recognized stock exchanges. Power to compel listing of securities by public companies. Power to levy fees or other charges for carrying out the purposes of regulation. Power to call information or explanation from recognized stock exchanges or their members. Power to grant approval to bye-laws of recognized stock exchanges.

Powers of SEBI continue.. Power to control and regulate stock exchanges. Power to direct enquiries to be made in relation to affairs of stock exchanges or their members. Power to make or amend bye-laws of recognized stock exchanges. Power to grant registration to market intermediaries. Power to declare applicability of Section 17 of the Securities Contract (Regulation) Act 1956, in any State or area, to grant licenses to dealers in securities.

Various departments under SEBI S. No. Name of Dept. 1. MARKET INTERMEDIARIES REGULATION AND SUPERVISION DEPARTMENT (MIRSD) 2. DERIVATIVES AND NEW PRODUCTS DEPARTMENT (DNPD) 3. INVESTMENT MANAGEMENT DEPARTMENT (IMD) 4. INVESTIGATIONS DEPARTMENT (IVD) 5. LEGAL AFFAIRS DEPARTMENT (LAD) 6. OFFICE OF INVESTOR ASSISTANCE & EDUCATION (OIAE) 7. DEPARTMENT OF ECONOMIC & POLICY ANALYSIS (DEPA) 8. INFORMATION TECHNOLOGY DEPARTMENT (ITD)

Various departments under SEBI continue… S. No. Name of Dept. 9. MARKET REGULATION DEPARTMENT (MRD) 10. CORPORATION FINANCE DEPARTMENT (CFD) 11. INTEGRATED SURVEILLANCE DEPARTMENT (ISD) 12. ENFORCEMENT OF DEPARTMENT (EFD) 13. ENQUIRIES & ADJUDICATION DEPARTMENT (EAD) 14. GENERAL SERVICES DEPARTMENT (GSD) 15. OFFICE OF THE CHAIRMEN (OCH) 16. THE REGIONAL OFFICES (RO’s)

Regulations of SEBI The SEBI has powers to register & regulate all market intermediaries. The SEBI has powers to penalize them in case of violations of the provisions of the act, rules & regulations made there under. It can conduct enquiries ,audits & inspection of all market intermediaries & adjudicate offences under the SEBI Act,1992. 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

Primary Market Intermediaries Merchant Bankers Registrars to an Issue (RTI) and Share Transfer Agents (STA) Bankers to an issue Debenture trustees Underwriters Portfolio managers

Secondary Market Intermediaries Stock Brokers Sub Brokers Stock Exchanges Foreign Institutional Investors (FIIs) Custodians Depositories Mutual Funds Venture Capital Funds

Regulations SEBI (Stock Brokers and Sub Brokers) Regulations,1992 SEBI (Merchant Bankers) Regulations,1992 SEBI (Portfolio Managers) Regulations,1992 SEBI (Registrars to an Issue and Share Transfer Agents) Regulations,1993 SEBI (Underwriters) Regulations,1993 SEBI (Debenture Trustees) Regulations,1993 SEBI (Bankers to an Issue) Regulations,1994 SEBI (Foreign Institutional Investors) Regulations,1995 SEBI (Depositories and Participants) Regulations,1996

SEBI (Venture Capital Funds) Regulations,1996 SEBI (Mutual Funds) Regulations,1996 All the primary & secondary intermediaries can deal in the securities market only after they obtain a certificate of registration from the SEBI. The certificate of registration can be suspended or cancelled by the SEBI in the manner prescribed in the regulations.

Supervision of securities Market The SEBI supervises the securities market through on-site & offsite inspections,enforcement,enquiry against violation of rules & regulations and prosecutions. It also showcause notices to companies on the basis of reports submitted by the depositories.

A Presentation on IRDA

IRDA-Insurance Regulatory & Development Authority Controlling and regulatory apex body in the country for insurance sector Chairman and members - appointed by Government of India. HQ located at Hyderabad.

Mission Statement of IRDA a) To protect the interests of the policyholders b) To promote, regulate and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto c) Conduction of insurance businesses across India in an ethical manner. IRDA

Composition of Authority The Authority is a ten member team consisting of      (a)    a Chairman;      (b)    five whole-time members;      (c)    four part-time members,  (all appointed by the Government of India)

FEATURES OF IRDA The insurance sector in India has been thrown open to the private sector. In the non life sector, IRDA would give preference to companies providing health insurance. All the powers presently exercised under the insurance act 1938 by the controller of insurance (COI) will be transferred to the IRDA. The act gives statutory status for the interim insurance regulatory authority(IRA),set Up by the central government through a resolution passed in January 1996. On foreign promoters, the maximum of 26 percent will always be operational. They will thus be unable to hold any equity beyond this ceiling at any stage.

Duties/Powers/Functions Registration Protection Qualification Code of conduct Efficiency Fees Information Terms of business Books of accounts

Insurance Regulations (Regulations issued by IRDA) IRDA (licensing of agents) regulation 2000. IRDA (surveyors & loss assessors ) regulation, 2000. IRDA (insurance advertisement & disclosures) regulation, 2000.

Insurance Regulations IRDA (obligations of insurers to rural sectors) regulation, 2000 IRDA (investments) regulation, 2000 IRDA (third party administrators) regulation 2001 IRDA (protection of policyholder’s interest ) regulations, 2002 IRDA ( licensing of corporate agents) regulations 2002

DOCUMENTS TO BE FILED: A certified copy of memorandum & articles of association, Name & address of the directors & their occupation, A Statement of the class of insurance business done or to be done, A certified copy of published prospectus & standard policy forms of the insurer. The receipt showing payment of fee Rs. 50000. GRANT OF CERTIFICATE: After satisfying the soundness of the management of the applicant, volume of its business & other requirements, the authority may register the applicant & grant a certificate of registration.

CANCELLATION OF REGISTRETION: CANCELLATION OF REGISTRETION: The Authority may cancel the registration of an insurer if he fails to comply with requirements of deposits with RBI, TRANSFER HIS BUSINESS, do not pay any claim within 3 months of final court judgement etc. RENEWAL OF REGISTRATION: The insurer has to file an application of renewal before 31stDecember of preceding year along with evidence of payment of requisite fee. FEE:1/4th percent of total gross premium or Rs. 5 crore whichever is less, & a minimum of Rs. 50000 for each class of business. CAPITAL REQUIREMENT: The capital of insurance Company should consist ordinary shares each of which has single face value, paid amount of all should be same & maintain the register of shareholders with names & address.

RENEWAL OF REGISTRATION: An insurer who has been granted a certificate shall make application in the form of IRDA/R5 for renewal of certificate before the 31st December each year with the evidence of payment of fee. CAPITAL ADEQUACY REQUIREMENT: Paid up equity capital of 100 crores in case of person carrying life insurance and general insurance business. Paid up equity capital of Rs.200 crores in case of company carrying business as re-insurer. DEPOSITS: Keep the deposits with RBI either cash or approved securities- Life insurance business- not exceeding 10 crores General insurance business-not exceeding 10 crores Re-insurance business-a sum of Rs.20 crores

Case issue between SEBI & IRDA

Thank You