-SUPRYA MAHESHWAR

SIBI ACT, 1qq

SIBI ACT, 1qq
O TIe AcL muy be cuIIed LIe SecurILIes und ExcIunge
Bourd oI ndIu AcL, 1qqz.
O L exLends Lo LIe wIoIe oI ndIu.
O L sIuII be deemed Lo Iuve come InLo Iorce on LIe
oLI duy oI Junuury, 1qqz.
O An AcL Lo provIde Ior LIe esLubIIsImenL oI u Bourd
(SEB)Lo proLecL LIe InLeresLs oI InvesLors In
securILIes.
ISSION OI SIBI ACT
O SEBI Act, 1992 was Iormed with the prime objective oI
Protecting the interests of investors in securities,
Promoting the development of, and
Regulating, the securities market and for matters
connected therewith .
ISTABLISHINT OI THI
SICLRITIIS AN IXCHANGI BOAR OI INIA
O SecurILIes und ExcIunge Bourd oI ndIu Is LIe noduI
ugency Lo reguIuLe LIe cupILuI murkeL und oLIer
reIuLed Issues In ndIu.
O SEB Ius been consLILuLed on LIe IInes oI SecurILIes
und ExcIunge CommIssIon oI USA.
O TIe Ieud oIIIce oI LIe Bourd Is uL MumbuI
Composition oI the Bourd
TIe Bourd sIuII consIsL oI LIe IoIIowIng members,
numeIy:-
O u CIuIrmun;
O Lwo members Irom umongsL LIe oIIIcIuIs oI LIe oI
LIe CenLruI GovernmenL deuIIng wILI Inunce
udmInIsLruLIon oI LIe CompunIes.
O one member Irom umongsL LIe oIIIcIuIs oI LIe
Reserve Bunk;
O IIve oLIer members oI wIom uL IeusL LIree sIuII be
LIe wIoIe-LIme members Lo be uppoInLed by LIe
cenLruI GovernmenL.
Objectives OI SIBI
O To provIde u degree oI proLecLIon Lo LIe InvesLors
und suIeguurd LIeIr rIgILs und Lo ensure LIuL LIere Is
u sLeudy IIow oI Iunds In murkeL
O To promoLe IuIr deuIIngs by Issuer oI securILIes und
ensure u murkeL wIere LIey cun ruIse Iunds uL u
reIuLIveIy Iow cosL.
O To reguIuLe LIe code oI conducL Ior IInuncIuI
InLermedIurIes
O To provIde IeIp Ior LIe muLLers connecLIng wILI LIe
ubove.
Ionctions oI SIBI
1. SubjecL Lo LIe provIsIons oI LIIs AcL, IL sIuII be
LIe duLy oI LIe Bourd Lo proLecL LIe InLeresLs oI
InvesLors In securILIes und Lo promoLe LIe
deveIopmenL oI, und Lo reguIuLe LIe securILIes
murkeL, by sucI meusures us IL LIInks IIL.
2. Registration And Regulation OI The Working OI
Intermediaries
. ReguIuLes LIe workIng oI LIe deposILorIes , cusLodIuns
oI securILIes, IoreIgn InsLILuLIonuI InvesLors, credIL
ruLIng ugencIes und sucI oLIer InLermedIurIes
PorLIoIIo Munugers PorLIoIIo Munugers
Sub Sub- - Brokers Brokers UnderwrILers UnderwrILers
SLock brokers SLock brokers MercIunL Bunkers MercIunL Bunkers
Secondury urket Secondury urket Primury urket Primury urket
. Registration And Regulation Of Mutual Funds, Venture
Capital Funds & Collective Investment Schemes
AMFI-SelI Regulatory Organization-'promoting and protecting the
interest oI mutual Iunds and their unit-holders, increasing public
awareness oI mutual Iunds, and serving the investors' interest by
deIining and maintaining high ethical and proIessional standards in the
mutual Iunds industry'.
Every mutual Iund must be registered with SEBI and registration is
granted only where SEBI is satisIied with the background oI the Iund.
SEBI has the authority to inspect the books oI accounts, records and
documents oI a mutual Iund, its trustees, custodian where it deems it
necessary
SEBI (Mutual Funds) Regulations, 1996 lays down the provisions Ior LIe appointment oI
the trustees and their obligations
O Every new scheme launched by a mutual Iund needs to be Iiled with SEBI and SEBI
reviews the document in regard to the disclosures contained in such documents.
O Regulations have been laid down regarding listing oI Iunds, reIund procedures, transIer
procedures, disclosures, guaranteeing returns etc
O SEBI has also laid down advertisement code to be Iollowed by a mutual Iund in making
any publicity regarding a scheme and its perIormance
O In case oI a change in the controlling interest oI an asset management company,
investors should be given at least 30 days time to exercise their exit option.
O Mutual Iunds are allowed to invest in ADR`s and GDR`s.
. Prohibiting Fraudulent And UnIair Trade Practices In The
Securities Market
SEBI is vested with powers to take action against these
practices relating to securities market manipulation and
misleading statements to induce sale/purchase oI securities.
. Prohibition OI Insider Trading
. Investor Education And The Training Of Intermediaries
SEBI distributed the booklet titled 'A Quick ReIerence Guide Ior Investors
to the investors
SEBI also issued a series oI advertisement /public notices in national as
well as regional newspapers to educate and caution the investors about the
risks associated with the investments in collective investment schemes
SEBI has also issued messages in the interest oI investors on National
Channel and Regional Stations on Doordarshan.
-ReIerence SEB oIIIcIuI websILe
. ReguIuLIng subsLunLIuI ucquIsILIon oI sIures und
Lukeover oI compunIes.
9. Promoting & Regulating SelI Regulatory Organizations
In order Ior the SRO to eIIectively execute its responsibilities, it would be
required to be structured, organized, managed and controlled such that it
retains its independence, while continuing to perIorm a genuine market
development role
1o. Inspection And Inquiries
11. Levying Fees Or Other Charges For Carrying Out The
Above Purposes
1z. Conducting Research For The Above Purposes
O n order Lo obLuIn LIe ubove objecLIves , SEB Ius Issued
GuIdeIInes, RuIes und ReguIuLIon Irom LIme Lo LIme. TIe
mosL Imp oI LIese ure SEB GuIdeIInes zooo.
O L deuIs wILI:
O EIIgIbIIILy norms Ior compunIes IssuIng securILIes
O PrIcIng oI securILIes by compunIes
O Pre Issue obIIguLIons oI mercIunL Bunker
O ConLenLs oI ProspecLus
O PosL Issue obIIguLIon oI mercIunL bunker
O GuIdeIInes Ior prospecLus
O GuIdeIInes Ior Issue oI debL InsLrumenL
O GuIdeIInes Ior book buIIdIng process
O GuIdeIInes Ior bonus Issues.
Goidelines by SIBI Ior Poblic Issoes
O A company cannot come out with public issue unless raft Prospectus is Iiled with SEBI.
Prospectus is a document by way oI which the investor gets all the inIormation pertaining to the
company in which they are going to invest. It gives the detailed inIormation about the Company,
Promoter / Directors, group companies, Capital Structure, Terms oI the present issue etc.
O A company cannot Iile prospectus directly with SEBI. It has to be Iiled through a merchant
banker. AIter the preparation oI prospectus, the merchant banker along with the due diligence
certiIicates and other compliances and sends the same to SEBI Ior Vetting.
O SEBI on receiving the same scrutinizes it and may suggest changes within 21 days oI receipt oI
prospectus
O The company can come out with a public issue any time within 180 days Irom the date oI the
letter Irom SEBI or iI no letter is received Irom SEBI, within 180 days Irom the date oI expiry oI
21 days oI submission oI prospectus with SEBI
O II the issue size is upto Rs. 20 crores then the merchant bankers are required to Iile prospectus
with the regional oIIice oI SEBI Ialling under the jurisdiction in which registered oIIice oI the
company is situated.
II the issue size is more than Rs. 20 crores, merchant bankers are required to Iile prospectus at
SEBI, Mumbai oIIice.
THANKING YOL