The Securities and Exchange Board of India (SEBI) is the regulatory body in India established in 1988. Regulatory bodies are essential to maintaining openness, stock, and investor protection in the financial markets. The Securities and Exchange Board of India Act, 1992 controls SEBI’s operations. Let’s explore the complex universe of it, and understand its policies, procedures, organizational structure, roles, and authority.
Must Read – Understanding SEBI: The Authority Of Indian Securities Market
ORGANIZATION STRUCTURE OF SEBI
It has 20 departments and follows a corporate kind of culture. In addition to top management, department heads, and numerous important departments, it has a Board of Directors. All 20 departments have been operated by their respective department heads.
The hierarchical structure is as follows:
- The Indian Union Government has nominated the chairman.
- Two individuals associated with the Indian Union Finance Ministry.
- The Reserve Bank of India, or RBI, has one member.
- The Union Government of India nominated the remaining five members.
The following list indicates some of SEBI’s most important departments:
- The Information Technology (IT) Department.
- The overseas portfolio administrators and investors.
- National Institute of Securities Market.
- Investment Management Department.
- Department of Commodity and Derivative Market Regulation.
- Human Resource(HR) Department.
- In addition to these, other important departments handle matters related to finance, law, and enforcement.
SEBI RULES AND GUIDELINES
1)Restriction on Insider trading –
SEBI Regulation Act 2015 restricts insider trading in securities and stocks. It provides essential support to detect insider trading and helps in prevention too.
2)Listing Commitment and declaration requirements –
SEBI Regulation Act 2015 ordered the listing commitment of companies that have listed their securities in the stock exchange of India. These companies must follow these declaration requirements.
3)Acquisition of stocks and takeovers –
SEBI Regulation Act 2011 provides the acquisition and takeover rights for companies listed on the stock exchange of India. It is absolutely a must for an acquirer and the target companies to follow the procedures and declaration.
4)Capital issues and declaration requirements –
SEBI Regulation Act 2018 restricts the declaration requirements for companies that issue capital and provides a structure for the circulation of securities by these companies.
5)Restriction on fraudulent and unethical trade practices –
This regulation restricts fraudulent and unethical trade practices in securities and provides a proper help structure for the supply to detect and prevent such activities.
6)SEBI mutual fund regulation –
Since 1996 this regulation formulated guidelines for the operation of mutual funds in India. It contributes to the registration and regulation of mutual funds as well as the responsibilities of mutual funds and their asset management companies.
7)Issue capital and declaration requirements –
From 2018 this regulation ordered the disclosure or declaration requirements for companies that issue capital to provide a help structure for the issuance of securities by these companies.
8) Buyback of securities –
From 2018 this regulation provides the buyback of securities by companies listed on the stock exchange of India. It ordered the procedures and declarations that must be followed by the companies that wish to buy back their securities or stocks.
9)Credit rating agencies regulation –
Since 1999 this regulation has provided for the regulation and registration of credit rating agencies in India. It formulated the eligibility criteria for credit rating agencies, the responsibility of credit rating agencies, and the procedure for rating securities.
CONCLUSION
As we explain in this article, SEBI is a watchful defender of the nation’s stock market, it works nonstop to maintain market integrity, safeguard the interests of investors, and promote market growth. It’s firm dedication to protecting investors, its strict enforcement protocols, and its strong regulatory structure all contribute to its significant influence over the development of the Indian financial markets.
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FAQs
What is the new SEBI rule?
According to the new SEBI rule, the broker can then assign the shares to the clearing corporation by utilising a claim that is formed in their favour under the new regulations. Before the shares are pledged, the broker will need to get a one-time password from the investor as an extra precaution.
( Source –.Motilal Oswal )
What is regulation 4 SEBI insider trading?
According to 4 SEBI insider trading Any information that has the potential to materially impact a company’s stock price is considered a UPSI. It is clear in Regulation 4 of the SEBI Regulations 2015 that a person cannot trade securities while possessing UPSI.
Who is the SEBI chairman?
The SEBI chairman is Madhabi Puri Buch.
Is SEBI a Central Government job?
It is not the Central Government’s job or the central government does not own SEBI. It was created as an independent body after Parliament passed the SEBI Act 1992.
Who controls SEBI in India?
The SEBI is controlled and run by SEBI’s board of members, which oversees the organization: The chairman, a candidate put forward by the Indian Union Government, two officials from the Ministry of Union Finance.
