Professional Documents
Culture Documents
Content
Introduction Preamble About chairperson Board members Function of the board Function of SEBI Role of SEBI in global meltdown
Content
Hierarchy of SEBI SEBI with NRIs Grievance handling Types of grievances Listing Basic requirement for listing Steps of listing
INTRODUCTION
SEBI is the Regulator for the Securities Market in India.
Originally set up by the Government of India in 1988, it acquired statutory form in 1992 with SEBI Act 1992 being passed by the Indian Parliament.Chaired by C B Bhave, SEBI is headquartered in the popular business district of Bandra-Kurla complex in Mumbai, and has Northern, Eastern, Southern and Western regional offices in New Delhi, Kolkata, Chennai and Ahmedabad.
Preamble
..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
ABOUT CHAIRPERSON
Chandrasekhar Bhaskar Bhave is the 6th chairman of the Securities Market Regulator. Prior to taking charge as Chairman SEBI, he had been the chairman of NSDL (National Securities Depository Limited) ushering in paperless securities. Prior to his stint at NSDL, he had served SEBI as a Senior Executive Director. He is a former Indian Administrative Service officer of the 1975 batch.
Board members
The board comprises of : Mr. CB Bhave - Chairman , SEBI
Mr. KP Krishnan - Joint secretary, ministry of finance - Secretary, ministry of corporate affairs -Director, national judicial academy, Bhopal
Contd.
Mr. M S sahoo
Dr. K M Abraham Mr. Mohandas pai Mr. Prashant saran
- Whole time member SEBI - Whole time member SEBI - Director, infosys - Whole time member SEBI
Function contd
c. Listing and monitoring the functioning of stock brokers, sub brokers, share transfer agents, bankers to an issue, trustees of trust deeds, registrars to an issue, merchant bankers, underwriters, portfolio managers, investment advisers and others associated with securities markets by any means.
Function contd
d. Monitoring and Controlling the functioning of venture capital funds and mutual funds.
e. Forbid unjust and dishonest trade practices in the security markets and forbid insider trading in the security market. f. Undertake periodic audits of stock exchanges, mutual funds, individuals and self regulatory organizations associated with the security market.
Contd
SEBI -success as a regulator by
pushing systemic reforms aggressively and successfully (e.g. the quick movement towards making the markets electronic and paperless rolling settlement). SEBI has been active in setting up the regulations as required under law.
SEBI HIERARCHY
Shri C B Bhave CHAIRMAN chairman@sebi.gov.in
Shri MS Sahoo
Legal affair dept.
Enforcement dept. Derivatives and New Products Dept. RTI Act including hearing of appeals under RTI Act Market Intermediaries Regulation and Supervision Dept.
Board Matters
Dr. K M ABRAHAM
Vigilance Cell Office of International Affairs Integrated Surveillance Dept.
Investigations Department
Regional Offices
GRIVIANCE HANDELING
SEBI takes up grievances related to issue and transfer of securities and non-payment of dividend with listed companies.
In addition, SEBI also takes up grievances against the various intermediaries registered with it and related issues.
Types of grievances
Refund Order/ Allotment Advise. Non-receipt of dividend. Non-receipt of share certificates after transfer. Debentures. Non-receipt of letter of offer for rights.
TYPES OF GRIVIANCES
Collective Investment Schemes Mutual Funds/ Venture Capital Funds/ Foreign Venture Capital Investors/ Foreign Institutional Investors/ Portfolio Managers, Custodians. brokers/ securities Lending intermediaries/ merchant bankers/ Registrars and Transfer Agents/ Debenture Trustees/ Bankers to Issue/ Underwriters/ Credit Rating Agencies/ Depository Participants.
TYPES OF GRIVIANCES
Securities Exchanges/ Clearing and Settlement Organizations/ Depositories. Derivative Trading Corporate Governance/ Corporate Restructuring/ Substantial Acquisition and Takeovers/ Buyback / Delisting / Compliance With Listing Conditions.
Listing
It refers to the admission of the security of a public limited company on a recognized stock exchange for trading.
Merits of listing
Liquidity Best prices Regular information. Periodic reports Transferability Income tax benefit Wide publicity
Demerits
Listed Co.s are subjected to various regulatory measures of the stock exchanges and SEBI. Essential information has to be submitted by the listed Co.s to the stock exchanges.
Contd
AGM. Annual reports have to be sent to large number of shareholders. This creates unnecessary expenditures. Public offer itself is an expensive exercise. But this is a pre- requisite for the companys shares to be listed.
Steps of Listing
1.Submission of Letter of Application 2.Payment of Listing Fees Initial Listing Fees Rs.20,000 Annual Listing Fees
(i) Companies with paid-up capital upto Rs. 5 crores Rs. 10,000 (ii) Above Rs. 5 crores and upto Rs. 10 crores Rs. 15,000 (iii) Above Rs. 10 crores and upto Rs. 20 crores Rs. 30,000 Companies which have a paid-up capital of more than Rs. 20 crores will pay additional fee of Rs. 750/- for every increase of Rs. 1 crore or part thereof.
Steps contd
3.Collection of Listing Fees HDFC bank 4. Trading Permission - SEBI 6. Advertisement No adv. of over subscription / any thanking note in news paper
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