SEBI GUIDELINES

Kuniyorath Hishad George Sanate Mohit Kanodia Mohammed Anas Femeesh Rahees

INTRODUCTION
It was established through an executive resolution in 1988
It was upgraded as a statutory board in 1992

SEBI Act was passed on 30th Jan 1992

SEBI
The Securities and Exchange Board of India (SEBI) has been mandated to protect the interests of investors in securities and to promote the development of and to regulate the securities market so as to establish a dynamic and efficient Securities Market contributing to Indian Economy

 SEBI strongly believes that investors are the backbone of the securities market. They not only determine the level of activity in the

securities market but also the level of activity in the economy Many investors may not possess adequate expertise/knowledge to take informed investment decisions. Some of them may not be aware of the complete risk-return profile of the different investment options

ESTABLISHMENT OF SEBI
The Securities and Exchange Board of India was established on April 12, 1992 in accordance with the provisions of the

Securities and Exchange Board of India Act, 1992

Workshops
The workshops are aimed at reaching out to the common investors and are being held primarily in small and medium towns and

cities all over the country. At these workshops, the aim is to acclimatize the investors with the functioning of the securities market, the basic fundamentals of investment and risk management and their rights and responsibilities. You can attend the workshops in your city/town.

OBJECTIVES
To protect the interest of investors in securities
To promote the development of Securities

Market To regulate the securities market For matters connected therewith or incidental thereto

ACHIEVEMENTS
The improvement in the securities market reduced the risk of credit
It has also framed many policies which has

made dealing in securities both safe and transparent to the end investors It also framed different policies for different intermediaries It also approved the trading in stock indices in 2000

GUIDELINES ON IPO THROUGH THE STOCK EXCHANGE

The company shall enter into an agreement with the Stock Exchange(s) which have the requisite system of on-line offer of securities Agreement with the Stock exchange
The agreement may also provide for a

dispute resolution mechanism between the company and the stock exchange

Guidelines for Preferential Issues

The explanatory statement to the notice for the general meeting in terms of section 173 of the Companies Act, 1956 shall contain - the object/s of the issue through preferential offer, intention of promoters/ directors/ key management persons to subscribe to the offer, shareholding pattern before and after the offer, proposed time within which the allotment shall be complete the identity of the proposed allottees and the percentage of post preferential issue capital that may be held by them.

APPOINTMENT OF BROKERS
The stock exchange, shall appoint brokers of the exchange, who are registered with SEBI, for the purpose of accepting applications and

placing orders with the company The brokers, so appointed accepting applications and application monies, shall be considered as collection centres

 The broker/s so appointed, shall collect the money from his/their client for every order placed by him/them and in case the client

fails to pay for shares allocated as per the Guidelines, the broker shall pay such amount The company/lead manager shall ensure that the brokers having terminals are appointed in compliance with the requirement of necessities

GUIDELINES ON ADVERTISEMENT
The Lead Merchant Banker shall ensure

compliance with the guidelines on Advertisement by the issuer company An issue advertisement shall be truthful, fair and clear and shall not contain any statement which is untrue or misleading Any advertisement reproducing or purporting to reproduce any information contained in a offer document shall reproduce such information in full and disclose all relevant facts and not be restricted to select extracts relating to that item

 An advertisement shall be set forth in a clear, concise and understandable language

Extensive use of technical, legal terminology

or complex language and the inclusion of excessive details which may distract the investor, shall be avoided An issue advertisement shall not contain statements which promise or guarantee rapid increase in profits

 An issue advertisement shall not contain any

information that is not contained in the offer document No models, celebrities, fictional characters, landmarks or caricatures or the likes shall be displayed on or form part of the offer documents or issue advertisements No issue advertisement shall be released without giving Risk Factors in respect of the concerned issue

FACTORS WHICH CONSIDERS AN AD TO BE MISLEADING

Statements made about the performance or activities of the company in the absence of necessary explanatory or qualifying

statements, which may give an exaggerated picture of the performance or activities, than what it really is An inaccurate portrayal of past performance or its portrayal in a manner which implies that past gains or income will be repeated in the future

OPERATIONAL GUIDELINES
Submission of draft and final offer document: The offer documents of size upto Rs. 20 crores shall be filed by lead merchant bankers with the concerned regional office of Board underthe jurisdiction of which the registered office of the issuer company falls The lead merchant banker shall make ten (10) copies of the draft offer document available to the dealing office of the Board, three (3)copies to the Primary Market Department, SEBI, Head Office and 25 copies to the stock exchange's where the issue is proposed to be listed

ELIGIBILITY NORMS FOR COMPANIES ISSUING SECURITIES

Filing of offer document No issuer company shall make any public issue of securities, unless a draft Prospectus has been filed with the Board through a Merchant Banker, at least 30 days prior to the filing of the Prospectus with the Registrar of Companies (ROC)

CONCLUSION
SEBI is a backbone of our nation in its way to development. It has become a guideline for life to many of the people.