Securities and Exchange Board of India - Chanakya Mandal Pariwar

Securities and Exchange Board of India

Context

  • Recently, SC has called for SEBI response over Adani stock fall.

About

  • It is the regulatory body for securities and commodity markets in India.
  • It comes under the ownership of the Ministry of Finance.
  • Establishment Of SEBI ➔ Securities and Exchange Board of India was constituted as a non-statutory body or executive body on April 12, 1988 through a resolution of the Government of India.
  • It was established as a statutory body in the year 1992 and the provisions of the Securities and Exchange Board of India Act, 1992 came into force on January 30, 1992.
  • SEBI regulates the Indian financial market through its 20 departments.
  • SEBI is a quasi-legislative and quasi-judicial body which can draft regulations, conduct inquiries, pass rulings and impose penalties.
  • Headquarters ➔ Mumbai, Maharashtra.
  • Basic functions ➔
  • to protect the interests of investors in securities and
  • to promote the development of and to regulate the securities market and for matters connected to it.
  • Appeal Process ➔
  • Though SEBI is powerful, there is an appeal process to create accountability.
  • There is a Securities Appellate Tribunal which is a three-member tribunal
  • A second appeal lies directly to the Supreme Court.
  • Composition ➔
  • The chairman is nominated by the Union Government of India.
  • Two members, i.e Officers from the Union Finance Ministry.
  • One member from the Reserve Bank of India.
  • The remaining five members are nominated by the Union Government of India, out of them at least three shall be whole-time members.
  • Note ➔ Madhabi Puri Buch is the first woman chairperson of SEBI.
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