SEBI Securities
SEBI is the Securities and Exchange Board of India. It was established on 12th April 1988, but it was given its whole powers through an act of the parliament on 30th January 1992, when the SEBI Act, 1992 was passed in the parliament. It is a regulatory body that sees over the securities and commodities market of the country.
The Board has its headquarters located in Bandra Kurla Complex, Mumbai. The Board has 4 other regional offices as well which are located in different parts of the country. The regional offices are divided into different parts which are Northern, Southern, Western, and Eastern regions with the offices being set up in New Delhi, Kolkata, Ahmedabad, and Kolkata, while the board has opened some of the local offices all over the country which includes the offices at Jaipur, Bangalore, Guwahati, Bhubaneshwar, Patna, Kochi, and Chandigarh.
SEBI is managed by its members who include the following members appointed –
- The Chairman of SEBI is nominated by Union Government.
- The other two members are there – which are officers from the Union Finance Ministry.
- One member is from the Reserve Bank of India.
- The remaining five members are nominated by the Union Government of India, out of which three members appointed must be working the whole time.
Chairman
The 1st chairman of the organization had been Dr. S. A. Dave. Recently, the chairman of the organization has been changed. The recent chairman was Ajay Tyagi, who was appointed on 10th February 2017 and left the post on 28th February 2022. The new chairman is the 1st woman, so it can be called as Chairwoman and she is Madhabi Puri Buch. The other whole-time members include S.K Mohanty and Ananta Barua.
The parent department of the organization is the Ministry of Finance, Government of India. The Preamble of the SEBI describes the basic functions of them as, they want to protect the interest of the investors in the securities market and they also have to power to regulate and development of the people working in the securities market, and they are the authority to be reported in any incidents happen in relation to the securities market.
SEBI is managed by its members who include the following members appointed –
- The Chairman of SEBI is nominated by Union Government.
- The other two members are there – which are officers from the Union Finance Ministry.
- One member is from the Reserve Bank of India.
- The remaining five members are nominated by the Union Government of India, out of which three members appointed must be working the whole time.
There are various departments in SEBI which include –
- Corporation Finance Department
- Corporation Finance Investigation Department
- Department Economic and Policy Analysis
- Department of Debt and Hybrid Securities
- Enforcement Department – 1 & 2
- Enquiries and Adjudication Department
- General Services Department
- Recovery and Refund department
- Human Resources Department
- Division of Foreign Portfolio Investors & Custodians
- Integrated Surveillance Department
- Investigations Department
- Investment Management Department
- Legal Affairs Department
- Market Intermediaries Regulation and Supervision Department
- Market Regulation Department
- Office of International Affairs
- Office of Investor Assistance and Education
- Office of the Chairman
- Regional Offices
- Vigilance Department
There are various committees in the SEBI Board which include –
- Alternative Investment Policy Advisory Committee (AIPAC)
- Advisory Committee for SEBI Investor Protection and Education Fund (IPEF)
- High Powered Advisory Committee on settlement orders and compounding of offenses
- Market Data Advisory Committee (MDAC)
- Corporate Bonds and Securitization Advisory Committee (CoBoSAC)
- Risk Management Review Committee (RMRC)
- Committee on Corporate Governance
- Mutual Fund Advisory Committee
- Corporate Bonds & Securitisation Advisory Committee
- Primary Market Advisory Committee (PMAC)
- Secondary Market Advisory Committee (SMAC)
- Secondary Market Advisory Committee (SMAC) and there are other committees as well, which help the board in the functioning of the organization.
The powers and functions of the board are defined in the Securities and Exchange Board of India Act, 1992 [As amended by the Securities Law (Amendment) Act, 2014]. The powers and functions are defined in Chapter 4 of the Act, which talks about the powers and functions and the sections in which it is defined is Section 11. The Act has total of 35 sections, in which these sections provides for all the sections related to the act, including the jurisdiction, penalty, offences, establishment of the tribunals of Securities Exchange and Procedure of Appellate Tribunal as well.
Filing up a complaint can be done through the online medium of the application as investors can file complaint to the board via the online portal provided by them which is called SCORES which stand for SEBI Complaints Redress System Register Complaints Online. A person can file their complaint on the website and can also see the complaint status of how the complaint has been gone through. And a toll-free helpline is also provided on the website.
SEBI has been pushing in systematic reforms aggressively and systematically. They are looking towards making the market electronic and paperless. At the beginning of online trading, the rolling cycle for the trades was T+5 days from July 2001, in April 2002, it was changed to T+3 days and to T+2 days in April 2003. Rolling Cycle means the settlement period, which means the shares are transferred from the market or seller to the buyer.
SEBI is looking for changing the rolling cycle, from T+2 days to T+1 days which is a good idea for them, as it will help the traders in trading who want to do short term investing or sell the stocks within two days of purchasing as the intraday stocks takes currently takes about 2 days to be transferred to the purchaser account, as the intraday trading is for the day and cannot be carried forward to next day.
If the T+1 days become available, then the shares will be transferred on the next day and could be sold back on the third day of purchasing, currently, the stocks are transferred on the third day and can be sold on the fourth day.
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