Stock Exchange and Securities Market

Topics: Stock exchange, Stock market, Stock Pages: 5 (1158 words) Published: March 23, 2009


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 and Southern regional offices in New Delhi, Kolkata and Chennai. It is in the news that a new Western Regional Office has been proposed at Ahmedabad.

Chandrasekhar Bhaskar Bhave is the sixth 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.


Some of the major powers and functions of the Board are as follows:

• protecting the interests of investors in securities and to promote the development of, and to regulate the securities market, by such measures as it thinks fit;

• regulating the business in stock exchanges and any other securities markets; 

• registering and regulating the working 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 such other intermediaries who may be associated with securities markets in any manner;

• registering and regulating the working of the depositories, custodians of securities, foreign institutional investors, credit rating agencies and such other intermediaries as the Board may, by notification, specify in this behalf;

• registering and regulating the working of venture capital funds and collective investment schemes, including mutual funds; promoting and regulating self-regulatory organizations; prohibiting fraudulent and unfair trade practices relating to securities markets; 

• promoting investors' education and training of intermediaries of securities markets; 

• prohibiting insider trading in securities; 

• regulating substantial acquisition of shares and take-over of companies.

The Board shall have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908, while trying a suit, in respect of the following matters, namely: 

(i) the discovery and production of books of account and other documents, at such place and such time as may be specified by the Board; 

(ii) summoning and enforcing the attendance of persons and examining them on oath; 

(iii) inspection of any books, registers and other documents of any person;

(iv) inspection of any book, or register;

(v) issuing commissions for the examination of witnesses or documents.

The Board may, by an order, for reasons to be recorded in writing, in the interests of investors or securities market, take any of the following measures, either pending investigation or inquiry or on completion of such investigation or inquiry, namely:-

(a) suspend the trading of any security in a recognized stock exchange;

(b) restrain persons from accessing the securities market and prohibit any person associated with securities market to buy, sell or deal in securities;

(c) suspend any office-bearer of any stock exchange or self- regulatory organization from holding such position;

(d) impound and retain the proceeds or securities in respect of any transaction which is under investigation;

(e) attach, after passing of an order on an application made for approval by the Judicial Magistrate of the first class having jurisdiction, for a period not exceeding one month, one or more bank account or accounts of any intermediary or any person associated with the securities market in...
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