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{{Short description|Regulatory body for securities in India}}{{Use Indian English|date=July 2015}}
{{Use dmy dates|date=July 2015}}
{{Infobox government agency
| agency_name = Securities and Exchange Board of India
| logo = SEBI logo.svg
| logo_width = 150px
| logo_caption = SEBI Logo
| seal =
| seal_width =
| seal_caption =
| picture = SEBI_Bhavan.jpg
| picture_width = 220px
| picture_caption = [[SEBI]] Bhavan, [[Mumbai]] headquarters
| formed = {{Date and age|1992|01|30}} ({{small|Acquired Statutory Status}})<ref name="About SEI" />
| preceding1 =
| dissolved =
| superseding =
| jurisdiction = [[Ministry of Finance (India) |Ministry of Finance]], [[Government of India]]
| headquarters = [[Mumbai]], [[Maharashtra]]
| employees = 644+(2012)<ref name="sebi.gov.in">http://www.sebi.gov.in/acts/EmployeeDetails.html</ref>
| chief1_name = Ajay Tyagi, [[Indian Administrative Service|IAS]]
| chief1_position = ({{small|Chairman}})
| chief2_name =
| website = {{url|www.sebi.gov.in}}
| footnotes =
| agency_type = [[Regulatory Agency|Regulatory Body]]
| budget =
| chief2_position =
| chief3_name =
| chief3_position =
| chief4_name =
| chief4_position =
| chief5_name =
| chief5_position =
| chief6_name =
| chief6_position =
| chief7_name =
| chief7_position =
| chief8_name =
| chief8_position =
| chief9_name =
| chief9_position =
| parent_department =
}}

The '''Securities and Exchange Board of India''' ('''SEBI''') is the [[Regulatory agency|regulatory body]] for [[securities]] and [[commodity market]] in [[India]] under the [[jurisdiction]] of [[Ministry of Finance (India)|Ministry of Finance]] , [[Government of India]]. It was established on 12 April 1988 and given [[Statutory]] Powers on 30 January 1992 through the [[Securities and Exchange Board of India Act, 1992|SEBI Act, 1992]].<ref name="About SEI">{{cite web|title=About SEBI|url=http://www.sebi.gov.in/sebiweb/stpages/about_sebi.jsp|publisher=SEBI|access-date=26 September 2012|archive-url=https://web.archive.org/web/20101003235606/http://www.sebi.gov.in/sebiweb/stpages/about_sebi.jsp|archive-date=3 October 2010}}</ref>

== History ==
Securities and Exchange Board of India (SEBI) was first established in 1988 as a non-statutory body for regulating the securities market. It became an autonomous body on 30 January 1992 and was accorded statutory powers with the passing of the SEBI Act 1992 by the [[Parliament of India|Indian Parliament]]. SEBI has its headquarters at the business district of [[Bandra Kurla Complex]] in [[Mumbai]] and has Northern, Eastern, Southern and Western Regional Offices in [[New Delhi]], [[Kolkata]], [[Chennai]], and [[Ahmedabad]] respectively. It has opened local offices at [[Jaipur]] and [[Bangalore]] and has also opened offices at [[Guwahati]], [[Bhubaneswar|Bhubaneshwar]], [[Patna]], [[Kochi]] and [[Chandigarh]] in Financial Year 2013–2014.

Controller of Capital Issues was the regulatory authority before SEBI came into existence; it derived authority from the Capital Issues (Control) Act, 1947.

The SEBI is managed by its members, which consists of the following:

* 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.

After the amendment of 1999, collective investment schemes were brought under SEBI except [[Nidhi company|nidhis]], chit funds and cooperatives.

== Organisation structure ==
[[File:Sebi Headquarter.jpg|thumb|450x450px|SEBI headquarters, Mumbai]]
[[Ajay Tyagi]] was appointed chairman on 10 February 2017, replacing [[U K Sinha]],<ref name="C B Bhave's term ended on Feb 2011">[http://www.moneycontrol.com/news/cnbc-tv18-comments/a-rendezvou-cb-bhave%60s-3-years-at-sebi_524022.html A rendezvous: CB Bhave's 3-years at SEBI – CNBC-TV18]. Moneycontrol.com. Retrieved 2013-07-29.</ref> and took charge of the chairman office on 1 March 2017. In February 2020,whose term as chairman of SEBI was extended by another six months.<ref>{{Cite news|last=Upadhyay|first=Jayshree|url=https://www.livemint.com/companies/people/ajay-tyagi-gets-an-extension-of-6-months-as-sebi-chair-11582908811808.html|title=Sebi chief Ajay Tyagi gets 6-month extension|date=28 February 2020|work=Live Mint|access-date=30 March 2020}}</ref>

The board comprises:<ref>{{cite web|url=https://www.sebi.gov.in/sebiweb/boardmember/BoardMemberAction.do?doBoardMember=yes|title=SEBI{{!}}Board Members |format=PDF |access-date=2012-02-28}}</ref>
<ref>{{cite web|url=https://www.sebi.gov.in/sebiweb/boardmember/BoardMemberAction.do?doBoardMember=yes |title=SEBI Board Members}}</ref>
{| class="wikitable"
|-
! Name
! Designation
|-
| Ajay Tyagi
| Chairman
|-
| Gurumoorthy Mahalingam
| Whole time member
|-
|-
| S.K Mohanty
| Whole time member
|-
|-
| Ananta Barua
| Whole time member
|-

|-
| Madhabi Puri Buch
| Whole time member
|-
| N S Vishwanathan
| Part-time member
|-
| Anand Mohan Bajaj
| Part-time member
|-
| K V R Murty
| Part-time member
|-
| V Ravi Anshuman
| Part-time member
|}

List of Chairmen:<ref>{{cite web|url=https://www.sebi.gov.in/sebiweb/boardmember/BoardMemberAction.do?doFormerMember=yes|title=Former Chairmen of SEBI |publisher=SEBI|access-date=19 February 2011}}</ref>
{| class="wikitable"
|-
! Name
! From
! To
|-
|Ajay Tyagi
|10 February 2017
|present
|-
|[[U K Sinha]]
|18 February 2011
|10 February 2017
|-
|[[C. B. Bhave]]
|18 February 2008
|18 February 2011
|-
|[[M. Damodaran]]
|18 February 2005
|18 February 2008
|-
|G. N. Bajpai
|20 February 2002
|18 February 2005
|-
|[[D. R. Mehta]]
|21 February 1995
|20 February 2002
|-
|S. S. Nadkarni
|17 January 1994
|31 January 1995
|-
|G. V. Ramakrishna
|24 August 1990
|17 January 1994
|-
|Dr. S. A. Dave
|12 April 1988
|23 August 1990
|}

== Functions and Responsibilities ==
The Preamble of the Securities and Exchange Board of India describes the basic functions of the Securities and Exchange Board of India as "...to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected there with or incidental there to".

SEBI has to be responsive to the needs of three groups, which constitute the market:
* issuers of securities
* investors
* market intermediaries

SEBI has three powers rolled into one body: [[quasi-legislative]], [[quasi-judicial]] and quasi-executive. It drafts regulations in its legislative capacity, it conducts investigation and enforcement action in its executive function and it passes rulings and orders in its judicial capacity. Though this makes it very powerful, there is an appeal process to create accountability. There is a Securities Appellate Tribunal which is a three-member tribunal and is currently headed by Justice [[Tarun Agarwala]], former Chief Justice of the [[Meghalaya High Court]].<ref>[https://wap.business-standard.com/article/pti-stories/justice-tarun-agarwala-appointed-securities-appellate-tribunal-presiding-officer-118121201035_1.html Justice Tarun Agarwala appointed Securities Appellate Tribunal presiding officer – Business Standard].
''Business Standard''. (2018-12-12). Retrieved 2019-03-24.</ref> A second appeal lies directly to the [[Supreme Court of India|Supreme Court]]. SEBI has taken a very proactive role in streamlining disclosure requirements to international standards.<ref>{{cite web|url=http://barandbench.com/content/212/cyril-shroff-managing-partner-mumbai-national-capital-market-head-amarchand|publisher=barandbench.com/|title=Cyril Shroff Managing Partner Mumbai & National Capital Market head Amarchand}}</ref> [[File:Securities and Exchange Board of India(SEBI).jpg|thumb|Securities and Exchange Board of India (SEBI)]]

=== Functions ===
For the discharge of its functions efficiently, SEBI has been vested with the following powers:
* to approve by−laws of Securities exchanges.
* to require the Securities exchange to amend their by−laws.
* inspect the books of accounts and call for periodical returns from recognised Securities exchanges.
* inspect the books of accounts of financial intermediaries.
* compel certain companies to list their shares in one or more Securities exchanges.
* registration of Brokers and sub-brokers

♦ '''SEBI committees'''

* Technical Advisory Committee
* Committee for review of structure of infrastructure institutions
* Advisory Committee for the SEBI Investor Protection and Education Fund
* Takeover Regulations Advisory Committee
* Primary Market Advisory Committee (PMAC)
* Secondary Market Advisory Committee (SMAC)
* Mutual Fund Advisory Committee
* Corporate Bonds & Securitisation Advisory Committee

♦ There are two '''types''' of brokers:
*Discount brokers
*Merchant brokers

''Eliminate malpractices in security market''

== Major achievements ==

SEBI has enjoyed success as a regulator by pushing systematic reforms aggressively and successively. SEBI is credited for quick movement towards making the markets electronic and paperless by introducing T+5 rolling cycle from July 2001 and T+3 in April 2002 and further to T+2 in April 2003. The rolling cycle of T+2<ref name="Discussion Paper Implementation of T+2 rolling settlement">{{cite web|title=Discussion Paper Implementation of T+2 rolling settlement|url=http://www.sebi.gov.in/commreport/t2.pdf|publisher=SEBI|access-date=25 October 2012}}</ref> means, [[Settlement (finance)|Settlement]] is done in 2 days after [[Trade date]].<ref name="Sebi gets rolling on T+2 settlement schedule">{{cite news|title=Sebi gets rolling on T+2 settlement schedule|url=http://articles.economictimes.indiatimes.com/2003-01-04/news/27546293_1_settlement-cycle-institutional-trades-t-5|access-date=25 October 2012|newspaper=The Economic Times|date=4 January 2003}}</ref> SEBI has been active in setting up the regulations as required under law. SEBI did away with physical certificates that were prone to postal delays, theft and forgery, apart from making the settlement process slow and cumbersome by passing Depositories Act, 1996.<ref>[http://www.livemint.com/Industry/xer1j7wBRbQH1UTOBVrRaL/Sebis-25year-journey.html Sebi’s 25-year journey]. Livemint (2013-05-21). Retrieved 2013-07-29.</ref>

SEBI has also been instrumental in taking quick and effective steps in light of the global meltdown and the Satyam fiasco.{{Citation needed|date=May 2010}} In October 2011, it increased the extent and quantity of disclosures to be made by Indian corporate promoters.<ref name="SEBI makes it mandatory for companies to disclose promoters' shares">{{cite news|title=SEBI makes it mandatory for companies to disclose promoters' shares|url=http://articles.economictimes.indiatimes.com/2011-10-06/news/30250534_1_promoters-pledge-disclosures|access-date=26 October 2012|newspaper=The Economic Times|date=6 October 2011}}</ref> In light of the global meltdown, it liberalised the takeover code to facilitate investments by removing regulatory structures. In one such move, SEBI has increased the application limit for retail investors to ₹ 200,000, from ₹ 100,000 at present.<ref name="sebi">{{cite web|title=Sebi doubles retail limit, tightens IPO norms|url=http://business.rediff.com/report/2010/oct/26/sebi-tightens-ipo-norms.htm|work=Rediff.com|access-date=27 October 2010}}</ref>

== Controversies ==

[[Supreme Court of India]] heard a [[Public Interest Litigation]] (PIL) filed by [[India Rejuvenation Initiative]] that had challenged the procedure for key appointments adopted by [[Govt of India]]. The petition alleged that, "The constitution of the search-cum-selection committee for recommending the name of chairman and every whole-time members of SEBI for appointment has been altered, which directly impacted its balance and could compromise the role of the SEBI as a watchdog."<ref name="Is Sebi’s Autonomy Under Threat?">{{cite news | url=http://forbesindia.com/printcontent/30372 | title=Is Sebi's Autonomy Under Threat? | date=15 November 2011 | access-date=10 April 2012}}</ref><ref name="PIL alleges nexus in Sebi appointments">{{cite news | url=http://timesofindia.indiatimes.com/business/india-business/PIL-alleges-nexus-in-Sebi-appointments/articleshow/10612161.cms | title=PIL alleges nexus in Sebi appointments | date=5 November 2011 | access-date=10 April 2012}}</ref> On 21 November 2011, the court allowed petitioners to withdraw the petition and file a fresh petition pointing out constitutional issues regarding appointments of regulators and their independence. The [[Chief Justice of India]] refused the [[Ministry of Finance (India)|finance ministry's]] request to dismiss the [[Public Interest Litigation|PIL]] and said that the court was well aware of what was going on in SEBI.<ref name="Is Sebi’s Autonomy Under Threat?" /><ref name="SC allows eminent citizens to withdraw petition against SEBI chief's appointment">{{cite news | url=http://www.moneylife.in/article/8/21576.html | title=SC allows eminent citizens to withdraw petition against SEBI chief's appointment | date=21 November 2011 | access-date=10 April 2012}}</ref> Hearing a similar petition filed by Bengaluru-based advocate Anil Kumar Agarwal, a two judge Supreme Court bench of Justice [[Surinder Singh Nijjar]] and Justice [[HL Gokhale]] issued a notice to the Govt of India, SEBI chief [[UK Sinha]] and Omita Paul, Secretary to the President of India.<ref name="Notice to Centre on quo warranto against SEBI chief">{{cite news|title=Notice to Centre on quo warranto against SEBI chief|url=http://www.thehindu.com/news/national/sebi-chief-appointment-under-sc-scrutiny/article3938457.ece|access-date=26 September 2012|newspaper=The Hindu|date=26 September 2012}}</ref><ref name="SC seeks Centre’s reply on PIL on Sebi chairman’s appointment">{{cite news|title=SC seeks Centre's reply on PIL on Sebi chairman's appointment|url=http://www.deccanherald.com/content/281208/sc-seeks-centres-reply-pil.html|access-date=26 September 2012|newspaper=Deccan Herald|date=26 September 2012}}</ref>

Further, it came into light that [[Kandathil Mathew Abraham|Dr. K. M. Abraham]](the then whole time member of SEBI Board) had written to the [[Prime Minister of India|Prime Minister]] about malaise in SEBI. He said, "The regulatory institution is under duress and under severe attack from powerful corporate interests operating concertedly to undermine SEBI". He specifically said that Finance Minister's office, and especially his advisor Omita Paul, were trying to influence many cases before SEBI, including those relating to Sahara Group, Reliance, Bank of Rajasthan and MCX.<ref name="KM Abraham's letter to PM">{{cite web | url=https://www.scribd.com/firstpost/d/70646038-K-M-Abraham-s-Letter-to-PM | title=KM Abraham's letter to PM | publisher=Prime Minister's Office | date=20 October 2011 | access-date=11 April 2012}}</ref><ref name="Pranab-Chidu feud may be revived over Sebi chief PIL">{{cite news | url=http://www.firstpost.com/business/pranab-chidu-feud-may-be-revived-over-sebi-chief-pil-129459.html | title=Pranab-Chidu feud may be revived over Sebi chief PIL | date=12 November 2011 | access-date=11 April 2012}}</ref>

== SEBI and Regional Securities Exchanges ==
SEBI in its circular dated May 30, 2012 gave exit – guidelines for Securities exchanges. This was mainly due to illiquid nature of trade on many of 20+ regional Securities exchanges. It had asked many of these exchanges to either meet the required criteria or take a graceful exit. SEBI's new norms for Securities exchanges mandates that it should have minimum net-worth of Rs. 1 billion and an annual trading of Rs. 10 billion. The Indian Securities market regulator SEBI had given the recognized Securities exchanges two years to comply or exit the business.<ref>{{Cite news|url=http://www.livemint.com/Money/foV0xOfxkv4GSJjQ5z1PUL/15-regional-Securities-exchanges-to-shut-operations-as-Sebi-deadl.html|title=15 regional Securities exchanges to shut operations as Sebi deadline approaches|last=Rukhaiyar|first=Ashish|date=2014-05-20|work=livemint.com/|access-date=2017-05-15}}</ref>

=== Process of de-recognition and exit ===
Following is an excerpts from the circular:<ref>{{Cite web|url=http://webcache.googleusercontent.com/search?q=cache:2wyYsNw3sTYJ:www.bseindia.com/download/investors/Exit_Policy_for_De-recognized_Non-operational_Securities_Exchanges.pdf+&cd=1&hl=en&ct=clnk&gl=in|title=笺憷︺汨俱广沏洇慵泐沅︺ '沣趵沅蹄沅躲姐俱恒泷∶|last=1149|website=webcache.googleusercontent.com|access-date=2017-05-15}}</ref>

1.Exchanges may seek exit through voluntary surrender of recognition.

2.Securities where the annual trading turnover on its own platform is less than Rs 10 billion can apply to SEBI for voluntary surrender of recognition and exit, at any time before the expiry of two years from the date of issuance of this Circular.

3.If the Securities exchange is not able to achieve the prescribed turnover of Rs 10 billion on continuous basis or does not apply for voluntary surrender of recognition and exit before the expiry of two years from the date of this Circular, SEBI shall proceed with compulsory de-recognition and exit of such Securities exchanges, in terms of the conditions as may be specified by SEBI.

4.Securities Exchanges which are already de-recognised as on date, shall make an application for exit within two months from the date of this circular. Upon failure to do so, the de-recognised exchange shall be subject to compulsory exit process.

== SEBI departments ==
SEBI regulates Indian financial market through its 20 departments.<ref>https://fundsbase.com/sebi-departments/</ref>

* Commodity Derivatives Market Regulation Department (CDMRD)
* Corporation Finance Department (CFD)
* Department of Economic and Policy Analysis (DEPA)
* Department of Debt and Hybrid Securities (DDHS)
* Enforcement Department – 1 (EFD1)
* Enforcement Department – 2 (EFD2)
* Enquiries and Adjudication Department (EAD)
* General Services Department (GSD)
* Human Resources Department (HRDM)
* Information Technology Department (ITD)
* Integrated Surveillance Department (ISD)
* Investigations Department (IVD)
* Investment Management Department (IMD)
* Legal Affairs Department (LAD)
* Market Intermediaries Regulation and Supervision Department (MIRSD)
* Market Regulation Department (MRD)
* Office of International Affairs (OIA)
* Office of Investor Assistance and Education (OIAE)
* Office of the chairman (OCH)
* Regional offices (ROs)

== See also ==
* [[Forward Markets Commission (India)]]
* [[Securities commission]]
* [[Financial regulation]]
* [[List of financial regulatory authorities by country]]
* [[Securities exchange]]
* [[Regulation D (SEC)]]
* [[Institute of Chartered Accountants of India]]
* [[Institute of Company Secretaries of India]]
* [[List of stock exchanges in the Commonwealth of Nations]]

== References ==
{{reflist}}
* [http://huconsultancy.com/analysis-of-sebi-regulation-31-31a/ Analysis of SEBI Regulation 31 & 31A]

== External links ==
{{Commons category|Securities and Exchange Board of India}}
* [http://www.sebi.gov.in/ Securities and Exchange Board of India]
* [https://www.sebi.gov.in/sebiweb/home/HomeAction.do?doListing=yes&sid=1&ssid=7&smid=0 SEBI Latest Circulars]
* [https://www.sebi.gov.in/sebiweb/home/HomeAction.do?doListing=yes&sid=4&ssid=80&smid=101 SEBI Annual Reports]
{{Financial services in India}}{{authority control}}

[[Category:Securities and Exchange Board of India| ]]
[[Category:Executive branch of the government of India]]
[[Category:Regulatory agencies of India]]
[[Category:Organisations based in Mumbai]]
[[Category:Financial regulatory authorities of India|India]]
[[Category:Government agencies established in 1992]]
[[Category:Government agencies of India]]
[[Category:Economic history of India (1947–present)]]
[[Category:Financial services companies based in Mumbai]]
[[Category:1988 establishments in Maharashtra]]

Securities and Exchange Board of India - Revision history

MarkObd354: updated page

2409:4063:2110:C6E0:0:0:6C:38A0 at 01:19, 13 August 2021