Securities and Exchange Board of India (SEBI) – Part 3

Securities and Exchange Board of India

Securities and Exchange Board of India (SEBI) – Part 3

#GS 03 Economics

For Prelims

Securities and Exchange Board of India (SEBI)

  • Securities and Exchange Board of India (SEBI) is a statutory body established on April 12, 1992 as per the provisions of the Securities and Exchange Board of India Act, 1992.
  • SEBI when initially formed in the year 1988 through a resolution of the Government of India it was a non-statutory body for the regulation of the securities market.
  • SEBI has been setup to protect the interests of investors in securities and to promote and regulate the securities market.
  • SEBI has its headquarters setup in Mumbai along with regional offices in Ahmedabad, Kolkata, Chennai and Delhi.

Organisational Structure of SEBI

  • SEBI is an autonomous organization working under the administrative control of the Union Finance Ministry.
  • A Securities Appellate Tribunal (SAT) has been constituted as an appellate body to protect the interest of entities that do not feel satisfied by SEBI’s decision.
  • SAT consists of a Presiding Officer and two other Members and has the same powers as vested in a civil court.
  • Supreme Court acts as the final appellate body for SAT.

Members of SEBI

  • The chairman was 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 where three of the five members should be full-time members.

Source “Why is SEBI not acting to protect retail investors, asks Congress