SEBI Meaning Full Details | SEBI Full Form, Functions, Headquarters: Friends, whenever we work in the stock market, we often hear the name of SEBI. So in today’s article What is SEBI? Sebi Meaning Full Details,
we will try to understand SEBI and know what SEBI is, how it works, as well as about the appointment rights and powers of its Chairman. Let us know in detail. In This Article You Know all About SEBI.
SEBI Meaning Full Details
The regulator of the stock market in India is the Securities and Exchange Board of India, which we know as SEBI Full Form is Securities and Exchange Board of India. Its basic objective is to protect the interests of investors/traders investing/trading in securities.
Securities And Exchange Board of India – Why Was SEBI Needed?
Be it an investor or a trader in the stock market, everyone wants to earn profit in some way or the other from the stock market. And in this effort to earn profits, many scams have also been coming to light in the stock market.
Among these scams, a big name is Harshad Mehta scam, after which the government came into action and SEBI was given statutory status on April 12, 1992 as per the provisions of the Securities and Exchange Board of India Act, 1992.
Establishment Of SEBI
SEBI was established on April 12, 1988, but it did not have sufficient powers to regulate the Indian securities market, and it also did not have any statutory status. Based on the recommendations of the Narasimham Committee,
as per the provisions of the Securities and Exchange Board of India Act-1992, on 12 April 1992, SEBI was given statutory status and its powers were expanded, so that it could monitor and regulate the Indian securities market.
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Appointment of SEBI Chairman
The Chairman of SEBI is nominated/appointed by the Central Government. Presently Ms. Madhabi Puri is the Chairperson of SEBI. Ms. Madhabi Puri Buch is the first woman Chairman of SEBI.
After the tenure of former President Ajay Tyagi ended on 28 February 2023, Ms. Madhabi Puri Buch assumed her post. The first chairman of SEBI was Dr. S. A. Dave (dr. S. A. Dave), whose tenure was from April 12, 1988 to August 23, 1990.
Tenure Of SEBI Chairman
The tenure of the Chairman of SEBI was for 5 years or 65 years, whichever was earlier. But by the present government the tenure of the Chairman has been reduced from 5 years to 3 years. The current Chairperson of SEBI, Ms. Madhabi Puri Buch, has been appointed Chairperson for the next 3 years.
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Structure Of SEBI
SEBI is mainly a team of 9 people which includes a Chairman nominated by the Central Government, two members nominated by the Union Finance Ministry, one member nominated by the Central Reserve Bank and 5 members nominated by the Central Government.
At present the following persons are on the board of SEBI
- Ms. Madhabi Puri Buch (Chairman)
- Shri S. Of. Mohanty (whole time member)
- Shri Anant Barua(Whole Time Member)
- Shri Ashwani Bhatia(Whole Time Member)
- Shri Ananth Narayan Gopalakrishnan(Whole Time Member)
- Shri Ajay Seth (Part-Time Member)
- Dr. Manoj Govil (Part-Time Member)
- Shri M. Rajeswara Rao (Part-Time Member)
- Dr. V Ravi Anshuman(Part-Time Member)
SEBI Headquarters
The headquarters of SEBI is located in Bandra Kurla Complex, Mumbai. Its other regional offices are also located in other cities including New Delhi, Kolkata, Ahmedabad, Jaipur, Bengaluru.
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Powers Of SEBI
Investors and traders come to the Indian capital market with the intention of earning maximum profits. But cases of fraud keep coming to light in the stock market every day. The powers related to regulating it can be understood in the following three ways.
- Quasi Legislative Powers
With these powers, SEBI can prepare rules and regulations for the protection of intermediaries or investors like you.
- Quasi Executive Powers
SEBI can use these powers to inspect the documents and accounts of the parties in any suspicious case. This power allows a case to be filed against anyone who violates SEBI rules and regulations.
- Quasi Judicial Powers
When there is any fraudulent or unethical trading activity in the market, which is considered illegal by the SEBI law, this power gives SEBI the right to hear and pass judgment.
Major Functions Of SEBI
The basic function of SEBI is to protect the interests of investors in Indian securities and to promote the securities market. Apart from this, SEBI has the following functions: –
- No entity participating in the stock market should commit any wrongdoing.
- Stock brokers and sub-brokers work under the rules.
- Companies should not use the stock market for their own benefit.
- The interests of small and big investors/retail should be protected.
- Stock exchanges should do their work properly.
What is SEBI Official Website?
SEBI Offcial Website is sebi.gov.in