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Investment Law Presentation

The document discusses the Securities and Exchange Board of India (SEBI) Act of 1992. [1] SEBI was established in 1992 through the SEBI Act to regulate and protect the Indian securities market. [2] The objectives of the SEBI Act are to protect investors, prevent fraudulent practices, develop codes of conduct for financial intermediaries, and maintain a balance of statutory and self-regulation. [3] The SEBI Act defines SEBI's powers and divides the regulations into chapters covering establishment, functions, registration, finances, and other matters relevant to SEBI's operation.

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Nanda Suraj
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28 views11 pages

Investment Law Presentation

The document discusses the Securities and Exchange Board of India (SEBI) Act of 1992. [1] SEBI was established in 1992 through the SEBI Act to regulate and protect the Indian securities market. [2] The objectives of the SEBI Act are to protect investors, prevent fraudulent practices, develop codes of conduct for financial intermediaries, and maintain a balance of statutory and self-regulation. [3] The SEBI Act defines SEBI's powers and divides the regulations into chapters covering establishment, functions, registration, finances, and other matters relevant to SEBI's operation.

Uploaded by

Nanda Suraj
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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INVESTMENT LAW

PRESENTATION

NANDA S NAIR
42
SALIENT FEATURES OF SEBI ACT , 1992
INTRODUCTION

SEBI is also known as the Security and Exchange Board of India


was established on 12 April 1992 through the SEBI Act, 1992. It
was a non-statutory body established to regulate the securities
market. SEBI helps in regulating the Indian Capital Market by
protecting the interest of investors and establishing the rules
and regulations for the development of the capital market.
SEBI - SECURITIES AND EXCHANGE BOARD OF
INDIA

SEBI is essentially a statutory body of the Indian Government


that was established on the 12th of April in 1992. It was
introduced to promote transparency in the Indian investment
market. SEBI controls the issuers of securities, the investors and
the market intermediaries. The Board draft regulations and
statutes under its legislative authority, also pass rulings and
orders under its judicial capacity and operate investigations in its
executive limits. SEBI works as a barrier to avoid malpractices
related to the stock market by establishing a code of conduct and
promoting the healthy functioning of the stock exchange.
SECURITIES AND EXCHANGE BOARD
OF INDIA ACT , 1992

The Parliament established the Securities and Exchange Board


of India Act,1992 or SEBI Act, 1992 to regulate and develop the
securities market in India. It was further amended to meet the
changes in the developing requirements of the securities market.
OBJECTIVES OF SEBI ACT
 Following are some of the objectives of the SEBI Act:

1. Investor Protection: This is one of the most important objectives


of setting up SEBI. It involves protecting the interests of investors by
providing guidance and ensuring that the investment done is safe.

2. Preventing the fraudulent practices and malpractices which are


related to trading and regulation of the activities of the stock
exchange

3. To develop a code of conduct for the financial intermediaries


such as underwriters, brokers, etc.

4. To maintain a balance between statutory regulations and self


regulation.
FEATURES AND SCOPE OF THE ACT

The Preamble of the SEBI Act, 1992 provides that SEBI came into
force to cover two objectives:

 To protect the interests of investors in Securities.


 To promote the development and regulations of the securities
market.
All the provisions and regulations are made to achieve their goal of
improving the market and to reach their goal. SEBI acts like a mini-
state as it works includes executive, judiciary and legislature.
Section 11 of the SEBI Act allows the board to work on its objective.

SEBI Act defines and gives powers to the body. The SEBI Act is
divided into seven chapters that provide the rules and regulations
associated with the capital market.
 The First Chapter is an introductory or preliminary chapter
of the Act which provides the title, extent, and definitions of
the terms used in the Act.

 The Second Chapter is the establishment of the Securities


and Exchange Board of India. This chapter deals with
management, employees, meetings, and the office of the
board. This provides the necessary details of the board
established by this Act.

 The Third Chapter is the transfer of assets, liabilities, etc. of


the existing Security and Exchange Board to the Board,
which means it declares the provisions to be used to transfer
the assets in the case of the formation of a new board.

 The Fourth Chapter is the powers and functions of the


Board. This chapter helps in mentioning the powers and
functions of the board which are given by the Act. The Board
is bound to follow the instructions given by the act and is
 The Fifth Chapter is the Registration Certificate. It deals with
the documentation involved in the registration of the
stockbrokers, sub-brokers, and share transfer agents, etc.

 The Sixth Chapter is finance, accounts, and audits. This


chapter controls all the grants given by the Central
Government, funds and accounts, to ensure the productivity
of the board as well as the capital market.

 The Seventh Chapter miscellaneous, which discusses other


topics that are relevant to the board and the market. To help
the board from avoiding mistakes.
CONCLUSION

It is concluded that stock market is important instrument for


economic growth of the country . Before the establishment of Sebi
people started investing less in stock market as they lost the trust
due to unfair practices in stock market .So to regain the faith of
people in stock markets government took the step for
establishment of SEBI to monitor and supervise the activities of
stock market, initially SEBI has granted less powers but in 1992
when SEBI became the statutory body and legally recognised, its
authorities has been widened.
THANK YOU

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