Securities & Exchange Board of India (SEBI)

Legislation Governing the Capital Market

Companies Act, 1956 Securities Contracts (Regulation) Act 1956 SEBI Act 1992 Depositories Act, 1996

SEBI
Came into existence in April 1988 and set up with statutory powers on Feb. 21, 1992 Objectives Investor protection Promotion and development of the capital market containing risk broad-basing maintaining market integrity promoting long-term investment Five operational departments Primary market policy, Intermediaries, SROs & Investor Grievance & Guidance Department Issue management & intermediaries department Secondary market policy, operations & exchange administration, new investment products & Insider trading department Secondary market policy exchange administration, inspection & non member intermediaries Institutional Investment, m&a, research & publication, international relations Legal department Investigation department

Regulation of Securities Market

Registers and regulates all market intermediaries Conducts inquiries, audits and inspection of all stock exchanges & intermediaries Promotes and regulates self-regulatory organisations Prohibits fraudulent and unfair trade practices Prohibits insider-trading in securities

Supervision of Securities Market

Inspection of stock exchanges Inspection of brokers/sub brokers Inspection of depositories Surveillance Online Surveillance Database Surveillance System Off-line Surveillance Price Bands Scrip wise reduction of price bands Market wide circuit breakers Trade for Trade Rumour Verification Corporate Information Investigations Prosecutions Inspection of mutual funds

Self Regulatory Organisations (SROs)

Make regulations more effective and responsive SEBI has framed the SEBI (Self Regulatory Organisations) Regulations, 2000, which lay down the obligations of SROs

Investor Protection Measures

Redressal of investor grievances Supervision of the allotment process Enlightening investors through advertisements Regulations for collective investment schemes An automated complaints handling system Investor education Instituting an Ombudsman Encourages forming of investors associations

Achievements of SEBI
Reforms in the primary and secondary markets Introduction of computerised trading, depositories, dematerialisation, circuit filters, margins, stock watch, central listing authority, demutualisation and corporatisation of stock exchanges Streamlined and simplified procedures Stringent action against companies and intermediaries Encouraged development of Corporate governance standards Trying to bring down three kinds of risk structural, systematic and operational Criticised on account of scams, ambiguous guidelines, failure to penalise fraudulent companies and absence of the necessary machinery to achieve its objectives

Recent IPO/FPO
Issuer Company Issue Open Issue Close Offer Price(Rs.) Issue Type Issue Size(Crore Rs.)
Brooks Laboratories Ltd IPOAug 16, 2011 Aug 18, 2011 90/- to 100/- IPO-BB 63.00 SRS Limited IPOAug 23, 2011 Aug 26, 2011 IPO-BB L&T Finance Holdings Limited IPOJul 27, 2011 Jul 29, 2011 51/- to 59/- IPO-BB 1,245.00 Bharatiya Global Infomedia Ltd IPOJul 11, 2011 Jul 14, 2011 75/- to 82/- IPO-BB 55.10 Readymade Steel India Ltd IPOJun 27, 2011 Jun 29, 2011 90/- to 108/- IPO-BB 34.75 Multi Commodity Exchange of India Ltd IPOIPO-BB Birla Pacific Medspa Ltd IPOJun 20, 2011 Jun 23, 2011 10/- to 11/- IPO-BB 65.18 VMS Industries Ltd IPOMay 30, 2011 Jun 02, 2011 36/- to 40/- IPO-BB 25.75 Timbor Home Limited IPOMay 30, 2011 Jun 02, 2011 54/- to 63/- IPO-BB 23.25 Oil & Natural Gas Corpn Ltd FPOFPO-BB Steel Authority of India Ltd (SAIL) FPOFPO-BB Galaxy Surfactants Ltd IPOMay 13, 2011 May 19, 2011 325/- to 340/- IPO-BB 0.00 Power Finance Corporation Ltd FPOMay 10, 2011 May 13, 2011 193/- to 203/- FPO-BB 4,578.20 Aanjaneya Lifecare Ltd IPOMay 09, 2011 May 12, 2011 228/- to 240/- IPO-BB 117.00 Sanghvi Forging & Engineering Ltd IPOMay 04, 2011 May 09, 2011 80/- to 85/- IPO-BB 36.90 Vaswani Industries Ltd IPOApr 29, 2011 May 03, 2011 45/- to 49/- IPO-BB 45.00 - 49.00