It meets the needs of the following three groups:Issuers it provides a fair market place of the issuers so that they

y could raise finance

more easily and fairly. Issuers include the companies that make some part of their
shares available for the public purchase in order to get the money to foster their
business growth.
Investors- it provides up to date information to the people who are investing in the stock
market. Protection of rights and interest of the investors is also the main concern of
SEBI.
Intermediates- it boosts up the feeling of competition between the intermediates. The
intermediates involve brokers who help in the buy and sale of stocks.
The mission and objectives of SEBI are
-To regulate the activities that is involved in stock exchange.
-To protect investors rights and to ensure safety on their investment.
-To prevent the frauds and malpractices that tend to happen in the exchange of stocks.
-To develop the code of conduct for the intermediates and to check whether the code of
conduct is prop

As the objectives are difficult to achieve SEBI performs various functions in order to
achieve the above mentioned functions and these functions could be divided into three
categories which are:
1. Protective functions

2. Development functions
3. Regulatory functions

PROTECTIVE FUNCTIONS These functions are basically performed by SEBI to protect

the rights and the interest of the investors. For this SEBI keeps a check on price rigging
which is basically manipulating the prices in the market, this practice could fraud and
cheat the investors. SEBI aims at maintain a balance in the market prices.
SEBI prohibits insider trading. Insider is a person who works in a company or firm and
has the crucial information about the prices of the security market and if they use this
information for the aim to make profit then this is known as insider trading. Therefore
using the information to mint money is against the rights of other investors. Therefore
SEBI keeps a strict check on insider trading.
SEBI takes all the necessary steps to educate investors so that they can have all the
necessary information to evaluate various companies and to select the one which would
provide them highest benefits.
DEVELOPMENT FUNCTIONS
These functions are adopted with the aim to promote the business growth and
exchange practices in the stock market. For the aim to be achieved SEBI promotes the
training activities of the brokers who are involved in facilitating the exchange.
SEBI has introduced various flexible approaches to promote stock exchange practices.
These approaches include internet trading through registered stock brokers.
Underwriting is made optional is order to reduce the cost of issue.

REGULATORY FUNCTIONS
As the name suggests these functions are performed to regulate the business activities
in the stock market. To regulate the business activities SEBI has taken many steps. It
has created certain rules and regulation and also a code of conduct which is to be
followed by every intermediate. It holds the right to regulate the working of brokers,
share transfer agents, merchant bankers. It also register and regulate the working of
mutual funds, the takeover of companies is also regulated by the organisation.

A chairperson, two members one from ministry of central government and one from
administration of company act , one member from the official of Reserve Bank of India
and five members which are appointed by the central government together fills the
organisational structure of SEBI.
All the members of SEBI do the hard work to make the stock market a fair place for all.
Objectives of SEBI:
The overall objectives of SEBI are to protect the interest of investors and to promote the
development of stock exchange and to regulate the activities of stock market. The
objectives of SEBI are:
1. To regulate the activities of stock exchange.
2. To protect the rights of investors and ensuring safety to their investment.
3. To prevent fraudulent and malpractices by having balance between self regulation of
business and its statutory regulations.
4. To regulate and develop a code of conduct for intermediaries such as brokers,
underwriters, etc.
To promote orderly and healthy growth of the securities market in India.
(2) To protect the rights and interests of investors through necessary regulations.
(3) To create proper market environment for orderly functioning of securities
market.
(4) To regulate operations of financial intermediaries such as brokers, underwriters,
portfolio managers and mutual funds. In addition, to promote professionalism
among
the intermediaries.
(5) To create healthy market environment so as to enable companies (issuers of
capital)
to raise adequate funds for their business through the sale of securities (shares,

debentures and bonds).

(6) To provide suitable education and guidance to investors so as to enable them to
protect their interest.
In short, SEBI is for the protection of investors, regulation of stock exchanges and
financial intermediaries and healthy growth of capital market in India.

Organisation and Management:

SEBI is managed by six members .sEBI is managed by six membersone
chairman (nominated by Central Government), two members, (officers of
Central Ministries), one member (from RBI) and remaining two members are
nominated by Central Government. The office of SEBI is situated at Mumbai
with its regional offices at Kolkata, Delhi and Chennai.Government. The
office of SEBI is situated at Mumbai with its regional offices at Kolkata, Delhi
and Chennai.
In 1988 the initial capital of SEBI was Rs. 7.5 crore which was provided by its
promoters (IDBI, ICICI, and IECI). This amount was invested and with its
interest amount, the day-to-day expenses of SEBI are managed. All statutory
power for regulating Indian Capital Market are vested with SEBI itself.
Investment process

Before investing, investment management should be done. Investment Management is

a five step process. Following are the 5 steps of investment management:1- Setting the Investment Objectives:The first and the basic step for investment is that the investor should set his
investment objectives. These investment objectives vary from person to person. For
example for an individual the objective may be to optimize the rate of return.
2- Establishing Investment Policy:-

Establishing investment policy refers to the allocation of asset amongst the major
allocated assets in the capital market. The range of allocated asset is from equities,
debt, fixed income securities, real estate, foreign securities to currencies. Restraint of
environment and that of investor should be kept in mind while establishing the
investment policy.
3- Selecting the Portfolio Strategy:The portfolio strategy selected should be in accordance and in conformity with the
investment objectives and investment policies. If these are not in accordance with
each other then the whole investment management process will collapse.
4- Selecting the Assets:The assets to be placed in the portfolio have to be selected by the investor. This is the
point where real creation of portfolio will take place after the selection of assets in
which to invest by the manager or investor. That asset will be selected which will give
best return in available resources and which involves lowest risk. The assets can be
shares, stocks, art objects, securities, gold, property etc.
5- Measuring and Evaluating Performance:In this step the performance of the portfolio will be measured in comparison to the
realistic benchmark or the standard set by the investor. Risk and return will be
evaluated by the manager. Measuring and evaluating the portfolio will give the
feedback to the investor and will in turn help the investor to improve the quality as
well as the performance of the portfolio of investment.