What is the Full Form of SEBI?

Headline - What is the Full Form of SEBI?

The Securities and Exchange Board of India (SEBI) is the regulator of the stock and commodity markets in India and is owned by the Ministry of Finance within the Government of India. It was incorporated as an executive body on April 12, 1988 and was given statutory powers on January 30, 1992 by the SEBI Act 1992.

The Securities and Exchange Board of India (SEBI) was first established in 1988 as a non-governmental body to regulate the stock market. It became an autonomous body on 30 January 1992 and was given statutory powers with the passage of the SEBI Act 1992 by the Indian Parliament.

Headquartered in the Bandra Kurla Complex business district in Mumbai, SEBI has regional offices in North, East, South and West in New Delhi, Kolkata, Chennai and Ahmedabad. It has opened local offices in Jaipur and Bangalore and also opened offices in Guwahati, Bhubaneshwar, Patna, Kochi and Chandigarh in FY 2013-2014.

The Controller of Capital Issues was the regulatory body before SEBI was formed; it derived its authority from the Capital Issues (Control) Act 1947.

SEBI is managed by its members, composed as follows:

The President is appointed by the Union Government of India.

Two members, ie officials from the Union Treasury.

A member of the Reserve Bank of India.

The remaining five members will be appointed by the Union Government of India, of which at least three will be full-time members.

Following the 1999 amendment, collective investment schemes other than Nidhis, Chit Funds and Cooperatives became part of SEBI.

Madhabi Puri Buch took office as President on March 1, 2022, replacing Ajay Tyagi, whose term expired on February 28, 2022. Madhabi Puri Buch is the first female President of SEBI

Roles and Responsibilities

The Preamble of the Securities and Exchange Board of India describes the core functions of the Securities and Exchange Board of India as "...protecting the interests of investors in securities and promoting the development and regulation of the securities market and for matters related or ancillary there".

SEBI must respond to the needs of three groups that make up the market:

issuers of securities

investors

market agent

SEBI has three powers in one body: quasi-legislative, quasi-judicial and quasi-executive. He drafts regulations in his capacity as legislator, conducts investigations and enforcement measures in his capacity as executive, and issues judgments and orders in his capacity as judge.

While this makes it very powerful, there is an appeals process to build accountability. There is a Securities Appeal Court, which consists of three members and is currently headed by Justice Tarun Agarwala, the former Chief Justice of Meghalaya. A second complaint lies directly with the Supreme Court. SEBI has taken a very proactive role in streamlining disclosure requirements to international standards.