|
The Securities and
Exchange Board of India Act, 1992 is having retrospective effect and is
deemed to have come into force on January 30, 1992. Relatively a brief
act containing 35 sections, the SEBI Act governs all the Stock Exchanges
and the Securities Transactions in India.
A Board by the name of the Securities and Exchange Board of India
(SEBI) was constituted under the SEBI Act to amminister its provisions.
It consists of one Chairman and five members.
One each from the department of Finance and Law of the Central
Government, one from the Reserve Bank of India and two other persons and
having its head office in Bombay and regional offices in Delhi, Calcutta
and Madras.
The Central Government reserves the right to terminate the services of
the Chairman or any member of the Board. The Board decides questions in
the meeting by majority vote with the Chairman having a second or
casting vote.
Section 11 of the SEBI Act provides that to protect the interest of
investors in securities and to promote the development of and to
regulate the securities market by such measures, it is the duty of the
Board. It has given power to the Board to regulate the business in Stock
Exchanges, register and regulate the working of stock brokers,
sub-brokers, share transfer agents, bankers to an issue, trustees of
trust deeds, registrars to an issue, merchant bankers, underwriters,
portfolio managers, investment advisers, etc., also to register and
regulate the working of collective investment schemes including mutual
funds, to prohibit fraudulent and unfair trade practices and insider
trading, to regulate take-overs, to conduct enquiries and audits of the
stock exchanges, etc.
All the stock brokers, sub-brokers, share transfer agents, bankers to
an issue, trustees of trust deed, registrars to an issue, merchant
bankers, underwriters, portfolio managers, investment advisers and such
other intermediary who may be associated with the Securities Markets are
to register with the Board under the provisions of the Act, under
Section 12 of the Sebi Act. The Board has the power to suspend or cancel
such registration. The Board is bound by the directions vested by the
Central Government from time to time on questions of policy and the
Central Government reserves the right to supersede the Board. The Board
is also obliged to submit a report to the Central Government each year,
giving true and full account of its activities, policies and programmes.
Any one of the aggrieved by the Board's decision is entitled to appeal
to the Central Government.
|
