SEBI_Related_rules and regulations Laws_Presentation.pptx

Sebi

1. Securities and Exchange Board of India (SEBI) – Related Laws Comprehensive Overview for Presentation Use Covers Acts, Regulations, and Rules

2. Introduction to SEBI • Established under SEBI Act, 1992 • Regulates securities market in India • Objective: Protect investors’ interests, promote market development, ensure fair practices

3. Objectives of SEBI • Protect interests of investors • Promote and regulate securities markets • Prohibit unfair trade practices • Maintain transparency and efficiency

4. Structure of SEBI • Chairman and members appointed by Central Government • Head Office: Mumbai • Regional offices in New Delhi, Kolkata, Chennai, and Ahmedabad

5. SEBI Act, 1992 – Overview • Main legislation governing SEBI • Empowers SEBI to regulate and oversee securities market • Provides for registration and regulation of intermediaries

6. Functions of SEBI (Section 11) • Regulating stock exchanges and intermediaries • Promoting investor education • Prohibiting insider trading and unfair trade practices • Conducting inquiries and audits

7. Powers of SEBI (Section 11B, 11C) • Issue directions to intermediaries and companies • Conduct investigation and inspection • Suspend or cancel registration • Levy penalties for violations

8. Penalties under SEBI Act (Chapter VIA) • Penalties for failure to furnish information, insider trading, fraudulent practices • Adjudication by SEBI-appointed officer • Appeal lies before Securities Appellate Tribunal (SAT)

9. Securities Contracts (Regulation) Act, 1956 – Overview • Regulates trading in securities and derivatives • Recognition of stock exchanges • Prohibition of unrecognized trading • Empowers SEBI to supervise exchanges

10. Depositories Act, 1996 – Overview • Enables dematerialization of securities • Establishes framework for depositories (NSDL, CDSL) • Ensures transfer and maintenance of ownership records electronically

11. SEBI (Prohibition of Insider Trading) Regulations, 2015 • Prevents misuse of unpublished price-sensitive information (UPSI) • Defines insider, connected person, UPSI • Mandates disclosures by directors and employees

12. SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003 • Prohibits market manipulation and fraud • Covers misleading statements, price rigging • Empowers SEBI to investigate and penalize violators

13. SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 • Governs acquisition and control in listed companies • Mandatory open offer beyond 25% acquisition • Ensures transparency and fairness for shareholders

14. SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 • Standardizes listing norms across exchanges • Mandates periodic disclosures by listed entities • Strengthens corporate governance framework

15. SEBI (Depositories and Participants) Regulations, 2018 • Regulates functioning of depositories and participants • Ensures investor protection and record integrity • Provides norms for registration and governance

16. SEBI (Stock Exchanges and Clearing Corporations) Regulations, 2018 • Regulates infrastructure institutions like stock exchanges • Ensures financial stability and risk management • Mandates corporate governance norms

17. SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995 • Lays down procedure for inquiries, notices, hearings • Ensures fair opportunity before penalty imposition • Appeals lie to SAT

18. Securities Appellate Tribunal (Procedure) Rules, 2000 • Deals with filing, hearing, and disposal of appeals • Composition: Presiding Officer + Members • Decisions appealable to Supreme Court

19. Investor Protection Measures by SEBI • Investor Protection Fund (IPF) • SCORES platform for grievances • Investor education and awareness programs

20. Recent Developments under SEBI • Implementation of T+1 settlement • Strengthening ESG disclosures • Introduction of Social Stock Exchange framework

21. Corporate Governance Initiatives • Mandatory independent directors • Whistleblower policy • Disclosure of related party transactions

22. Role of SEBI in Market Regulation • Regulates intermediaries – brokers, merchant bankers, mutual funds • Supervises credit rating agencies and depositories • Ensures fair and transparent trading

23. Enforcement and Investigation Powers • SEBI can summon, inspect, and seize documents • Can freeze accounts during investigation • Power to order disgorgement of unlawful gains

24. Coordination with Other Regulators • Coordination with RBI, IRDAI, PFRDA, and Ministry of Finance • Member of Financial Stability and Development Council (FSDC)

25. Key Challenges and Way Forward • Adapting to new instruments (cryptos, fintech) • Ensuring compliance in a tech-driven market • Enhancing investor confidence and transparency

26. Conclusion • SEBI plays a pivotal role in ensuring fair market practices • Continuous reforms for investor protection and innovation • Vital for stability and growth of Indian financial markets