Page 231 - DCOM510_FINANCIAL_DERIVATIVES

Financial Derivatives

Notes The Chairman and the other members are from amongst the persons of ability, integrity and
standing who have shown capacity in dealing with problems relating to securities market or have
special knowledge or experience of law, finance, economics, accountancy, administration or in
any other discipline which, in the opinion of the Central Government, shall be useful to SEBI.

14.3.2 Functions of SEBI

SEBI has been obligated to protect the interests of the investors in securities and to promote and
development of, and to regulate the securities market by such measures as it thinks fit. The
measures referred to therein may provide for:

(a) Regulating the business in stock exchanges and any other securities markets;
(b) Registering and regulating 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 and such other intermediaries
who may be associated with securities markets in any manner;
(c) Registering and regulating the working of the depositories, participants, custodians of
securities, foreign institutional investors, credit rating agencies and such other
intermediaries as SEBI may, by notification, specify in this behalf;
(d) Registering and regulating the working of venture capital funds and collective investment
schemes including mutual funds;

(e) Promoting and regulating self-regulatory organisations;
(f) Prohibiting fraudulent and unfair trade practices relating to securities markets;
(g) Promoting investors’ education and training of intermediaries of securities markets;
(h) Prohibiting insider trading in securities;
(i) Regulating substantial acquisition of shares and take-over of companies;

(j) Calling for information from, undertaking inspection, conducting inquiries and audits of
the stock exchanges, mutual funds, other persons associated with the securities market,
intermediaries and self- regulatory organisations in the securities market;
(k) Calling for information and record from any bank or any other authority or board or
corporation established or constituted by or under any Central, State or Provincial Act in
respect of any transaction in securities which is under investigation or inquiry by the
Board;

(l) Performing such functions and exercising according to Securities Contracts (Regulation)
Act, 1956, as may be delegated to it by the Central Government;
(m) Levying fees or other charges for carrying out the purpose of this section;

(n) Conducting research for the above purposes;
(o) Calling from or furnishing to any such agencies, as may be specified by SEBI, such
information as may be considered necessary by it for the efficient discharge of its functions;

(p) Performing such other functions as may be prescribed.
SEBI may, for the protection of investors,
(a) Specify, by regulations,

(i) The matters relating to issue of capital, transfer of securities and other matters
incidental thereto; and

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