Page 69 - DMGT401Business Environment

Business Environment

Notes surveillance and monitoring of price movements and insider trading, and EDP and SEBI's
database.
4. The Secondary Market Exchange Administration, Inspection and Non-member
Intermediaries Department: It looks after the smaller stock exchanges of Guwahati, Indore,
Mangalore, etc. It is also responsible for inspection of all stock exchanges, registration,
regulation and monitoring or non-member intermediaries such as sub-brokers.
5. Institutional Investment, Mergers and Acquisition, Research and Publication, and
International Relations and IOSCO Department: It looks after policy, registration and
monitoring of Foreign Institutional Investors (FIIs), domestic mutual funds, merger and
substantial acquisition of shares, and IOSCO (International Organization of Securities
Commissions) membership, and research, publication and Annual Report of SEBI.
6. Legal Department: This department looks after all legal matters under the supervision of
the General Counsel.
7. Investigation Department: This department carries out inspection and investigation under
the supervision of the Chief of Investigation.
SEBI has its regional offices at Kolkata, Chennai and Delhi. SEBI has also formed two non-
statutory advisory committees, the Primary Market Advisory Committee and Secondary Market
Advisory Committee with the members from market player, recognized investors associates
and other eminent persons. SEBI is also a member of International Organization of Securities
Commissions (IOSCO)

2.4.1 Powers and Scope of SEBI

The functional area of SEBI is very wide. It is the rule maker, a custodian, and a watch dog of the
security market. In brief, it has the full power to regulate : (i) depositors and participants, (ii)
custodians, (iii) debentures trustees and trust deeds, (iv) FIIs, (v) inside traders, (vi) mutual fund,
(vii) portfolio manager, (viii) investment advisers, (ix) merchant bankers, (x) registrars to issue
and share transfer agents , (xi) stock brokers and sub - brokers, (xii) underwriters, (xiii) venture
capital funds, and (xiv) bankers to issue.

The SEBI can issue guidelines in respect of the following:
1. Information disclosure, operational transparency, and investor protection.
2. Development of financial institutions.
3. Priding of issues
4. Bonus issues.

5. Preferential Issues
6. Financial Instruments
7. Firm allotment and transfer of shares among promoters.
SEBI is empowered to register any agency or intermediary who may be associated with the
securities market, except under and in accordance with the conditions of a certificate of registration
issued by the SEBI.

After the suspension of CICA (Capital Issues Control Act 1947), SEBI is now authorized to
govern all the matter related to issue of capital. SCRA also authorizes the SEBI to conduct
inquiries into the working of the stock exchange, they are required to submit their annual
reports to the SEBI and requires the approval of SEBI for amending their rules and bye laws; SEBI

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