Securities Exchange
Board of India
BY DR. MANISHA PATAWARI
About SEBI
The Securities and Exchange Board of India (SEBI) is the regulator of the
securities and commodity market in India owned by the Government of India.
It was established on 12 April 1988 and given Statutory Powers on 30
January 1992 through the SEBI Act, 1992.
SEBI has its headquarters at the business district of Bandra Kurla Complex in
Mumbai and has Northern, Eastern, Southern and western Regional Offices
in New Delhi, Kolkata, Chennai, and Ahmedabad respectively.
It has opened local offices at Jaipur and Bangalore and has also opened
offices at Guwahati, Bhubaneshwar, Patna, Kochi and Chandigarh in
Financial Year 2013–2014.
Madhabi Puri Buch is the current chairperson of SEBI.
Object of SEBI
Protect investor’s interest.
Promote development of security market.
Regulate the security market.
Regulate the matters incidental thereto.
Establishment of the Securities and
Exchange Board of India (SEBI, sec. 3)
The Central Government may, by notification, appoint, there shall
be established, for the purposes of this Act, a Board by the name of
the Securities and Exchange Board of India.
The Board shall be a body corporate and therefore will have
perpetual succession and a common seal. Further the act also give
power to the board to acquire, hold and dispose of property, both
movable and immovable, and to contract, and shall, by the said
name, sue or be sued.
The head office of the Board shall be at Bombay.
The Board may establish offices at other places in India
Management of the Board ( sec. 4)
1. The Board shall consist of the following members, namely:—
a) a Chairman (appointed by Central Government);
b) two members- the officials of the Ministry of Finance and MCA(nominated by
Central Government)
c) one member from amongst the officials of the Reserve Bank (nominated by RBI);
d) five other members of whom at least three shall be the whole-time members, to be
appointed by the Central Government.
Organizational Structure of SEBI
Part time members
Terms of office and condition of service of
chairman and members of the board
Chairman or the whole time Member shall be a person who does not, and will not, have any such
financial or other interests as are likely to affect prejudicially his functions as such Chairman or Member
The Chairman and every whole time member shall hold office for such period not exceeding 5 years,
as may be specified in the order of his appointment; but he shall be eligible for reappointment:
Provided that no person shall hold office as the Chairman or a [whole time member] after he attains the
age of sixty five years.
The chairman or whole time Member shall not accept any employment before the expiry of a period of
one year from the date of demitting the office in the Securities and Exchange Board of India, except
with the previous sanction of the Central Government.
*SEBI (Terms and Conditions of Service of Chairman and Members) Rules, 1992
Removal of member from the office
The Central Government shall remove a member from office if he—
is, or at any time has been, adjudicated as insolvent;
is of unsound mind and stands so declared by a competent court;
has been convicted of an offence which, in the opinion of the Central Government,
involves a moral turpitude;
has, in the opinion of the Central Government, so abused his position as to render his
continuation in office detrimental to the public interest.
No member shall be removed under this clause unless he has been given a reasonable
opportunity of being heard in the matter
Meetings (section 7)
The Board shall meet at least once every quarter and two member constitute
quorum. (Securities and exchange board of India (Procedure for Board Meetings)
Regulations, 2001).
The Chairman or, if for any reason, he is unable to attend a meeting of the Board,
any other member chosen by the members present from amongst themselves at
the meeting shall preside at the meeting. (Securities and exchange board of India
(Procedure for Board Meetings) Regulations, 2001 suggests that secretary can
preside the meeting).
All questions which come up before any meeting of the Board shall be decided by
a majority votes of the members present and voting, and, in the event of an
equality of votes, the Chairman, or in his absence, the person presiding, shall have
a second or casting vote.
