Securities and Exchange Board Of India

Introduction: Securities and Exchange Board of India (SEBI) was constituted by the Government of India, to protect the interests of the participants in the capital markets, ensure growth and vibrancy of the capital market, increase investor awareness and tackle the problems hampering the development of the capital market. SEBI as such, performs disciplinary and developmental roles for which it lays down rules and regulations to regulate the activities in the capital market.

Departments of SEBI: Under its internal administrative arrangements, SEBI is divided into various departments in order to concentrate on various aspects of the securities market. These departments are as follows:
1. Primary Market Department: This department looks after the policy matters and regulatory issues concerning the primary market. The department is responsible for regulations regarding underwriters, registrar to issue, credit rating agencies, share transfer agents, debenture trustees, merchant bankers, bankers to an issue and portfolio managers. The department also deals with disclosure norms and investor protection and regulations regarding various SROs.
2. Secondary Market Department: All the regulations and protection of secondary markets is done through this department. Regulations and committees regarding stockbrokers sub – brokers, delisting of securities, demutualization and corporatization of the stock markets are handled by this department.
3. Venture Capital Department: The venture capital department, as the name suggests, is entrusted with the job of regulating Indian and foreign venture capital firms.
4. Mutual Funds Department: The Mutual Funds Department is responsible for the regulation of mutual funds that operate in the securities market.
5. Collective Investment Schemes Department: This department regulates the Collective Investment Schemes (CIS). Any scheme or arrangement made or offered by an company under which the contribution or payments made by the investors, are pooled and utilised with a view to receive profits, income, and produce or property, is managed on behalf of the investors is a CIS.
6. Takeover Department: This department takes care of the substantial acquisition of shares and takeover of companies.
7. Legal Department: The legal department undertakes the job of providing legal advisory services to the organisation. It also handles all litigations and other legal issues.
8. Foreign Institutional Investors Department: The Foreign Institutional Investors Department regulates the registration and functioning of all FIIs in India.
9. Depositories Department: Regulation of Depository Participants (DPs) and Custodian of Securities is done by this department.
10. Derivatives Department: This department regulates and promotes the market for derivative instrument.
11. Investigation, Enforcement and Surveillance Department: This department is the watchdog of the securities market. Its responsibilities include investigating and surveying security markets and their transactions to catch persons involved in acts proscribed by the SEBI Act.
The head office of SEBI is located at Mumbai and it has established regional offices at New Delhi, Kolkata and Chennai.