INTRODUCTION

The Securities and Exchange Board of India,setup in1988 under an administrative arrangement ,givenstatutory powers with the enactment of the SEBI Act1992. The act provides for the establishment of the board toprotect the interest of investors in securities market. The board consists of a chairman , two members fromthe govt. of india,ministriesof law and finance,onemember from the RBI and two other members It describe the manner in which SEBI Act 1992,the SCRA1956,the companies Act 1956 and the depository act1996.

OBJECTIVES OF SEBI
To protect the interest of the investors in securities. To promote the development of securities market. To regulates the securities market.

ROLE OF SEBI IN NEW ISSUEMARKET

Any company or a listed company making a publicissue or a rights issue of value or more than Rs50 lakhsis required to fill a draft offer document with SEBI for itsobservation.

The company can proceed further only after gettingobservation from SEBI. The company has to open its issue within three monthsfrom the date of SEBIs observation letter. Through public issues,SEBIhas laid down eligibilitynorms for entities accessing the primary market.

THE SECURITIES AND EXCHANGE BOARD OF INDA ACT, 1992

An act to provide for the establishment of a Board to protect theinterests of investors in securities and topromote the development of, and toregulate, the securities market and for matters connected there with or incidental there to.