mThe central government constituted an administrative body SEBI in April 1988

mIn January 1992 granted a statutory recognition to SEBI as a regulator of the

securities/ markets.
mThe governing board of the council consists of
total 10 members
4 from stock exchanges  4 from government,
corporate finance, commerce, accountancy, management and law  2 from
investment and development finance institutions.
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SEBI has power to make new rules for controlling stock

exchange in India. For example, SEBI fixed the time
of trading 





in stock market.






 





SEBI has power to provide license to dealers and brokers of capital market.
One of main example is ULIPs case. SEBI said, " It is just like mutual funds
and all banks and financial and insurance companies who want to issue it, must
take permission from SEBI.³











SEBI has many powers for stopping fraud in capital market.

It can ban on the trading of those brokers who are involved in fraudulent
and unfair trade practices relating to stock market.
It can impose the penalties on capital market intermediaries if they involve
in insider trading.
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ðany big companies in India want to create monopoly in capital market. So, these
companies buy all other companies or deal of merging. SEBI sees whether this merge or
acquisition is for development of business or to harm capital market.





 
 




SEBI uses his powers to audit the performance of different Indian stock exchange for
bringing transparency in the working of stock exchanges.








 
 

 

Share trading transactions carry forward can not exceed 25% of broker's total
transactions.
90 day limit for carry forward.





 





ICAI is the authority for making new auditors of companies. SEBI creates good
relationship with ICAI for bringing more transparency in the auditing work of company
accounts
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For reducing the risk of investors, SEBI has now been decided to permit Stock
Exchanges to introduce derivative contracts on Volatility Index, subject to the condition
that
a. The underlying Volatility Index has a track record of at least one year.
b. The Exchange has in place the appropriate risk management framework for
such derivative contracts.










  





SEBI has also power to require report of portfolio management to check the capital
market performance. Recently, SEBI sent the letter to all Registered Portfolio ðanagers
of India for demanding report.

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Time to time, SEBI arranges scheduled workshops to educate the investors. On 22 may
2010 SEBI imposed workshop. If you are investor, you can get education through SEBI
leaders by getting update information on this page
M