The Securities Exchange Board of India (SEBI) was officially established by The Government of India in the year 1988 and given statutory powers in 1992 with SEBI Act 1992 being passed by the Indian Parliament. Initially, the SEBI was a non-statutory body without any statutory power. However, the SEBI was given additional statutory power by the Government of India through an amendment to the Securities and Exchange Board of India Act, 1992 enacted on April 12.
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. The Preamble of the Securities and Exchange Board of India describes the basic functions of the Securities and Exchange Board of India as
"...to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto"
It monitors and regulates corporate governance of listed companies in India through Clause 49 of the Listing Agreement. This clause is incorporated in the listing agreement of stock exchanges and it is compulsory for them to comply with its provisions. It was first introduced in the financial year 2000-01 based on the recommendations of Kumar Mangalam Birla committee .
Structure and Functions of SEBI
S.no Major Departments Functions
1. Market Intermediaries Regulation and Supervision Department (MIRSD) It is responsible for the registration, supervision,
compliance, monitoring and inspections of all market intermediaries in respect of all segments of the markets
viz. equity, equity
derivatives, debt and debt
2. Market Regulation Department (MRD) It is responsible for
supervising the functioning and operations (except relating to derivatives) of securities exchanges, their subsidiaries, and
market institutions such...