RV INSTITUTE OF LEGAL STUDIES
JAYANAGAR, 3RD BLOCK EAST, JAYANAGAR,
BENGALURU, 560011
TOPIC – SEBI SECURITIES BOARD OF INDIA
SUBJECT – COMPANY LAW
COURSE TEACHER
–
DR. SHYAM
PRASAD
PROFESSOR
BY – MOIZ ABDULLA.
6TH SEM BA.LLB
DATE – 24/08/2022
CONTENT LIST 1.INTRODUCTION
2. PREAMBLE
3. FUNCTIONS
4. POWERS
5. SEBI V. SAHARA INDIA PARIWAR
6. QUESTIONS
2
1. INTRODUCTION
Securities and Exchange Board of India was
constituted as a non statutory body on April 12,
1988 by a resolution of Govt of India. And in the
year 1992 it was established, as a statutory
body. As it came in to force on January 30
1992.
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2. PREAMBLE
- Basic functions of the securities
and Exchange Board of India, is to
protect the interest of the investors,
- And to promote, the interest of the
investors and to regulate the
securities market.
3. FUNCTIONS
1. SEBI, is primarily set up to protect the interests of the investors.
2. It promotes the development of the securities market, and regulates the
business.
3. It regulates the operation of deposits, participants, custodians, of the
securities foreign portfolio investors, and credit rating.
4. It prohibits INSIDE TRADING, fraudulent and unfair trade practice related to
securities market.
5. It ensure that investors are educated on the intermediaries of the securities
market.
6. SEBI, take care of the research and development to ensure the securities
market it's efficient at all the times.
4. POWERS
There are 3 major powers of SEBI –
1.
QUASI JUDICIAL : SEBI, has the authority to deliver judgement
related to the fraud and other unethical, practices in market. It
helps to ensure fairness, transparency and accountability.
2.
QUASI EXECUTIVE : SEBI, is empowered to implement the
regulations and judgements and take legal action against the
violators, It is also authorized to inspect Into accounts and
other documents,. If there is a violation.
3.
QUASI LEGISLATIVE : SEBI, reserves the right to frame rules and
regulations to protect interest of thr investors some of its
regulations are, INSIDE TRADING, LISTING OBLIGATION AND
DISCLOSURE REQUIRMENT. This is to avoid malpractices in the
securities.
5. SEBI V. SAHARA INDIA PARIWAR
ROLE OF SEBI IN SAHARA SCAM.
SEBI V. SAHARA INDIA PARIWAR.
SEBI, has a important role to bring out the Sahara scam,
had a huge funds in account to it. DRHP - Draft Red
Herring Prospectus. Was issued by Sahara. To collect
loan from the people to register it as a share of the
company. Which must be informed to SEBI, and Sahara
provide the information to SEBI.
By the prospectus issued by the Sahara, which let to down the fatal of the Sahara company.
EFFECTS IN THE PROSPECTUS.
1.where find out that Sahara is an non listed company, by which it is raising huge funds.
2. By OFCD ( Optional fully convertible Debentures)
3. The OFCD, dispute was pending in the income tax department, Sahara was raising funds.
4. If more than 50 people subscribe for OFCD it becomes an public offering and Sahara issued
that it as private subscription, but the number of investors where ( around 30millions).
By this activity of Sahara, SEBI got awareness about this illegal activities .SAHARAS DEFENCES
TO THE SEBI ALLEGATIONS. It told the defense of, Sec. 55A and Sec. 60B.Hence later, by the
Supreme Court it was held that SAHARA is liable for violating Sec. 67.Hence it was held that
Sahara to payback the funds with interest amount.
ANY QUESTIONS?
THANK
YOU