SEBI POWER’S IN RELATION TO STOCK EXCHANGE:-

· May call periodical returns from Stock exchange

· Has power to approve by laws of stock exchange for regulation and control of contracts

· Can amend by laws of stock exchange

· Provide license to dealer In securities

· Compel a public company to list its shares

· May also call upon exchange or any member to give explanation/ information related to affairs of stock exchange.

SECURITIES AND EXCHANGE BOARD OF INDIA ( SEBI)

The establishment of SEBI was a land mark government measure to monitor and regulate capital market activities and to promote healthy development of the market.

It was constituted in 1988 by a resolution of Government of India and was made a statutory body by Securities and Exchange Board of India Act 1992.

Objectives / Purpose of SEBI Act:-

· To protect the interests of investors in securities

· To promote the development of the securities market

· To regulate the securities market

· For matters connected therewith or incidental too.

Management of the Board ( Sec 4)

It consist of

a) Chairman

b) 2 members from among the officials of the ministries of central govt. dealing with Finance and Law.

c) One member from amongst the officials of RBI

d) Two other members to be appointed by the central government.