Page 6 - Lesson Note 4
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2. Conducting research and publishing information useful to all market participants.
3. Undertaking measures to develop the capital markets by adapting a flexible approach.
Protective Functions
1. Prohibition of fraudulent and unfair trade practices like making misleading statements,
manipulations, price rigging etc.
2. Controlling insider trading and imposing penalties for such practices.
3. Undertaking steps for investor protection.
4. Promotion of fair practices and code of conduct in securities market.
The Organization Structure of SEBI
As SEBI is a statutory body there has been a considerable expansion in the range and scope of
its activities. Each of the activities of the SEBI now demands more careful, closer, co-ordinate
and intensive attention to enable it to attain its objectives. Accordingly, SEBI has been
restructured and rationalized in tune with its expanded scope. It has decided its activities into
five operational departments. Each department is headed by an executive director.
Apart from its head office at Mumbai, SEBI has opened regional offices in Kolkata, Chennai, and
Delhi to attend to investor complaints and liaise with the issuers, intermediaries and stock
exchanges in the concerned region.
The SEBI also formed two advisory committees.
They are the Primary Market Advisory Committee and the Secondary Market Advisory
Committee.
These committees consist of the market players, the investors associations recognized by the
SEBI and the eminent persons in the capital market. They provide important inputs to the SEBI’s
policies. The objectives of the two Committees are as follows:
