SEBI Act and SEBI Guidelines

SEBI Guidelines

SEBI was previously a non-statutory establishment that monitored share market activities. After the SEBI Act of 1922, it became a statutory body having independent jurisdiction. This Act gave it the power to enforce regulations. As per the SEBI Act 1992, it covers the following things:

• Actions and composition of SEBI Board members
• Board’s functions and powers
• SEBI’s fund sources (grants made by Union Government)
• Rules on penalties
• Norms associated with the anti-money laundering
• Defining SEBI’s judicial authority
• Union Government’s extent of powers to supersede it

SEBI also has to follow guidelines for specified areas, including:

• Employee stock option schemes
• Disclosure & investor protection norms
• Initiating trading terminals overseas
• Legal proceedings
• Listing & delisting of securities