Constitution and Management of the Board

Since the passing of the SEBI Act, 1992, the Central Government has, vide its powers under Section 3 of the Act, established the SEBI (Board) with its headquarters at Mittal Court, 'B' Wing, 1st Floor, 224, Narimanpoint, Mumbai-400 021. The Board has been constituted as a body corporate by the name 'Securities and Exchange Board of India' having perpetual succession and a common seal, with powers, subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, and to contract, and shall, by the said name, sue or be sued [Section 3(2)].
The Board has been empowered to establish offices at other places in India.
Constitution and Management of the Board
Section 4 of the Act provides for the constitution of the Board of members, powers and
qualifications of the chairman and members of the Board.
SEBI shall consist of the following members, namely:
(a) a chairman to be appointed by the Central Government;
(b) two members from ,amongst the officers of the Ministry of the Central
Government dealing with Finance and administration of the Companies Act, 1956', to be nominated by the Central Government;
(c) one !TIember from amongst the officers of the Reserve Bank of India, to be
n,9minated by RBI; and ,
(d) five o~er memberS-of whom at least three sJ.1all be the whole time members
to be appointed by the Central Government.
The members of the Board have been vested with the power of general superintendence, direction and management of the affairs of the Board. Accordingly, the members of the Board shall exercise all powers and do all acts and things which may be exercised or done by the SEBI. Their position is similar to that of directors in a company.
The chairman of the Board shall also have powers of general superintendence, direction and management of the affairs of SEBI. The chairman may also exercise all powers and do all kinds of things which may be exercised or done by SEBI.
Thus, the powers of the Board of members can also be exercised by the chairman. However, ~powerscl~~~be~~~~~~~~~~Boardillm~rscl
SEBI. The ~tion to be made bySEBI ~lay down the specific powers to ~exercised by the ~ and ~ powers that can be exercised only by the members of ~ Board.
Sub-section (5) of Section 4 provides that the chairman and other members of the Board to be appointed by the Central Government should be persons of ability, integrity and standing having capability in dealing with problems relating to securities market, or possessing special knowledge or experience of law, finance, economics, accountancy, administration or any other discipline which, in the opinion of the Central Government, shall be useful to the Board.

~ 3. What are the functions and powers assigned to SEBI under the SEBI Act, 1992? .9l.ns .
Functions of SEBI
Section 11 of the SEBI Act, 1992 provides that, subject to the provisions of the Act, it shall be the duty of the Board to protect the interest of investors in securities and to