The Securities and Exchange Board of India regulates the securities market in India. In 1988, the Government of India established the SEBI. In 1992, the non-statutory body was declared as the statutory body. The professionals working in SEBI promote investment, and investor’s interest, and regulate and develop the securities market. The eligibility to work in SEBI is a master’s or professional degree in engineering, law, CA, CMA, CFA and ACS. Recently, SEBI introduced a young professional programme to hire nearly fifty professionals to assist SEBI in the information technology and securities market. The blog walks us through the eligibility criteria and nature of the work of the young professional programme. Also, the blog provides tips for the preparation of SEBI interviews.
Eligibility to join the young professional programme of SEBI:
The SEBI employees are not allowed to invest in the share market according to the SEBI regulation 2015. Similarly, the professionals joining the young professionals programme are refrained from trading or speculating on securities, stocks and commodities. The trainees cannot make indirect or direct investments in equity-related or equity instruments. The trainees cannot invest in convertible warrants and debentures, units of mutual funds, non-convertible bonds, nonconvertible debentures and ETFs. SEBI as a regulatory body in the securities market deals with price-sensitive information. The professionals working as trainees for stipends are deemed as insiders. The insiders cannot communicate or act on the unpublished price information.
The selected young professionals will work in the Mumbai office. The young professionals receive a stipend of 70,000 per month. The period of service for the trainees is one to three years. They are not placed as SEBI officers. The trainees do not receive employment in the event of death or injury. The young professionals may not be involved in the confidential work. The projects and work assigned to the young professionals are non-confidential. The young professionals cannot work in another place during the training program.
Candidates with a post-graduate in management, cost management accountants, company secretaries, chartered accountants, and chartered financial analysts from CFA are eligible to join the program. The young professionals work in the securities market operations (SMO) domain.
Nature of work at SEBI:
The nature of work assigned to the professionals is listed in the following points:
- The candidates are asked to analyse the IPO applications. The IPO applications are used to raise funds in the primary market.
- The candidates draft letters for takeovers and buyback process. The candidate streamline the process of public offer documents submitted to the SEBI.
- The candidates also work on mutual fund surveillance.
- The candidates work on corporate governance.
- The candidates in the young professional group identify the role of shareholder directors and public interest directors.
Objectives of SEBI:
SEBI was the regulatory body that monitors and secures the capital market. The objectives of SEBI are listed below:
- SEBI protects the interests of the investors. With the ally of the participants, SEBI accomplishes the objectives. SEBI protect financial investments.
- SEBI is responsible for stopping malpractices like insider trading. SEBI protect the stock market from fraudulent activities. SEBI eradicate trading-related misconduct in the securities market.
- The mission of SEBI is to promote fair operations and ensure the activities of the financial intermediaries’ are fair.
- SEBI establish a balance between self-regulation and statutory requirements.
SEBI and international markets:
The stock markets are gauged with currency movements, volatility, and indices returns. In 2024, the top ten stock markets are as follows: US, China, Japan, Hong Kong, India, France, UK, Canada, Saudi Arabia, and Germany. Globally, India is among the top five performing stock markets. Around the world, the US stock market is the largest one. The market capitalization of the US is $55, 58877 trillion. China has a total market capitalization of $9.7833 trillion. According to the 2023 report, the China market declined to 3.77% value. In 2023, Japan increased the market capitalisation value. The market capitalization of Hong Kong according to 2024 data is $5.2650. Hong Kong’s performance is higher than the previous year. In May 2024, India crossed the market of $5 trillion. The big rise is a sign of growth. SEBI implement the regulations and practices to promote market capitalisation and individual performance. SEBI’s performance attracts investors to invest in Indian stock markets.
SEBI structure:
SEBI has quasi-judicial, quasi-executive and quasi-legislative powers. SEBI has twenty departments of operations. The departments are as follows: enforcement, economic and policy analysis, legal affairs, investment management, corporation finance, human resources, debt and hybrid securities, and market regulation. Two officers from the union finance ministry work in SEBI. The committee of SEBI has one member from RBI. Five additional members are from the Union Government of India. SEBI functions with three different functions.
The protective, regulatory, and development functions are the three different functions of SEBI. The regulatory function is the primary function. SEBI regulates the financial markets and stock exchanges. SEBI control the functions of depository participants, foreign institutional investors, custodians of securities, credit rating agencies, mutual funds, intermediaries, and venture capital funds. SEBI also takes care of programs regulating corporate takeovers and share purchases. SEBI also enquires the companies for inspection and performs audits. SEBI takes care of unfair business practices through protective functions. SEBI produce orders to support the investors, fair trade, middlemen, and trade balance. The Development functions are to stop illegal and dishonest practices.
Final Words:
The young professional program is suitable for CA, CMA and ACS students. Students willing to make changes in the financial markets and investments can take the golden opportunity. The experience helps the professionals to understand the challenges in the Indian markets and the ways to implement the best practices. Investment is the gateway to the growth of the country.