What is SEBI?
The Securities and Exchange Board of India (SEBI) is a key regulatory body established by the Indian government to oversee the securities market. Founded on April 12, 1992, under the SEBI Act, it aims to ensure transparency and fairness in India's investment landscape. SEBI's main office is in Mumbai, with regional offices in New Delhi, Ahmedabad, Kolkata, and Chennai.
History of SEBI
Before SEBI was established, India's securities market was managed by various government bodies, leading to inconsistencies and inefficiencies. In 2014, SEBI was granted additional powers, enabling it to conduct search and seizure operations and enforce stricter penalties for market manipulation and insider trading. Today, SEBI is considered one of the top regulatory authorities globally, playing a crucial role in the development and regulation of the Indian securities market.
Objectives of SEBI
SEBI's primary goal is to regulate the Indian capital market and protect investors. Its objectives include:
Monitoring and regulating the securities market to safeguard investor interests.
Creating a secure investment environment through rules and regulations.
Preventing malpractices in the Indian stock market.
Functions of SEBI
SEBI performs several vital functions to maintain the integrity and smooth functioning of the securities market:
Protecting the interests of investors.
Promoting the development of the securities market.
Regulating business operations within the securities market.
Serving as a platform for various market participants like stockbrokers, investment advisers, and others.
Overseeing tasks handled by credit rating agencies, custodians, foreign investors, and other participants.
Educating investors about the securities market and its intermediaries.
Preventing fraudulent and unfair trade practices.
Monitoring company takeovers and share acquisitions.
Ensuring the market remains efficient and up-to-date through research and development.
Powers of SEBI
SEBI has significant authority to maintain order in the securities market:
Making decisions in cases of fraud and unethical practices.
Ensuring transparency, accountability, and fairness in the market.
Examining financial records to gather evidence of violations and taking legal action against wrongdoers.
Creating rules and regulations to protect investors, including those related to listing obligations, insider trading, and disclosure requirements.
Eliminating market malpractices through stringent rules and regulations.
SEBI's role as a regulatory body is critical for the stability and growth of India's securities market, ensuring a fair and transparent environment for investors and market participants alike.
Rathi
Marketing Intern
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