Powers of SEBI
The of import powers of SEBI (Securities too Exchange Board of India) are:-
Figure 1. Image or motion painting of SEBI's official logo.
1. Powers relating to stock exchanges & intermediaries
SEBI has broad powers regarding the stock exchanges too intermediaries dealing inwards securities. It tin enquire data from the stock exchanges too intermediaries regarding their business transactions for inspection or scrutiny too other purpose.
2. Power to impose monetary penalties
SEBI has been empowered to impose monetary penalties on capital market intermediaries too other participants for a make of violations. It tin fifty-fifty impose intermission of their registration for a brusk period.
3. Power to initiate actions inwards functions assigned
SEBI has a ability to initiate actions inwards reckon to functions assigned. For example, it tin number guidelines to dissimilar intermediaries or tin innovate specific rules for the protection of interests of investors.
4. Power to regulate insider trading
SEBI has ability to regulate insider trading or tin regulate the functions of merchant bankers.
5. Powers nether Securities Contracts Act
For effective regulation of stock exchange, the Ministry of Finance issued a Notification on thirteen September, 1994 delegating several of its powers nether the Securities Contracts (Regulations) Act to SEBI.
SEBI is too empowered past times the Finance Ministry to nominate 3 members on the Governing Body of every stock exchange.
6. Power to regulate describe of piece of occupation concern of stock exchanges
SEBI is too empowered to regulate the describe of piece of occupation concern of stock exchanges, intermediaries associated alongside the securities marketplace equally good equally usual funds, fraudulent too unfair merchandise practices relating to securities too regulation of acquisition of shares too takeovers of companies.
