What is SEBI?
Securities as well as Exchange Board of India (SEBI) is an apex trunk for overall evolution as well as regulation of the securities market. It was laid upwards on Apr 12, 1988. To induce with, SEBI was laid upwards every bit a non-statutory body. Later on it became a statutory trunk nether the Securities Exchange Board of Bharat Act, 1992. The Act entrusted SEBI amongst comprehensive powers over practically all the aspects of capital market operations.
Picture of SEBI Bhavan inwards Mumbai. Image Credits © Paul Noronha.
Role Functions of SEBI
The role or functions of SEBI are discussed below.
- To protect the interests of investors through proper instruction as well as guidance every bit regards their investment inwards securities. For this, SEBI has made rules as well as regulation to survive followed past times the fiscal intermediaries such every bit brokers, etc. SEBI looks later the complaints received from investors for fair settlement. It besides issues booklets for the guidance as well as protection of small-scale investors.
- To regulate as well as command the business on stock exchanges as well as other safety markets. For this, SEBI keeps supervision on brokers. Registration of brokers as well as sub-brokers is made compulsory as well as they are expected to follow sure as shooting rules as well as regulations. Effective command is besides maintained past times SEBI on the working of stock exchanges.
- To brand registration as well as to regulate the functioning of intermediaries such every bit stock brokers, sub-brokers, percentage transfer agents, merchant bankers as well as other intermediaries operating on the securities market. In addition, to supply suitable grooming to intermediaries. This portion is useful for salubrious atmosphere on the stock telephone commutation as well as for the protection of small-scale investors.
- To register as well as regulate the working of usual funds including UTI (Unit Trust of India). SEBI has made rules as well as regulations to survive followed past times usual funds. The purpose is to maintain effective supervision on their operations & avoid their unfair as well as anti-investor activities.
- To promote self-regulatory arrangement of intermediaries. SEBI is given broad statutory powers. However, self-regulation is improve than external regulation. Here, the portion of SEBI is to encourage intermediaries to shape their professional person associations as well as command undesirable activities of their members. SEBI tin flaming besides utilisation its powers when required for protection of small-scale investors.
- To regulate mergers, takeovers as well as acquisitions of companies inwards lodge to protect the involvement of investors. For this, SEBI has issued suitable guidelines as well as then that such mergers as well as takeovers volition non survive at the toll of small-scale investors.
- To prohibit fraudulent as well as unfair practices of intermediaries operating on securities markets. SEBI is non for interfering inwards the normal working of these intermediaries. Its portion is to regulate as well as command their objectional practices which may impairment the investors as well as salubrious increase of working capital missive of the alphabet market.
- To number guidelines to companies regarding working capital missive of the alphabet issues. Separate guidelines are prepared for induce world number of novel companies, for world number past times existing listed companies as well as for induce world number past times existing somebody companies. SEBI is expected to acquit inquiry as well as seat out data useful to all marketplace position players (i.e. all buyers as well as sellers).
- To acquit inspection, inquiries & audits of stock exchanges, intermediaries as well as self-regulating organizations as well as to accept suitable remedial measures wherever necessary. This portion is undertaken for orderly working of stock exchanges & intermediaries.
- To restrain insider trading action through suitable measures. This portion is useful for avoiding undesirable activities of brokers as well as securities scams.
