SEBI

SEBI

Securities and Exchange Board of India (SEBI)

The Securities and Exchange Board of India was established by the Government of India on 12 April 1988as an interim administrative body to Protect the interests of investors To promote the development of the securities market And regulate the securities market

Purpose and Role of SEBI

• To the issuers: To provide a market to raise the finances in an EasyFair Efficient manner.

• To the investors: Provide protection of their rights and interests through Adequate Accurate and Authentic information on a continuous basis.

• To the intermediaries: Offer a competitive professionalized with adequate and efficient infrastructure. So that they are able to deliver better service to the investors and issuers.

Objectives of SEBI

1. Regulate stock exchanges and the securities industry to promote their orderly functioning.
2. Protect the rights and interests of investors and guide and educate them.
3. Prevent trading malpractices and achieve a balance between self-regulation by the securities industry and its statutory regulation.
4. To regulate and develop a code of conduct and fair practices by intermediaries like brokers.

Functions of SEBI

Protective functions

1. Controlling insider trading: It prevents insiders such as directors, and promoters who have access to price-sensitive information regarding securities of the company (which is not available to the public) to make individual profits through the trading of securities.
2. Undertaking steps for investment or protection.
3. Promotes fair practices and code of conduct in the securities market.
4. Stops fraudulent and unfair trade practices in the security market: - like making misleading statements and price rigging. (Manipulating with the sole intention of inflating or deflating the market price of securities is termed as “price rigging)

Developmental functions

1. Conducting research & publish information useful to all market participants.
2. Undertakes measures to develop the capital markets by adopting a flexible and adaptable approach.
3. Training of intermediaries of the securities market.

Regulatory functions

1. Conducts inquiries and audits of the stock exchanges.
2. Register and regulates the working of stockbrokers, sub-brokers, and share transfer agents.
3. Registers and regulates the working of mutual funds etc.
4. Regulation of stockbroker, portfolio exchanges, underwriters & merchant bankers
5. Regulation of tasks over bids by companies.
6. Levying fee or other charges as per the act.
7. Performing and exercising such power under Securities Contracts (Regulation) Act 1956, as may be delegated by the Government of India.