What Is the Securities and Exchange Board of India (SEBI)?
The Securities and Exchange Board of India (SEBI) is the regulatory authority in India that oversees and regulates the securities and financial markets in the country. It was established on April 12, 1992, through the SEBI Act, 1992, and it operates under the jurisdiction of the Ministry of Finance, Government of India.
SEBI's primary objective is to protect the interests of investors in securities and to promote the development and regulation of the securities markets in India. Some of the key functions and responsibilities of SEBI include:
Regulation of Securities Markets: SEBI formulates and enforces regulations and guidelines to ensure the fair and transparent functioning of securities markets in India. This includes regulating stock exchanges, brokers, and other market intermediaries.
Investor Protection: SEBI aims to safeguard the interests of investors by ensuring that they receive accurate and timely information about the companies in which they invest. It also addresses issues related to insider trading and fraudulent and unfair trade practices.
Supervision and Oversight: SEBI monitors the activities of various market participants, including stock exchanges, brokers, mutual funds, and other financial intermediaries, to ensure they comply with the regulatory framework.
Registration and Regulation of Market Participants: SEBI registers and regulates various market participants, such as stockbrokers, sub-brokers, merchant bankers, and portfolio managers, to ensure they meet the necessary standards of integrity and professionalism.
Promoting Market Development: SEBI takes measures to promote the development and growth of the securities markets in India. This includes introducing new financial instruments and facilitating innovations in trading and settlement systems.
Research and Education: SEBI conducts research and provides education to market participants and investors to enhance their understanding of the securities markets and financial products.
Enforcement and Adjudication: SEBI has the authority to investigate and take enforcement actions against individuals or entities involved in market manipulation, insider trading, or other violations of securities laws. It also has an adjudicating body to handle disputes and penalties.
SEBI plays a crucial role in maintaining the integrity and stability of the Indian securities markets, which, in turn, helps attract investments and ensures a level playing field for investors and market participants. Its regulatory actions are designed to foster confidence in the markets and protect the interests of investors while promoting capital market development in India.