Finance Explained

The Securities and Exchange Board of India (SEBI) is the regulator of the securities market in India. It was established in 1988 and given statutory powers in 1992 through the Securities and Exchange Board of India Act.

SEBI’s main objectives are to protect the interests of investors in securities and to promote the development of the securities market. Some of the key functions of SEBI include regulating the issuance of securities, ensuring compliance with securities laws, and investigating and enforcing actions against companies and individuals for violations of securities laws.

One of SEBI’s main responsibilities is to ensure that companies comply with disclosure and other requirements before issuing securities to the public. This includes reviewing prospectuses and other offering documents, and ensuring that the information provided is accurate and complete.

SEBI also oversees the operations of stock exchanges and other securities market intermediaries, such as stockbrokers, merchant bankers, and registrars to an issue. This includes implementing rules and regulations for the trading of securities on the stock exchanges, and taking action against intermediaries who violate these rules.

In addition to its regulatory functions, SEBI also promotes the development of the securities market by encouraging new products and services, and by improving market infrastructure. For example, SEBI has been instrumental in the development of the derivatives market in India, and has also taken steps to increase the participation of foreign investors in the Indian securities market.

SEBI also plays a key role in protecting the interests of investors. It investigates complaints of fraud and insider trading, and can take enforcement action against companies and individuals found to have violated securities laws. SEBI also runs investor education programs to help educate investors about the securities market and how to invest wisely.

In conclusion, SEBI is a vital organization that plays a crucial role in regulating the securities market and protecting the interests of investors in India. Its functions include regulations and compliance, market development, and investor protection.