he Preamble of the Securities and Exchange Board of India describes the basic functions of the Securities and Exchange Board of India as “to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto”.
More About SEBI
- SEBI is a statutory regulatory body established by the Government of India to regulate the securities market in India and protect the interests of investors in securities.
- The Securities and Exchange Board of India was established on April 12, 1992 in accordance with the provisions of the Securities and Exchange Board of India Act, 1992.
- SEBI has the power to regulate and perform functions such as:
. check the books of accounts of stock exchanges and call for periodical returns
. approve by-laws of stock exchanges
. inspect the books of financial intermediaries such as banks
. compel certain companies to get listed on one or more stock exchanges
. handle the registration of brokers
- The organization was created to meet the requirements of the following three groups:
. Issuers: SEBI works towards providing a marketplace to the investors where they can efficiently and fairly raise their funds
. Intermediaries: SEBI works towards providing a professional and competitive market to the intermediaries
. Investors: SEBI protects and supplies accurate information to investors
- Functions of SEBI
. Checks price manipulation
. Bans insider trading
. Promotes fair code of conduct in the security market
. Prohibits unfair and fraudulent trade practices
. Regulates and registers mutual funds as well
. Facilitates training of intermediaries