Securities and Exchange Board of India (SEBI)
GS II: Statutory, regulatory and various quasi-judicial bodies
- The Securities and Exchange Board of India (SEBI) is the regulatory body responsible for overseeing and regulating the securities market in India.
- It was established on April 12, 1992, as an independent statutory body to protect the interests of investors, promote the development of the securities market, and regulate the functioning of market intermediaries.
- SEBI operates under the Securities and Exchange Board of India Act, 1992, which grants it extensive powers and authority to regulate various aspects of the securities market.
- SEBI is governed by a board of members, including a chairman, appointed by the Indian government.
- The board comprises individuals with expertise in finance, economics, law, and related fields.
Primary Objectives of SEBI
- Investor Protection
- SEBI aims to safeguard the interests of investors by ensuring transparency, fairness, and integrity in the securities market.
- It works to prevent fraudulent and unfair trade practices and promotes investor education and awareness.
- Regulation of Securities Market
- SEBI regulates various segments of the securities market, including stocks, bonds, debentures, mutual funds, and other financial instruments.
- It formulates rules, regulations, and guidelines for the issuance and trading of securities.
- Development of Securities Market
- SEBI promotes the development and growth of the securities market by encouraging new financial products, innovative trading mechanisms, and market infrastructure.
- Supervision and Oversight
- SEBI exercises oversight and supervisory functions over various market participants, such as stock exchanges, brokers, merchant bankers, portfolio managers, and other intermediaries.
- Enforcement
- SEBI has the authority to investigate and take enforcement actions against entities that violate securities laws, regulations, and guidelines.
- Research and Training
- SEBI conducts research and provides training and education to market participants, investors, and intermediaries to enhance market efficiency and awareness.
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