What is SEBI and what is the main role of SEBI

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The Securities and Exchange Board of India (SEBI) is a statutory regulatory body constituted by an Act of Parliament to protect the interests of investors in securities, facilitate and regulate the development of the securities market. SEBI is the regulatory body for securities markets in a simplified manner. 

SEBI is basically a

  • Body corporate,
  • Gradual succession and
  • A common seal,
  • With the power to gain, hold and dispose of property, both movable and immovable and to contract,
  • Sue and be claimed in its own name.

There can be no debate on SEBI without thinking about its essential role.

Role of SEBI- 

  • The board must protect the interests of investors in securities and encourage the development and regulation of the securities market through such steps as it deems necessary.
  • It is regulating the stock exchange sector and any other financial markets.
  • Monitor and register the activity of trustees, sub-brokers, stockbrokers, share transfer agents, issuers, merchant bankers, underwriters, portfolio managers, investment advisors and other intermediaries, who are somehow connected to the securities markets.
  • To register and regulate the functioning of venture capital funds and collective investment schemes, including mutual funds.
  • Self-regulatory organizations are promoted and regulated.
  • Restrictions on fraud and unfair securities-related trade practices.
  • Promoting investor education and training of securities market intermediaries.
  • Prohibiting insider trading in securities.
  • Regulation of substantial acquisition of shares and acquisition of companies.
  • Calling for information from securities markets, intermediaries and other persons associated with self-regulatory organizations, stock exchanges, mutual funds, conducting inquiries and audits, inspections, undertaking inspections, undertakings.
  • To perform such functions and exercise such powers as may be delegated by the Central Government under the provisions of the Securities Contracts (Regulation) Act, 1956.
  • Fees or other charges for carrying out the purposes of this section.
  • Conduct research for the above purposes.
  • Determining other such functions.

Without prejudice to the rules, the Board may take any of the following steps in the interests of investors or the stock market, either for a pending investigation or inquiry or for such investigation or inquiry, for reasons to be reported in writing. The latter has been done. Complete: –

  • Suspend the trading of any security at a recognized stock exchange.
  • Restricting individuals from accessing the securities market and prohibiting anyone associated with the securities market from buying, selling, or trading securities.
  • Prevent any officer of any stock exchange or self-regulatory organization from being held in such condition.
  • Reducing and reducing income or securities in connection with any transaction.
  • No intermediary or any person associated with the securities market is to make or separate part of any transaction that is under investigation.

Conclusion: SEBI is India’s stock market regulator, that is, it makes rules and laws that strictly follow the stock market.

Role of SEBI and aims to promote stock exchange development, protect the interests of retail investors, and regulate market participants’ activities and financial intermediaries.

Functions of SEBI

Protecting the interest of investors in the stock market: – Most of the investors buy and sell shares in the stock market of many companies. If something wrong happens with such individuals, then investors can file their complaints with SEBI. The first task of SEBI is to protect the interest of investors.

Capital Market Development: – Capital market is the market that provides loans to companies for the short or long-term. Companies or industrial houses can take loans through the capital market and then the primary function of SEBI is to develop such a market.

Bringing all aspects of the stock market under SEBI: – There are many parts of the stock market, such as firms, investors, corporate brokers, all of which are subject to SEBI rules as well as the main functions of SEBI. Consists of one. So that the entire stock market can follow SEBI regulations and not be fooled by any investor.

It is prohibiting unethical trading in the stock market: – Any business which is dishonest in the stock market, company that does the wrong business and prohibits unethical sale or sale of shares of any company in the market. Hence, SEBI prevents its customers from this type of illegal trade.

Stopping insider trading: -Inside trading means intimate trading, many times it happens that many companies are issuing their shares, such as company officials who are aware of that company’s secret business or, if you do something knowing the confidential information, those officers are making more profit through that stock. It is also essential to stop this insider trading

Mutual Fund Registration: – Many schemes are being launched in the country, where many people are investing money together and putting it in the stock market or stock market. The job of SEBI is also to register and take care of such funds.

Primarily we can assume that SEBI is responsible for the operation of every stock market. And that broker, do not cheat with the investor. The primary objective of SEBI is to stop all these issues. SEBI has many functions, and its primary function is to protect the interests of investors and by continuous technology to improve the stock market infrastructure.