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    Role of Securities Exchange Board of India

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    vanlalmalsawma Sailo
    SEBI (Securities Exchange Board of India) regulates securities markets in India. It was established in 1988 to regulate stock exchanges and protect investors. SEBI has three main functions: protective, developmental, and regulatory. The protective function checks price rigging, insider trading, and fraudulent practices. The developmental function promotes training and new trading methods. The regulatory function registers investment funds and regulates takeovers and company audits. SEBI is headed by a chairman and divided into departments to efficiently regulate India's securities markets.

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    Role of Securities Exchange Board of India

    Uploaded by

    vanlalmalsawma Sailo
    54 views2 pages
    SEBI (Securities Exchange Board of India) regulates securities markets in India. It was established in 1988 to regulate stock exchanges and protect investors. SEBI has three main functions: protective, developmental, and regulatory. The protective function checks price rigging, insider trading, and fraudulent practices. The developmental function promotes training and new trading methods. The regulatory function registers investment funds and regulates takeovers and company audits. SEBI is headed by a chairman and divided into departments to efficiently regulate India's securities markets.

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    Roles of SEBI

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    SEBI (Securities Exchange Board of India) regulates securities markets in India. It was established in 1988 to regulate stock exchanges and protect investors. SEBI has three main functions: protective, developmental, and regulatory. The protective function checks price rigging, insider trading, and fraudulent practices. The developmental function promotes training and new trading methods. The regulatory function registers investment funds and regulates takeovers and company audits. SEBI is headed by a chairman and divided into departments to efficiently regulate India's securities markets.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    54 views2 pages

    Role of Securities Exchange Board of India

    Uploaded by

    vanlalmalsawma Sailo
    SEBI (Securities Exchange Board of India) regulates securities markets in India. It was established in 1988 to regulate stock exchanges and protect investors. SEBI has three main functions: protective, developmental, and regulatory. The protective function checks price rigging, insider trading, and fraudulent practices. The developmental function promotes training and new trading methods. The regulatory function registers investment funds and regulates takeovers and company audits. SEBI is headed by a chairman and divided into departments to efficiently regulate India's securities markets.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    of 2

    Role of Securities Exchange Board of India (SEBI)

    One of the major regulatory authorities is the Securities Exchange Board of India
    (SEBI).

    Let’s move on to read more about SEBI, its role and objective and key functional areas. This
    post intends to equip you with all the relevant information about the SEBI. This will help you
    in banking entrance exams and group discussions.

    Overview of SEBI

     Securities Exchange Board of India (SEBI) was established in 1988 to regulate the
    functions of securities market.
     SEBI promotes orderly development in the stock market.
     SEBI was set up with the main idea to keep a check on malpractices and protect the
    interest of investors.

    Now, let us gain more insights into the objectives and functions of SEBI.

    Objectives of SEBI

    The objectives of SEBI are:

     To regulate activities in stock exchange and ensure safe investments


     To prevent fraudulent practices by striking a balance between business and its
    statutory regulations

    Functions of SEBI

    The three main functions of SEBI are as follows:

    1. Protective function
    2. Developmental function

    iii. Regulatory function

    1. Protective functions are performed by SEBI to protect interest of investors and


    provide safe investments. This entails:

     Checks on prices rigging: Price rigging refers to manipulating the prices of


    securities.
     Prevents insider trading: Insider refers to directors, promoters of the company.
    These people have sensitive information which they can use to make profit. SEBI
    keeps a stringent check whether insiders are buying securities of the company.
     Prohibits fraudulent and unfair practices: SEBI does not allow companies to make
    misleading statements.

    2. Developmental functions are performed by the SEBI to develop activities in stock


    exchange to increase the business in stock exchange. Under this category, following
    functions are performed by SEBI:
     Promoting training of intermediaries of the securities market
     Promote activities of stock exchange by adopting flexible methods such as internet
    trading
     Initial public offer of primary market is permitted through stock exchange.

    3. Regulatory functions are performed by SEBI to regulate the business in stock


    exchange.

     SEBI registers and regulates the working of mutual funds and other investment
    options.
     SEBI regulates takeover of the companies.
     SEBI conducts inquiries and audit of stock exchanges.

    Now, let’s understand the organizational structure of SEBI.

    Organizational Structure of SEBI

     SEBI is a corporate sector divided into five departments. Each department is headed
    by an executive director.
     The current chairman of SEBI is U.K. Sinha.
     The head office of SEBI is in Mumbai and it has branch office in Kolkata, Chennai
    and Delhi.
     There are two advisory committees to deal with primary and secondary markets.

    After reading this post, you must have got a fair idea about the Securities Exchange Board of
    India (SEBI). Stay tuned for more updates on general awareness articles.

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