The Securities and Exchange Board of India (SEBI) is the regulatory body for the securities market in India. It was established on April 12, 1992, under the Securities and Exchange Board of India Act, 1992. SEBI’s primary mandate is to protect the interests of investors in securities and to promote the development of the securities market in India. Here is a detailed note on the functions and responsibilities of SEBI:
- Regulation and Supervision of Securities Market:
SEBI is responsible for regulating and supervising the securities market in India. SEBI’s regulatory functions include granting licenses to market intermediaries, such as brokers, depositories, and mutual funds, and setting regulatory norms for the securities market. SEBI also conducts inspections and audits of market intermediaries to ensure compliance with regulations.
- Protection of Investors:
SEBI’s primary mandate is to protect the interests of investors in securities. SEBI ensures that investors are provided with accurate and timely information about companies listed on stock exchanges, and that market intermediaries act in the best interests of investors. SEBI also investigates cases of insider trading and market manipulation.
- Promotion of Market Development:
SEBI aims to promote the development of the securities market in India. SEBI’s developmental functions include promoting the participation of retail investors in the securities market, encouraging the listing of new companies on stock exchanges, and supporting the development of new financial products.
- Enforcement of Regulations:
SEBI has the power to enforce regulations related to the securities market. SEBI can impose penalties on market intermediaries for non-compliance with regulations and can also initiate legal proceedings against market participants for violations of securities laws.
- Research and Analysis:
SEBI conducts research and analysis on various aspects of the securities market, including market trends and developments in other countries. SEBI also publishes various reports, such as the Annual Report and the Report on the Working of Mutual Funds in India.
- Education and Awareness:
SEBI aims to educate investors about the securities market and their rights and responsibilities as investors. SEBI conducts investor awareness programs and publishes various educational materials, such as brochures and videos, to educate investors about the securities market.
Conclusion:
SEBI plays a crucial role in regulating and supervising the securities market in India. SEBI’s functions and responsibilities include regulating and supervising the securities market, protecting the interests of investors, promoting market development, enforcing regulations, conducting research and analysis, and educating investors. SEBI is an essential institution for the functioning of the securities market in India and plays a crucial role in ensuring the stability and growth of the securities market.