 |
| Security and Exchange Board of India (SEBI) |
The Securities and Exchange Board of India (SEBI) is the
regulatory authority for the securities and commodities market in India.
Established in 1992, SEBI's primary role is to protect the interests of
investors, promote the development of, and regulate the securities market.
Here's an overview of SEBI and its functions:
Objectives of SEBI
1. Investor Protection: Ensuring that investors' interests are
safeguarded by enforcing fair practices and transparency in the securities
market.
2. Market Regulation: Regulating and overseeing the functioning of stock
exchanges, brokers, and other market intermediaries to ensure market integrity.
3. Market Development: Promoting the development and growth of the
securities market by encouraging fair practices and innovation.
4. Preventing Fraud: Implementing
measures to prevent market manipulation, insider trading, and other forms of
financial fraud.
Key Functions of SEBI:
1. Regulation of Exchanges and Intermediaries:
- SEBI regulates stock exchanges,
brokers, sub-brokers, and other intermediaries to ensure they operate fairly and transparently.
- It sets rules and guidelines
for their functioning and oversees their adherence to these norms.
2. Protection of Investor Interests:
- SEBI works to ensure that investors
are provided with adequate and accurate information to make informed decisions.
- It has the authority to
investigate and take action against fraudulent activities and market
misconduct.
3. Registration and Licensing:
- SEBI is responsible for the
registration and licensing of market participants, including mutual funds,
portfolio managers, and investment advisors.
- It ensures that these entities
meet the required standards and comply with
regulatory norms.
4. Regulation of Public Offerings:
- SEBI regulates the process of
Initial Public Offerings (IPOs) and Follow-on Public Offers (FPOs), ensuring
that companies adhere to disclosure requirements and other regulatory
standards.
5. Market Surveillance:
- SEBI monitors trading
activities and market trends to detect irregularities and prevent market
manipulation.
- It uses surveillance systems
and technology to track market behavior and enforce compliance.
6. Investor Education and Awareness:
- SEBI undertakes initiatives to
educate investors about financial markets, investment options, and their
rights.
- It promotes financial literacy
and helps investors understand market
dynamics.
7. Development of Market Infrastructure:
- SEBI supports the development and
enhancement of market infrastructure, including trading platforms and
settlement systems.
- It aims to make trading more efficient and accessible.
Organizational Structure:
- Board of SEBI: The board comprises a
chairman and several other members, including representatives from the finance
ministry, the Reserve Bank of India (RBI), and other sectors.
- Regional Offices: SEBI has
regional offices across India to oversee and address market issues at the local
level.
Powers:
SEBI has the
authority to:
-Impose penalties and fines on entities and individuals for violations.
-Suspend or cancel the registration of market intermediaries.
-Issue directives and guidelines to regulate market practices.
-Investigate and take action against cases of fraud and market
manipulation.
In summary, SEBI plays a crucial
role in ensuring the smooth functioning of India's securities market by
regulating market participants, protecting investors, and promoting market
integrity and development.