The Securities and Exchange Board of India (SEBI) :
SEBI is the regulator of Securities market of India. The main functions of SEBI is :
Objectives of SEBI:
- To regulate the
activities of stock exchange.
- To protect the rights of
investors and ensuring safety to their investment.
- To prevent fraudulent
and malpractices by having balance between self regulation of business and its
statutory regulations.
- To regulate and develop
a code of conduct for intermediaries such as brokers, underwriters, etc.
Functions of SEBI:
The SEBI performs following important functions to meet its
objectives:
- Protective functions
- Developmental functions
- Regulatory functions.
1. Protective Functions:
These functions are performed by SEBI to protect the interest of
investor and provide safety of investment.
As protective functions SEBI performs following functions:
- SEBI Checks Price Rigging:
- SEBI Prohibits Insider trading:
- SEBI prohibits fraudulent and Unfair Trade Practices
- SEBI undertakes steps to educate investors .
- SEBI promotes fair practices and code of conduct in security market
Developmental Functions:
These functions are performed by the SEBI to promote and develop activities in stock exchange and increase the business in stock exchange. Under developmental category:
- SEBI promotes training of intermediaries of the securities market,
- SEBI tries to promote activities of stock exchange by adopting flexible and adoptable approach .
Regulatory Functions:
These functions are performed by SEBI to regulate the business in stock exchange by framing rules and regulations and a code of conduct to regulate the intermediaries such as merchant bankers, brokers, underwriters, etc.
- SEBI registers and regulates the working of various stakeholders like stock brokers, sub-brokers, share transfer agents, trustees, merchant bankers etc.
- SEBI registers and regulates the working of mutual funds etc.
- SEBI regulates takeover, merger and aquisition-of the companies.
- SEBI conducts inquiries and audit of stock exchanges.
