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    SEBI - Structure, Objectives, Function

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    Shubham Verma
    SEBI was established in 1988 to encourage orderly growth of the securities market and protect investors. Its objectives are to regulate and develop the securities market and protect investors. SEBI regulates stock exchanges, brokers, and other market intermediaries. It also educates investors and prohibits unfair trading practices like insider trading. SEBI aims to make the market efficient, transparent and investor friendly through registration of players, research, training, and flexible approaches.

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    SEBI - Structure, Objectives, Function

    Uploaded by

    Shubham Verma
    18 views12 pages
    SEBI was established in 1988 to encourage orderly growth of the securities market and protect investors. Its objectives are to regulate and develop the securities market and protect investors. SEBI regulates stock exchanges, brokers, and other market intermediaries. It also educates investors and prohibits unfair trading practices like insider trading. SEBI aims to make the market efficient, transparent and investor friendly through registration of players, research, training, and flexible approaches.

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    SEBI – Structure, Objectives , Function ,

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    SEBI was established in 1988 to encourage orderly growth of the securities market and protect investors. Its objectives are to regulate and develop the securities market and protect investors. SEBI regulates stock exchanges, brokers, and other market intermediaries. It also educates investors and prohibits unfair trading practices like insider trading. SEBI aims to make the market efficient, transparent and investor friendly through registration of players, research, training, and flexible approaches.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    18 views12 pages

    SEBI - Structure, Objectives, Function

    Uploaded by

    Shubham Verma
    SEBI was established in 1988 to encourage orderly growth of the securities market and protect investors. Its objectives are to regulate and develop the securities market and protect investors. SEBI regulates stock exchanges, brokers, and other market intermediaries. It also educates investors and prohibits unfair trading practices like insider trading. SEBI aims to make the market efficient, transparent and investor friendly through registration of players, research, training, and flexible approaches.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
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    SEBI – structure, objectives , function , regulatory

    developments

    The Securities and Exchange Board of India was


    established in 1988 in order to encourage an orderly
    and healthy growth of the securities market. SEBI was
    set with an overall objective of investor protection
    and to promote the development and regulation of
    the functions of the securities market. The following
    are the listed objectives.
    (i) Regulation: The main objective of SEBI was to
    regulate the functioning of the stock exchange
    and the securities market. It aims at providing
    a place where the issuers of securities (i.e.
    companies) can raise funds in an easy and
    confident manner.
    (ii) Protection: SEBI educates the investors by
    providing them valuable information regarding
    various securities and companies. It provides
    them with the guidelines related to efficient
    investment. It provides them adequate and
    reliable information about the companies and
    thereby, helps them in taking wise and
    informed investment decisions.
    (iii) Prevention: To combat the malpractice in
    trading of securities was the basic reason for
    the establishment of SEBI. Malpractice such as
    insider trading, violation of rules and
    regulations, non-adherence to Companies Act,
    etc. erodes the confidence of investors. SEBI
    aims at checking these malpractice by creating
    a balance between the self regulation of a
    business and the legal statutory regulations.
    (iv) Code of Conduct: Through efficient
    regulation, SEBI aims at developing a code of
    conduct for fair trade practices by
    intermediaries such as brokers, merchant
    bankers, underwriters, etc. This helps in
    making them competitive and professional.
    To attain the aforementioned objectives, SEBI
    perform 3 main functions namely, Regulatory,
    Development and Protective functions. The
    following are the functions performed by SEBI.
    (i) Regulatory Functions
    • Registration: One of the regulatory functions
    performed by SEBI is the registration of the
    brokers, sub-brokers, agents and other players
    in the market. Registration of collective
    mutual schemes and Mutual Funds is also
    done by SEBI.
    • Regulating the Work: SEBI regulates the
    working of the stock brokers, underwriters,
    merchant bankers and other market
    intermediaries. It frames rules and regulations
    for the working of the intermediaries. SEBI
    also regulates the takeover bids by the
    companies. It conducts regular enquires and
    audits of stock exchange and intermediaries.
    (ii) Development Functions
    Training: SEBI promotes the training and
    development of the intermediaries of the
    securities market in order to promote
    healthy growth of the securities market.
    • Research: By conducting research in the
    required and important areas of the securities
    market, SEBI publishes useful information. This
    helps the investors and other market players to
    make wise investment decisions.
    • Flexible Approach: SEBI has adopted a flexible
    and adaptive approach such permitting
    internet trading, IPOs, etc. Such measures
    promote the development of capital market.
    (iii) Protective Functions
    Prohibition: SEBI prohibits fraudulent and unfair
    trade practices. It prevents the spreading of
    misleading and manipulative statements which
    are likely to affect the working of the securities
    market. SEBI educates the investors by providing
    them valuable information regarding various
    securities and companies so as to enable them
    to make wise investment decisions.
    • Checks on Insider Trading: Insider trading
    refers to a situation where an individual
    connected with the company leaks out crucial
    information regarding the company. Such
    information may adversely affect its share
    prices. SEBI keeps a strict check on such
    insider trading.
    • Promotion and Protection: SEBI encourage fair
    trade practices and promotes a code of
    conduct for the intermediaries. It undertakes
    step for investor protection and education. It
    also checks the manipulation of price of
    securities

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