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What is SEBI and how does it work?

What is SEBI and how does it work? SEBI, full form of which is Securities and Exchange Board of India. It was established on April 12, 1988 through a
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 What is SEBI and how does it work?

What is SEBI and why was it established?

SEBI, full form of which is Securities and Exchange Board of India. It was established on April 12, 1988 through a resolution of the Government of India, and received statutory powers on January 30, 1992 through the Securities and Exchange Board of India Act, 1992 (15 of 1992). It was established to regulate the securities market in India and protect the interests of investors.

Main functions of SEBI

  • Investor Protection: The main objective of SEBI is to protect the interests of investors investing in securities, so that they are protected from fraud and market manipulation.
  • Regulation of the Market: SEBI is responsible for regulating the securities market, which includes controlling the activities of stock exchanges, brokers and other intermediaries.
  • Development of the Market: SEBI aims to promote the development of the capital market, which helps the economy to raise funds.
  • Transparency and Credibility: SEBI makes rules and regulations to maintain transparency and credibility in the market, so that investors get the right information and can invest safely.
  • Implementation of various reforms: SEBI has introduced various rules and guidelines from time to time to bring comprehensive reforms in the capital market.

Some key points of SEBI

  • Jurisdiction: SEBI's jurisdiction is limited to the securities and commodity market of India.
  • Headquarters: SEBI is headquartered in Mumbai, and has regional offices in New Delhi, Kolkata, Chennai and Ahmedabad.
  • Objective of SEBI: SEBI's objective is to ensure a safe, transparent and efficient securities market, which enables investors to have confidence and invest.
  • Grievance Redressal: SEBI also provides a system for hearing and redressing investor grievances.
  • Powers and Functions: SEBI has the authority to investigate and take action against fraudulent and unfair activities in the market, as well as to redress grievances of investors and educate them.
  • Structure of SEBI: SEBI consists of a chairman and a few members, who work together with representatives from the central government, RBI and the Ministry of Finance.
  • Importance of SEBI: SEBI plays a vital role in the stability and growth of India's financial ecosystem, as it protects the interests of investors and helps businesses raise capital.