SEBI, the Securities and Exchange Board of India, is vested with extensive powers to regulate and supervise the securities market in the country. These powers empower SEBI to protect investors, promote fair practices, and maintain the integrity of the market. Let’s delve into the various powers and functions of SEBI:

1. Regulatory Authority

SEBI acts as the regulatory authority for the securities market in India. It has the power to regulate and oversee all market participants, including listed companies, intermediaries, stock exchanges, and other entities involved in securities trading. SEBI formulates rules, regulations, and guidelines to ensure compliance with fair practices, transparency, and investor protection.

2. Rule-Making

SEBI has the authority to make rules and regulations for the securities market. It formulates guidelines and frameworks for various aspects of securities trading, including listing requirements, disclosure norms, corporate governance practices, investor protection measures, and market intermediaries’ conduct. These rules are designed to create a level playing field, foster transparency, and protect the interests of investors.

3. Supervision and Inspection

SEBI is empowered to conduct inspections and audits of market intermediaries, including stockbrokers, merchant bankers, and portfolio managers, to ensure compliance with regulatory requirements. It has the power to investigate any irregularities, frauds, or market manipulations and take appropriate enforcement actions. SEBI’s supervision and inspection activities play a crucial role in maintaining market integrity.

4. Licensing and Registration

SEBI has the authority to grant licenses and registrations to various market intermediaries, such as stockbrokers, depositories, mutual funds, and credit rating agencies. It sets eligibility criteria, conducts due diligence, and monitors their activities to ensure compliance with regulatory standards. SEBI’s licensing process helps maintain the quality of market participants and safeguards investor interests.

5. Investor Protection

SEBI is responsible for protecting the interests of investors in the securities market. It has the power to take actions against fraudulent activities, market manipulations, and insider trading. SEBI ensures that investors have access to accurate information, enforces fair practices, and establishes mechanisms for grievance redressal. It promotes investor education, awareness, and transparency to empower investors in making informed investment decisions.

6. Enforcement Actions

SEBI can initiate enforcement actions against individuals or entities that violate securities laws and regulations. It has the power to impose penalties, issue warnings, suspend licenses, or initiate legal proceedings to safeguard the integrity of the market. SEBI’s enforcement actions serve as a deterrent and maintain market discipline.

by Astrobulls Research Pvt Ltd.