SEBI, which stands for Securities and Exchange Board of India, is the regulatory body that oversees and regulates the securities market in India. It operates under the jurisdiction of the Ministry of Finance, Government of India. The primary objective of SEBI is to protect the interests of investors and promote the development and regulation of the securities market.

Regulatory Authority of SEBI

SEBI functions as an autonomous and independent regulatory authority with statutory powers. It derives its regulatory authority from the Securities and Exchange Board of India Act, 1992, which empowers it to regulate various aspects of the securities market and enforce compliance with its regulations.

SEBI’s Powers and Responsibilities

SEBI has been vested with extensive powers to regulate and oversee the securities market in India. Some of its key powers and responsibilities include:

• Licensing and Registration: SEBI has the authority to grant licenses and register various market intermediaries, such as stockbrokers, depository participants, mutual funds, credit rating agencies, and more. It ensures that these entities meet the prescribed standards and comply with the regulatory framework.
• Regulatory Framework: SEBI formulates rules, regulations, and guidelines to govern the conduct of market participants. It establishes standards for market operations, disclosure requirements, corporate governance practices, and investor protection measures.
• Market Surveillance: SEBI monitors the activities of market intermediaries, listed companies, and other market participants to detect any market manipulation, insider trading, or fraudulent practices. It conducts investigations and takes necessary enforcement actions to maintain market integrity.
• Investor Protection: SEBI has a crucial role in safeguarding the interests of investors. It ensures that investors receive accurate and timely information, promotes fair and transparent market practices, and establishes mechanisms for grievance redressal and investor education.
• Regulation of Securities Offerings: SEBI regulates public offerings of securities by companies through the issuance of prospectuses, ensuring adequate disclosure and investor protection. It also oversees the functioning of the primary market and regulates fundraising activities.

Collaboration and Coordination

SEBI works in close collaboration with various market participants, industry bodies, and other regulatory agencies to achieve its objectives. It maintains effective coordination with stock exchanges, depositories, self-regulatory organizations, and government departments to ensure a seamless regulatory environment.

SEBI also collaborates with international regulatory bodies and exchanges to enhance cooperation, share best practices, and align with global regulatory standards. This enables SEBI to stay updated with international developments and contribute to the development of global regulatory frameworks.

Independent Decision-Making

SEBI operates independently and exercises its regulatory functions without any interference from external entities. It has the authority to take prompt and effective action against any violations of securities laws and regulations.

SEBI’s governance structure includes a Chairman and a Board comprising eminent professionals and government representatives. The Board makes decisions on policy matters and regulatory actions, ensuring transparency and accountability in the functioning of SEBI.

by Astrobulls Research Pvt Ltd.