SEBI, the Securities and Exchange Board of India, is the regulatory authority responsible for overseeing and regulating the securities market in India. It performs various functions to ensure the smooth functioning of the market and protect the interests of investors. Let’s delve into the key functions of SEBI in more detail:
1. Regulation and Oversight
SEBI’s primary function is to regulate and oversee all intermediaries and participants operating in the securities market. It establishes rules and regulations to govern their conduct, ensuring fair and transparent practices. SEBI’s oversight includes entities such as stockbrokers, depository participants, merchant bankers, mutual funds, and credit rating agencies.
2. Investor Protection
SEBI places significant emphasis on safeguarding the interests of investors. It ensures that investors receive accurate and adequate information to make informed investment decisions. SEBI mandates disclosure norms for companies, promotes transparency in financial reporting, and enforces strict corporate governance standards to protect shareholders’ rights.
3. Regulatory Framework
SEBI plays a vital role in formulating and implementing the regulatory framework for the securities market. It develops rules and regulations that govern various aspects, including securities offerings, insider trading, takeovers, delisting of securities, and more. SEBI continually revises and updates these regulations to align with market dynamics and promote market integrity.
4. Market Surveillance
SEBI conducts rigorous surveillance of the securities market to detect any market manipulation, insider trading, or fraudulent activities. It deploys advanced surveillance systems and tools to monitor trading patterns, volumes, and price movements. SEBI investigates any suspicious activities and takes necessary enforcement actions to maintain market integrity.
5. Development of the Market
SEBI strives to promote the development and growth of the securities market in India. It introduces measures to attract domestic and foreign investments, encourages innovation, and facilitates market expansion. SEBI supports the introduction of new financial products, such as exchange-traded funds (ETFs) and real estate investment trusts (REITs), to provide diverse investment opportunities to investors.
6. Education and Awareness
SEBI plays a crucial role in educating and creating awareness among investors. It conducts investor education programs, disseminates information through various mediums, and promotes financial literacy. SEBI aims to empower investors with knowledge and skills to make informed investment decisions and protect themselves from fraudulent schemes.
by Astrobulls Research Pvt Ltd.