Securities and Exchange Board of India - SEBI

What is SEBI


The Securities and Exchange Board of India (SEBI) is the most important regulatory body in the India. SEBI is a government department that works to control the stock market. SEBI (securities and exchange board of India) the Indian securities and regulation board was established in the form of a non-statutory regulatory body on 12 April 1988.  After the establishment of SEBI, on January 30, 1992 the Indian government gave statutory powers to SEBI through the SEBI Act, 1992.

SEBI’s headquarter in Bandra Kurla Complex in Mumbai and there are some regional offices of SEBI, which are located in New Delhi, Chennai, Kolkata and Ahmedabad. Apart from this, there are local offices in Bangalore, Jaipur, Guwahati, Bubaneshwar, Patna, Kochi, and Chandigarh.



There are 6 members in SEBI’s entire management of these, one member is the chairman, and the other five members are of separate work. As you know that there is a chairman in SEBI which is nominated by the Central Government of IndiaTheir tenure takes place for 3 years or till the age 65 years, remaining five members are selecting by the government of India. Two of these, members are knowledgeable of the ministry of finance and remaining two members are nominated by Central Government of India. The remaining one members are from RBI, they are selected from the RBI officials.

When SEBI was established in 1988, SEBI’s initial capital was 7.5 crore rupees and this capital is invested by its promoters (IDBI, ICICI, and IECI).








 Functions of SEBI


 

1. Protecting the interest of investors in the stock market:- Many investors buy and sell shares of many companies in the stock market, if something goes wrong with such people then investors can register their complaint in SEBI. SEBI’s first task is to protect the interest of investors.


2. Developing a capital market :- Capital market is that market which provides loans to companies for a short period of time or more. Companies or industrial houses can take loans through capital market then developing such a market is also the main task of SEBI.


3. Bringing all parts of the stock market under the framework of SEBI :- There are many parts of the stock market, like companies, investors, brokers of companies all these are brought under SEBI or subject to the SEBI rule also one of the main functions of SEBI, So that the complete stock market can run with the rules made by SEBI and not be deceived with any investor.


4. Preventing unethical business in the stock market :- Any business which is unethical in the stock market, the company that is doing wrong business and prohibiting the sale or sale of any company’s shares in unethical way in the market place, so SEBI prevent its customers this type of illegal business.


5. To stop insider trading :- Insider trading means intimate business, many times it happens that many companies who are issuing their shares, in such a way that the officials of the companies who are aware of the secret business of that company or , if you know some secret information, then in this way, those officers make more profit through that stock. To stop this insider trading is also a major task of SEBI.


6. Registration of mutual fund :- Many schemes are launched in the country in which a lot of people invest money together and put it in the stock market or share market. Registration of such types funds and taking care of it, is also SEBI’s work.


Mainly we can say that SEBI takes care of every activity in the stock market. And this broker, do not cheat with the investor. It is the main purpose of SEBI to stop all these things. There are many functions of SEBI, its main task is to protect the interest of investors and to improve the share market infrastructure through continuous technology.



Rights of SEBI

(i) Registration and control of stock exchange.

(ii) Checking the stock exchange accounts after a certain time.

(iii) To verify the broker’s financial accounts.

(iv) To register the company in stock exchange market.

(v)  Regulating the registration of brokers.




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