SEBI
Introduction
SEBI is also known as the Security and Exchange Board of India was
established on 12 April 1992 through the SEBI Act, 1992. It was a non-
statutory body established to regulate the securities market. The
headquarters of the board is situated in Bandra Kurla Complex, Mumbai.
SEBI helps in regulating the Indian Capital Market by protecting the interest
of investors and establishing the rules and regulations for the development
of the capital market.
SEBI or the Security and Exchange Board of India is a regulatory body
controlled by the Government of India to regulate the capital and security
market. Before the Security and Exchange Board of India, the Controller of
Capital Issues was the regulating body to regulate the market which was
controlled by the Capital Issues (Control) Act, 1947.
Meaning of SEBI
SEBI stands for the "Securities and Exchange Board of India." SEBI is the
regulatory authority in India responsible for overseeing and regulating the
securities and capital markets in the country. Its primary objective is to protect the
interests of investors and ensure the integrity and efficiency of the Indian securities
market. SEBI was established in 1988 and was granted statutory powers in 1992
through the SEBI Act.
Majorly, SEBI controls the issuers of securities, the investors and the market
intermediaries. The Board draft regulations and statutes under its legislative
authority, also pass rulings and orders under its judicial capacity and operate
investigations in its executive limits. SEBI works as a barrier to avoid
malpractices related to the stock market by establishing a code of conduct and
promoting the healthy functioning of the stock exchange. Initially, SEBI didn’t
have the authority to regulate the stock exchange, but in 1992 the Union
Government gave statutory powers to SEBI through the SEBI Act, 1992.
, Reasons for the Establishment of SEBI
During the fall of the 1970s and the rise of the 1980s, the people of India were
preferring to work in the Capital Market as the market was trending. Without
any authority, problems like unofficial private placements, the rigging of prices,
unofficial self-styled merchant bankers started violating the rules and
regulations of the stock exchange which caused delays in the delivery of
shares.
The Government felt an immediate need to establish a regulatory body to
regulate its working and to find solutions for all the problems the market was
going through, as the people were losing interest in the market. This led to the
establishment of the Security and Exchange Board of India.
OBJECTIVES OF SEBI
The main objective of SEBI is protection of the interest of investors, promotion
of the development of stock exchange, and regulation the activities of stock
market. The objectives of SEBI are as follows:
Regulation of the activities of stock market.
Protection of the rights of investors and ensuring safety of their investment.
Prevention of fraudulent and malpractices by having a balance between self-
regulation of business and its statutory regulations.
Regulation and development of a code of conduct for the intermediaries like
underwriters, brokers, etc.
Working for the regulation of the securities market by preventing any
malpractices.
Promoting the development of the securities market with proper and fair
functioning by checking over brokers, underwriters, etc.
Purpose and Role of SEBI
The main purpose of the formation of SEBI was to keep a check on
malpractices and protect the interest of investors. Simply put, SEBI was set up
to fulfil the needs of three groups, which are:
Introduction
SEBI is also known as the Security and Exchange Board of India was
established on 12 April 1992 through the SEBI Act, 1992. It was a non-
statutory body established to regulate the securities market. The
headquarters of the board is situated in Bandra Kurla Complex, Mumbai.
SEBI helps in regulating the Indian Capital Market by protecting the interest
of investors and establishing the rules and regulations for the development
of the capital market.
SEBI or the Security and Exchange Board of India is a regulatory body
controlled by the Government of India to regulate the capital and security
market. Before the Security and Exchange Board of India, the Controller of
Capital Issues was the regulating body to regulate the market which was
controlled by the Capital Issues (Control) Act, 1947.
Meaning of SEBI
SEBI stands for the "Securities and Exchange Board of India." SEBI is the
regulatory authority in India responsible for overseeing and regulating the
securities and capital markets in the country. Its primary objective is to protect the
interests of investors and ensure the integrity and efficiency of the Indian securities
market. SEBI was established in 1988 and was granted statutory powers in 1992
through the SEBI Act.
Majorly, SEBI controls the issuers of securities, the investors and the market
intermediaries. The Board draft regulations and statutes under its legislative
authority, also pass rulings and orders under its judicial capacity and operate
investigations in its executive limits. SEBI works as a barrier to avoid
malpractices related to the stock market by establishing a code of conduct and
promoting the healthy functioning of the stock exchange. Initially, SEBI didn’t
have the authority to regulate the stock exchange, but in 1992 the Union
Government gave statutory powers to SEBI through the SEBI Act, 1992.
, Reasons for the Establishment of SEBI
During the fall of the 1970s and the rise of the 1980s, the people of India were
preferring to work in the Capital Market as the market was trending. Without
any authority, problems like unofficial private placements, the rigging of prices,
unofficial self-styled merchant bankers started violating the rules and
regulations of the stock exchange which caused delays in the delivery of
shares.
The Government felt an immediate need to establish a regulatory body to
regulate its working and to find solutions for all the problems the market was
going through, as the people were losing interest in the market. This led to the
establishment of the Security and Exchange Board of India.
OBJECTIVES OF SEBI
The main objective of SEBI is protection of the interest of investors, promotion
of the development of stock exchange, and regulation the activities of stock
market. The objectives of SEBI are as follows:
Regulation of the activities of stock market.
Protection of the rights of investors and ensuring safety of their investment.
Prevention of fraudulent and malpractices by having a balance between self-
regulation of business and its statutory regulations.
Regulation and development of a code of conduct for the intermediaries like
underwriters, brokers, etc.
Working for the regulation of the securities market by preventing any
malpractices.
Promoting the development of the securities market with proper and fair
functioning by checking over brokers, underwriters, etc.
Purpose and Role of SEBI
The main purpose of the formation of SEBI was to keep a check on
malpractices and protect the interest of investors. Simply put, SEBI was set up
to fulfil the needs of three groups, which are:
