Securities and Exchange Board of India

SEBI (Securities and Exchange Board of India)

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The SEBI (Securities and Exchange Board of India) is the Indian stock market regulator. The Government of India appointed the SEBI. In 1992 the Securities and Exchange Board of India became a statutory body. A statutory body means a body/agency which is created by an act & gets its powers from that act.

SEBI Headquarter = SEBI Bhavan, Mumbai.

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Article about – What is stock market ?

Functions of Securities and Exchange Board of India

  • It is the duty of the SEBI to safeguard the interests of investors in the securities market, also known as the stock market.
  • To promote the development of the securities market in the interest of investors.
  • Regulating the business of stock exchanges and any other securities markets in India.
  • Registering and regulating the activities of stockbrokers, sub-brokers, share transfer agents, and bankers involved in the securities market.
  • Registering and regulating the workings of the firms related to ‘Mutual Funds’ and ‘Venture Capital Funds’.
  • Prohibiting fraud and unfair trade practices in the securities market. Prohibiting insider trading in the stock market.
  • Promoting investor’s education and training of the intermediaries of securities market.

Source = official website ⇾ SEBI

Securities and Exchange Board of India
SEBI Headquarter, BKC (Bombay Kurla Complex), Mumbai

Power of SEBI

  • SEBI can investigate matters related to the securities market and persons involved. It can conduct searches.
  • The board is a quasi-judicial body, meaning it can pass orders related to the disputes that arise in the stock market. It acts like a court in such cases to resolve disputes. It can pass orders and judgments in its judicial capacity.
    • The judgments passed by the SEBI can be challenged in the Securities Appellate Tribunal (SAT).
    • SAT is also a statutory body.
  • The Securities and Exchange Board of India can create rules and regulation for the smooth functioning of the securities market.
  • The Board can summon a person to investigate matters regarding the securities market. It can impose penalties or fines on entities and individuals if they violate the laws, rules and regulations of the securities market.
  • If a company seeks to register itself or aims to be listed on a stock exchange, such as the National Stock Exchange (NSE) or the Bombay Stock Exchange (BSE), it must obtain approval from the Securities and Exchange Board of India (SEBI).

The Securities and Exchange Board of India (SEBI) is the key regulatory agency of the Government of India, tasked with overseeing and regulating the securities market. It serves as the Stock Market Supervisor and monitoring agency, ensuring the smooth functioning of the market and protecting the interests of investors. SEBI aims to promote the development of the securities market and to regulate the activities of intermediaries such as stockbrokers, merchant bankers, and mutual funds. It also works to prevent fraudulent and unfair trade practices, ensuring transparency and integrity in the market.