Securities and Exchange Board of India ( SEBI )

Securities and Exchange Board of India ( SEBI )

  • SEBI is a statutory regulatory body that was established by the government of India in 1992 for protecting the interest of investors, investing in the Securities market. ( जो investor, invest कर रहे उन investor को protect करना| SEBI also regulates how to stock market and mutual funds function.

  1. SEBI head quater Bandra Kurla Complex ( Mumbai )
  2. Establish on 12 April 1988 by the Ministry of Finance.
  3. Become a statutory ( वैज्ञानिक )body under the SEBI Act object June 1992.
Important Objective of S.E.B.I
  • To Regulate the activity of the Stock Exchange.
  • Investor Protection = Protecting the interests( हित ) of investors by providing guidance and ensuring that the investment done is safe.
  • Preventing fraudulent practises and malpractices that are related to trading and regulation of the activities of the Stock exchange. (Trading के Time लोग की अफवाह / गलत जानकारी के से भी बचाती है और रोकती है।)
  •  To develop a Code of Conduct to the financial intermediaries such as underwriters, Broker etc. Investor और Company के बीच में जो deal हो रही है to logo के लिए क्या आचार संहिता  लगेगी  किस तरीके से काम और उनके norms|
  • To maintain a balance between statutory regulations and Self-regulation.

Function of S.E.B.I

There are three types:-

       1.)Protective function

  • Prohibits insider trading
  • Check Price Rigging
  • Promoting Practices over price, ex- Harshal Mehta Scam
  • Financial education Provider

2.)Regulatory function

  • Defined the rules and regulations are formed guidelines and codes of conduct that should be followed by the corporates as the financial intermediaries as well ex- Stockbrokers, and merchant brokers…
  • Conducting inquiries and audits of stock. (यही की stock में को घपला तो नहीं।)

   3.)Development functions

  • Training of intermediaries who are a part of the security market.
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