SEBI: ROLES & RESPONSIBILITIES | செபி: பாத்திரங்கள் மற்றும் பொறுப்புகள்

SECURITIES AND EXCHANGE BOARD OF INDIA [SEBI]

                The Securities and Exchange Board of India is responsible for the regulation of the Indian financial markets. It was founded on 12th April 1988. At first, it was a non-statutory body, which meant that it did not have any control, but later in 1992, it was designated an autonomous body with statutory powers. 

It is important to know the purpose and objectives of this regulatory authority since it plays a major role in regulating the securities market in India.

WHY WAS SEBI ESTABLISHED?

                SEBI a standardized authority has been established to regulate the transactions in the share market. In the early 1980s, People in India were becoming more and more interested in the capital markets. But at the same time, many derelictions took place such as the rigging of prices, un-official brokers, un-official placement of orders, broker frauds, stealing money from investors, delay in delivering shares, price rigging, bank frauds, etc.

                As a result, people lost their confidence in the stock market. In this unexpected turn of events, the government felt it necessary to establish an authority to monitor and reduce this kind of event. In response, SEBI was set up by the Government.

WHAT IS THE MOTIVE OF SEBI?

                The main objective of SEBI is simple as we mentioned above.

1. To aviod wrong doing.
2. To protect Investors
3. To maintain a fair platform for investing.

 WHAT ARE THE FUNCTIONS OF SEBI?

The Main functions of Securities Exchange Board of India [SEBI] includes:

1. Regulation of companies listed in stock market.
2. Registration of Brokers, merchant bankers, etc.. with SEBI.
3. To develop guidelines to ensure financial market and corporations function efficiently.
4. Conducting Regular audits and Inquiries on Companies. 
5. Promote the practice of fair trading and to avoid misbehaving in the share market.
6. Encouraging companies and Investors to took active participation in the share market.
7. Create Awareness among Investors.
8. Prohibit unfair trade practices.
9.  Buy-sell mutual funds directly from AMC through a broker.  
10. Checking the price riggings and preventing insider trading. 

WHAT ARE THE ROLES AND POWERS OF SEBI? 

1. SEBI has the power to draft new legal rules to bring in the protection of the Investors.
2. It also plays an important role in regulating the registration of brokers who will deal with the Investors.
3. It has the power to get the companies listed and de-listed from any stock exchange in the country.
4. It has the right to provide or pass judgments if any unfair or malpractices get detected in the stock exchange.
5. In addition to being able to access all the stock exchange's books of records and accounts, the commission can conduct periodic reviews of the stock exchanges' operations.

These are some of the important powers of the SEBI. But it has a lot more power than the mentioned.

To know more check the official website by clicking here.

ORGANIZATIONAL STRUCTURE OF SEBI:

Nine members make up the SEBI Board-

1. There is one Chairman appointed by the Government of India.
2. Two members are officers from Union Finance Ministry.
3. One member from the Reserve Bank of India.
4. Five members were appointed by the Union Government of India.

Thus, In this post, we have learned about the Regulating body SEBI in brief. To know more check the official website by clicking here.

DISCLAIMER:-

The content of this site is only for educational purpose. I am not SEBI Registered. The motive of this site is to share my knowledge on share market to new budding investors and others who are learning about stock market

My Kind request to my site viewers, Before taking any decision please do self analysis, consult or discuss with Your financial Advisor .

மறுப்பு:-

இந்த தளத்தின் உள்ளடக்கம் கல்வி நோக்கத்திற்காக மட்டுமே. நான் செபியில் பதிவு செய்யப்படவில்லை. இந்த தளத்தின் நோக்கம், பங்குச் சந்தையைப் பற்றிய எனது அறிவை புதிய வளரும் முதலீட்டாளர்கள் மற்றும் பங்குச் சந்தையைப் பற்றி அறிந்துகொள்ளும் மற்றவர்களுக்குப் பகிர்வதாகும்

எனது தள பார்வையாளர்களுக்கு எனது அன்பான வேண்டுகோள், எந்தவொரு முடிவையும் எடுப்பதற்கு முன், சுய பகுப்பாய்வு செய்யுங்கள், ஆலோசனை செய்யுங்கள் அல்லது உங்கள் நிதி ஆலோசகருடன் விவாதிக்கவும்.