Discuss the functions of SEBI
Ans.The Securities and Exchange Board of India (SEBI) is a statutory body established in 1992 to regulate the securities market in India. Its primary functions include:
1. Protecting the interests of investors:
SEBI ensures that investors are treated fairly and have access to all relevant information.
It regulates the activities of intermediaries such as stockbrokers, investment advisors, and merchant bankers to ensure that they act in the best interests of their clients.
It also investigates and takes action against market manipulation and other malpractices.
2. Promoting the development of the securities market:
SEBI formulates policies and regulations to promote the growth and efficiency of the securities market.
It encourages innovation and new product development in the market.
It also promotes financial literacy and investor education.
3. Regulating the securities market:
SEBI regulates the issuance of securities by companies.
It also regulates trading on stock exchanges.
It sets standards for clearing and settlement of transactions.
4. Fostering transparency and fair practices in the securities market:
SEBI promotes transparency by requiring companies to disclose all material information to investors.
It also promotes fair practices by prohibiting insider trading and other manipulative activities.
5. Overseeing the functioning of collective investment schemes (CISs):
SEBI regulates the activities of CISs such as mutual funds and pension funds.
It ensures that CISs are managed in a fair and transparent manner.
It also protects the interests of CIS investors.
6. Conducting research and development in the securities market:
SEBI conducts research on various aspects of the securities market.
It also develops new regulatory frameworks to address emerging challenges.
In addition to these core functions, SEBI also plays an important role in promoting financial inclusion and developing the corporate bond market. It also collaborates with international regulatory bodies to promote cross-border investment and address global market issues.
