In this article we'll talk about a very prominent body that oversees the indian stock market the Securities and Exchange board of india, the role of SEBI, who operates the SEBI and major functions of sebi so let's get started.
What is SEBI? as most of you are aware SEBI is india's securities exchange board of india which regulates monitors and oversees the function of stock market but apart from that what do we know about SEBI this article will provide you with a thorough explanation of SEBI.
As the united states has a securities and exchange commission india has the SEBI. SEBI is a financial regulatory body that reports to the ministry of finance SEBI's mission is to protect the interest of investors in securities to promote the development and regulate the securities market and to deal with matters related or incidental to the securities market.
SEBI has broad regulatory investigative and enforcement powers including the authority to find the violators the semi headquarters is in mumbai's business district at the bandra kurla complex, it also has regional offices in cities like New delhi, Kolkata, Chennai and Ahmedabad and a dozen offices in the tier 2 cities of india.
SEBI meets the needs of three parties involved in the indian capital market, it was established to improve india's financial market and in order to achieve the goal it looks after the most important financial market participants and those three parties are issuers of securities investors and financial intermediaries security issuers any company that issues securities should be listed on the stock exchange issuers are organizations that help raise funds from the financial market sebi's role is to ensure that the issuance of IPOs and the FPOs is done fairly and without deception investors they contribute to the market survival because the capital market exists because traders exist investors profit from the market sebi ensures that no market gross negligence occurs against them thus, it is the role of sebi to protect investors interest and prevent unfair trade practices so that investors don't get deceived financial intermediaries.
SEBI act as the financial market intermediaries ensuring that stock market transactions take place smoothly and securely, it's purpose is to oversees the activities of financial intermediaries such as NBFCs brokers, sub brokers and so on now readers besides this they have few other roles to play as well as such as
SEBI oversees and manages the complaint division.
SEBI promotes the formation of self-regulating organization.
SEBI governs the activities of transfer agents stock brokers and motion bankers amongst others.
SEBI is in charge of the registration of new brokers financial advisors.
SEBI has taken a proactive approach to aligning disclosure requirements with international standards who operate SEBI. It's is managed by its members who are as follows the union government of india appoints the chairman two officers from the union finance ministry are members the Reserve Bank of India has one representative.
Right now SEBI is headed by Madhabi Puri Buch, the first women chairperson of SEBI as a CEO major functions of SEBI as a governing body for stock markets SEBI is entrusted with a few major functions such as proactive regulatory and developmental the proactive function refers to sebi's role in protecting the interest of investors as well as other financial participants, its protective functions include activities such as preventing price rigging, prohibiting insider trading, providing financial education and promoting ethical practices regulatory functions include the establishments of rules and regulations for financial intermediaries as well as corporations, which aids in the efficient management of the market regulatory functions governing and acquiring a company conducting stock exchange investigations and audits regulates the activities of stock brokers and merchant brokers the developmental functions refers to the actions taken by sebi to cater investors with an understanding of trading and market functions.
The following activities are included as part of the developmental functions training of security market intermediaries initiation of trading through electronic means or through the internet with the assistant of registered stock brokers and making underwriting and elective system in order to reduce the cost of issue. Keep learning!