Role Of SEBI
Securities and Exchange Board of India (SEBI) is an apex body, which maintains and regulates our Capital Market. It was established in the year 1988 by the Indian government. Later in the year 1992, it received the statutory powers and the status of the fully autonomous body.
SEBI is the watchdog of the financial markets in India. It is the regulatory body which oversees the developments taking place in the Indian markets. It acts as the regulator in helping protect investor's interest investment. It has framed a set of regulations, bye-laws and surveillance systems so as to provide the end users with safety and transparency while dealing in securities. It has introduced many regulatory measures and code of conduct for various intermediaries which include Portfolio Managers, Brokers and Sub-Brokers, Underwriters, Merchant Bankers and so on.
What is the role of SEBI in financial markets?
1. Restricts Illegal Practices - It forbids illegal and fraudulent practices of the firm which operate in the securities market.
2. Safeguard Investor’s Interest - It protects an investor’s interest in the Capital Market through guidance and proper education. So if you have any complaint about anything related to Capital Market, you can simply visit sebi.gov.in to register your complaint, in the manner shown below:
3. Regulate working of Exchanges - It regulates and keeps a check on the working of Stock Exchanges and other aspects of the Securities Market.
4. Monitor the workings of Mutual Funds - It monitors and regulates the working of Mutual Funds. It keeps a tight supervision on their business operations and protects investors from any unfair practices.
5. Monitor the functioning of Intermediaries - Keeps a tight check on the functioning of the intermediaries like Merchant Bankers, StockBrokers and other intermediaries present in the Capital Market.
6. Regulate Takeovers and Acquisitions - They issue guidelines to regulate Takeovers, Mergers, and Acquisitions of firms to protect investor’s interest.
7. Prohibition of Insider Activity - It prohibits insider activity and also restricts the undesirable practice of brokers and other agents in the Capital Market.
8. Conducting Audit - It conducts an audit, inspection and other suitable measures to keep a check on the workings of Stock Exchanges and other Intermediaries.
SEBI has played a really important role in regulating the capital markets and in the development of our overall economy.It has also played an active role in keeping a tight check on the scams and scandals in our economy.
There was a gradual increase in the number of scams held in our country since 1990’s and it was a common phenomenon every year in those days. However, the number of scams has also come down gradually in the last few years
SEBI has till date played a significant role in maintaining efficiency and transparency in the economy and has also introduced various products fulfilling the need of market participants.
