Powers Of Sebi - Securities Together With Telephone Substitution Board Of India

Powers of SEBI

The of import powers of SEBI (Securities too Exchange Board of India) are:-

Figure 1. Image or moving painting of SEBI's official logo.

1. Powers relating to stock exchanges & intermediaries

SEBI has broad powers regarding the stock exchanges too intermediaries dealing inwards securities. It tin inquire data from the stock exchanges too intermediaries regarding their business transactions for inspection or scrutiny too other purpose.

2. Power to impose monetary penalties

SEBI has been empowered to impose monetary penalties on capital market intermediaries too other participants for a arrive at of violations. It tin fifty-fifty impose pause of their registration for a curt period.

3. Power to initiate actions inwards functions assigned

SEBI has a ability to initiate actions inwards watch to functions assigned. For example, it tin number guidelines to dissimilar intermediaries or tin innovate specific rules for the protection of interests of investors.

4. Power to regulate insider trading

SEBI has ability to regulate insider trading or tin regulate the functions of merchant bankers.

5. Powers nether Securities Contracts Act

For effective regulation of stock exchange, the Ministry of Finance issued a Notification on xiii September, 1994 delegating several of its powers nether the Securities Contracts (Regulations) Act to SEBI.

SEBI is likewise empowered yesteryear the Finance Ministry to nominate 3 members on the Governing Body of every stock exchange.

6. Power to regulate concern of stock exchanges

SEBI is likewise empowered to regulate the concern of stock exchanges, intermediaries associated amongst the securities marketplace every bit good every bit usual funds, fraudulent too unfair merchandise practices relating to securities too regulation of acquisition of shares too takeovers of companies.