Role Functions Of Sebi Inward Monitoring The Stock Exchange

What is SEBI?

Securities as well as Exchange Board of India (SEBI) is an apex trunk for overall evolution as well as regulation of the securities market. It was laid upwards on Apr 12, 1988. To commence with, SEBI was laid upwards equally a non-statutory body. Later on it became a statutory trunk nether the Securities Exchange Board of Bharat Act, 1992. The Act entrusted SEBI amongst comprehensive powers over practically all the aspects of capital market operations.

Picture of SEBI Bhavan inwards Mumbai. Image Credits © Paul Noronha.

Role Functions of SEBI

The role or functions of SEBI are discussed below.

1. To protect the interests of investors through proper teaching as well as guidance equally regards their investment inwards securities. For this, SEBI has made rules as well as regulation to live on followed past times the fiscal intermediaries such equally brokers, etc. SEBI looks afterward the complaints received from investors for fair settlement. It too issues booklets for the guidance as well as protection of small-scale investors.
2. To regulate as well as command the business on stock exchanges as well as other safety markets. For this, SEBI keeps supervision on brokers. Registration of brokers as well as sub-brokers is made compulsory as well as they are expected to follow certainly rules as well as regulations. Effective command is too maintained past times SEBI on the working of stock exchanges.
3. To brand registration as well as to regulate the functioning of intermediaries such equally stock brokers, sub-brokers, portion transfer agents, merchant bankers as well as other intermediaries operating on the securities market. In addition, to render suitable preparation to intermediaries. This business office is useful for salubrious atmosphere on the stock telephone commutation as well as for the protection of small-scale investors.
4. To register as well as regulate the working of usual funds including UTI (Unit Trust of India). SEBI has made rules as well as regulations to live on followed past times usual funds. The purpose is to maintain effective supervision on their operations & avoid their unfair as well as anti-investor activities.
5. To promote self-regulatory scheme of intermediaries. SEBI is given broad statutory powers. However, self-regulation is improve than external regulation. Here, the business office of SEBI is to encourage intermediaries to shape their professional person associations as well as command undesirable activities of their members. SEBI tin too usage its powers when required for protection of small-scale investors.
6. To regulate mergers, takeovers as well as acquisitions of companies inwards social club to protect the involvement of investors. For this, SEBI has issued suitable guidelines as well as therefore that such mergers as well as takeovers volition non live on at the terms of small-scale investors.
7. To prohibit fraudulent as well as unfair practices of intermediaries operating on securities markets. SEBI is non for interfering inwards the normal working of these intermediaries. Its business office is to regulate as well as command their objectional practices which may impairment the investors as well as salubrious increase of majuscule market.
8. To number guidelines to companies regarding majuscule issues. Separate guidelines are prepared for commencement world number of novel companies, for world number past times existing listed companies as well as for commencement world number past times existing someone companies. SEBI is expected to send query as well as let on data useful to all marketplace players (i.e. all buyers as well as sellers).
9. To send inspection, inquiries & audits of stock exchanges, intermediaries as well as self-regulating organizations as well as to cause got suitable remedial measures wherever necessary. This business office is undertaken for orderly working of stock exchanges & intermediaries.
10. To bound insider trading activeness through suitable measures. This business office is useful for avoiding undesirable activities of brokers as well as securities scams.