Explain the objectives and functions of the SEBI.
Explain the objectives and functions of the SEBI.
The overall objective of SEBI is to protect the interests of investors, promote the development of and regulate the securities market. This may be elaborated as follows:
(i) To regulate stock exchanges and the securities industry to promote their orderly functioning.
(ii) To protect the rights and interests of investors, particularly individual investors, and to guide and educate them.
(iii) To prevent fraudulent activities and malpractices.
(iv) To regulate and develop a code of conduct for intermediaries with a view to make them competitive and professional.
Functions of SEBI
SEBI performs the following functions:
(i) Regulatory Functions
(a) Registration of brokers, sub-brokers and other players in the market.
(b) Registration of collective investment schemes and mutual funds.
(c) Regulation of stockbrokers, portfolio exchanges, underwriters, and merchant bankers and the business in stock exchanges.
(d) Regulation of takeover bids by companies.
(e) Levying fee or other charges for carrying out the purposes of the Act.
(f) SERI conducts inspections, inquiries, and audits of stock exchanges.
(g) Perform and exercise such power under Securities Contracts (Regulation) Act 1956, as may be delegated by the Government of India.
(ii) Development Functions
(a) Training of intermediaries of the securities market.
(b) Conducting research and publishing information useful to all market participants.
(c) Undertaking measures to develop the capital markets by adopting a flexible approach.
(iii) Protective Functions
(a) Prohibition of fraudulent and unfair trade practices.
(b) Controlling insider trading and imposing penalties for such practices.
(c) Undertaking steps for investor protection.
(d) Promotion of fair practices and code of conduct in a securities market.
The overall objective of SEBI is to protect the interests of investors, promote the development of and regulate the securities market. This may be elaborated as follows:
(i) To regulate stock exchanges and the securities industry to promote their orderly functioning.
(ii) To protect the rights and interests of investors, particularly individual investors, and to guide and educate them.
(iii) To prevent fraudulent activities and malpractices.
(iv) To regulate and develop a code of conduct for intermediaries with a view to make them competitive and professional.
Functions of SEBI
SEBI performs the following functions:
(i) Regulatory Functions
(a) Registration of brokers, sub-brokers and other players in the market.
(b) Registration of collective investment schemes and mutual funds.
(c) Regulation of stockbrokers, portfolio exchanges, underwriters, and merchant bankers and the business in stock exchanges.
(d) Regulation of takeover bids by companies.
(e) Levying fee or other charges for carrying out the purposes of the Act.
(f) SERI conducts inspections, inquiries, and audits of stock exchanges.
(g) Perform and exercise such power under Securities Contracts (Regulation) Act 1956, as may be delegated by the Government of India.
(ii) Development Functions
(a) Training of intermediaries of the securities market.
(b) Conducting research and publishing information useful to all market participants.
(c) Undertaking measures to develop the capital markets by adopting a flexible approach.
(iii) Protective Functions
(a) Prohibition of fraudulent and unfair trade practices.
(b) Controlling insider trading and imposing penalties for such practices.
(c) Undertaking steps for investor protection.
(d) Promotion of fair practices and code of conduct in a securities market.
