Question

What is meant by SEBI? Briefly explain its objectives.

Answer 1

The Securities and Exchange Board of India was established as an interim administrative body on 12 April 1988 by the Government of India.Its main objective was to promote orderly and healthy growth of securities and to provide protection to the investors.

Objectives of SEBI:

Following are the main objectives of SEBI:

1. Protection:guide, educate, and to protect the rights and interests of the investors.

2. Competitive and Professional:

To make the intermediaries like merchant bankers, brokers etc. competitive and professional by regulating their activities and developing a code of conduct.

3. Prevention of Malpractices:To prevent trading malpractices.

4. Balancing:

To establish a balance between statutory regulation and self regulation by the securities industry.

5. Orderly Functioning:

To promote orderly functioning of stock exchange and securities industry by regulating them.