Securities And Exchange Board Of India (Sebi)

Securities and Exchange Board of India (SEBI)

The Securities and Exchange Board of India (SEBI) is a statutory body established in 1956 under the Indian Securities and Exchange Board Act, 1956. It is the primary regulatory body in India responsible for regulating the securities market and protecting investors’ interests.

Key Functions of SEBI:

• Regulation of Issuers: Regulates the issuance and listing of securities, including approving initial public offerings (IPOs) and regulating ongoing compliance.
• Protection of Investors: Protects investors from fraud, manipulation, and other malpractices.
• Regulation of Market Participants: Regulates brokers, sub-brokers, custodians, and other intermediaries.
• Promotion of Market Efficiency: Promotes transparency, fairness, and efficiency in the securities market.
• Development of the Securities Market: Develops and implements policies to foster growth and development of the securities market.

Major Activities of SEBI:

• Corporate Regulation: Regulates companies, including their financial reporting, governance, and disclosure requirements.
• Securities Market Regulation: Regulates the trading of securities in the stock market, including setting trading rules and margins.
• Investor Protection: Takes measures to prevent fraud and other misconduct, such as regulating margin calls and providing investor education.
• Market Infrastructure Development: Develops infrastructure for the securities market, such as settlement systems and data repositories.

Major Initiatives:

• Listing Regulations: Implemented new listing regulations for various categories of companies.
• Cybersecurity Framework: Launched a cybersecurity framework to protect the securities market from cyber threats.
• Financial Technology (FinTech) Regulation: Regulates the growing FinTech sector and its impact on the securities market.
• Retail Investor Protection: Implemented measures to protect retail investors, such as regulating online trading platforms.

SEBI is a vital regulator in the Indian securities market, ensuring its integrity, transparency, and fairness.