What Is SEBI And Its Role In Capital

1. What Is SEBI And Its Role In Capital Market SEBI acts as a guardian for the the investors and protect them from the unfair practices. SEBI full form is Securities and Exchange Board of India and its main function is to regulate and monitors the functions and working of the stock market so that it can protect the investors. . SEBI Establishment - Its was established as a statutory body in 1992 because in 1980 there were tremendous amount of growth in the capital market which was the result of increased participation of the public. And due to this sudden increase there were alot of malpractices happened and to overcome these unfair practices and illegal things, SEBI came in power to regulate the market and since then it became the gurardian of the investors . At the Bandra-Kurla Complex in Mumbai, SEBI has its headquarters. More than a dozen local offices are also located in cities such as Bangalore, Jaipur, Guwahati, Patna, Kochi, and Chandigarh, as well as regional offices in New Delhi, Kolkata, Chennai, and Ahmedabad.

2. Functions and Responsibilities According to the Preamble of the Securities and Exchange Board of India, the Board has the following basic functions to protect the interests of investors in securities and to promote the development and regulation of the securities market as well as for matters related to or incidental to the securities market. Three groups comprise the market, and SEBI must respond to their needs : • issuers of securities • investors • market intermediaries SEBI combines three powers into one body: quasi-legislative, quasi-judicial, and quasi-executive. In its legislative role, it drafts regulations, in its executive role it conducts investigations and enforcement actions, and in its judicial role it passes rulings and orders. Despite its power, it has an appeals process to ensure accountability. A Securities Appellate Tribunal is currently headed by Justice TarunAgarwala, former Chief Justice of the Meghalaya High Court.  A second appeal lies directly with the Supreme Court. Streamlining disclosure requirements to international standards has been a priority for SEBI.

3. Role Of SEBI This regulatory authority acts as a watchdog for all the capital market participants and its main purpose is to provide such an environment for financial market enthusiasts that facilitates the efficient and smooth working of the securities market. SEBI also plays an important role in the economy.The SEBI's primary purpose is to monitor and improve the Indian capital market. In order to achieve this goal, the SEBI looks after the needs of three main financial participants: 1). Securities issuers: SEBI ensures that IPO and FPO issuances are conducted fairly and without fraudulent representations in any company listed on a stock exchange. 2). Protect Investors' Interests: SEBI is responsible for protecting investor interests and preventing unfair trade practices. Protecting the interests of traders and investors is important for the survival of the market because they are important part of the market.Whether you are doing Positional Trade, BTST, STBT or investment , SEBI will protect you from any unfair practices. SEBI performs these functions to protect the interests of investors and other financial participants. It includes- • Detecting price rigging • Keep insiders out of the market • Fair practices should be promoted • Make investors aware of the issue • Trade practices that are fraudulent and unfair should be prohibited 3). Intermediaries: SEBI supervises the activities of financial intermediaries such as NBFCs, lenders, brokers, sub-brokers, etc. They ensure smooth and secure transactions on the stock market. Additionally, SEBI oversees and manages the complaint division of the recognized stock exchanges, dealing with investor grievances, investor education, and policy related to commodity derivatives.

4. Objectives And Structure Of SEBI • These are some of the objectives of the SEBI: 1). SEBI was established to protect the interests of investors by providing guidance and ensuring the safety of investments. 2). Keeping the stock exchange activities under control and preventing fraudulent practices and malpractices 3). The development of a code of conduct for financial intermediaries, such as underwriters and brokers. 4). Maintaining  a balance between statutory regulations and self regulation. • Structure Of SEBI - In SEBI, there are about 20 departments, each managed by a department head. Some of these departments include corporation finance, economic and policy analysis, debt and hybrid securities, enforcement, human resources, investment management, commodity derivatives market regulation, and legal affairs.  The SEBI board consists of nine members - • The Central Government of India appoints the chairman of the board • There is one member of the Board appointed by the Central Bank, namely the RBI • Two members of the Board hail from the Union Ministry of Finance • There are five members of the Board who are elected by the Central Government of India

5. Current Board Members • Note - If you want to learn about all the concepts of share market from a beginning level then a , • Stock Market Basic Course can help you to gather the knowledge and can help you to kickstart your investment journey.It is especially designed course for beginners where you can learn stock market basics which will help you to kickstart your journey of investing in the stock market.