The Securities and Exchange Board of India (SEBI) is India’s largest regulator. SEBI is a department of the government which works to control the stock market. The Securities and Exchange Board of India (SEBI) was established on 12 April 1988 as a non-statutory regulatory body. After the establishment of SEBI, the Government of India conferred statutory powers on 30 January 1992. SEBI through SEBI Act, 1992.
SEBI has its headquarters at Bandra Kurla Complex in Mumbai and some regional offices of SEBI in New Delhi, Chennai, Kolkata and Ahmadabad. Also, there are local offices in Bangalore, Jaipur, Guwahati, Bhubaneswar, Patna, Kochi and Chandigarh.
Functions of SEBI
Protecting the interest of investors in the stock market: – Most of the investors buy and sell shares in the stock market of many companies. If something wrong happens with such individuals, then investors can file their complaints with SEBI. The first task of SEBI is to protect the interest of investors.
Capital Market Development: – Capital market is the market that provides loans to companies for the short or long-term. Companies or industrial houses can take loans through the capital market and then the primary function of SEBI is to develop such a market.
Bringing all aspects of the stock market under SEBI: – There are many parts of the stock market, such as firms, investors, corporate brokers, all of which are subject to SEBI rules as well as the main functions of SEBI. Consists of one. So that the entire stock market can follow SEBI regulations and not be fooled by any investor.
It is prohibiting unethical trading in the stock market: – Any business which is dishonest in the stock market, company that does the wrong business and prohibits unethical sale or sale of shares of any company in the market. Hence, SEBI prevents its customers from this type of illegal trade.
Stopping insider trading: -Inside trading means intimate trading, many times it happens that many companies are issuing their shares, such as company officials who are aware of that company’s secret business or, if you do something knowing the confidential information, those officers are making more profit through that stock. It is also essential to stop this insider trading
Mutual Fund Registration: – Many schemes are being launched in the country, where many people are investing money together and putting it in the stock market or stock market. The job of SEBI is also to register and take care of such funds.
Primarily we can assume that SEBI is responsible for the operation of every stock market. And that broker, do not cheat with the investor. The primary objective of SEBI is to stop all these issues. SEBI has many functions, and its primary function is to protect the interests of investors and by continuous technology to improve the stock market infrastructure.
Rights of SEBI
(i) Registration and control of the stock exchange.
(ii) Checking stock exchange accounts after a specific time.
(iii) To verify the financial accounts of the broker.
(iv) To register the company in the stock exchange market.
(v) Regulation of registration of the brokers.