SEBI, or the Securities and Exchange Board of India, is the regulator of the securities market in India. Established in 1988, SEBI’s primary role is to protect the interests of investors and to promote the development of the securities market in India.
SEBI’s responsibilities include regulating the issuance and trading of securities, ensuring the fairness and transparency of securities transactions, and enforcing compliance with securities laws and regulations. It also has the power to take disciplinary action against market participants who violate securities laws and regulations.
One of SEBI’s key functions is to monitor and regulate the behavior of market intermediaries, such as stock brokers, merchant bankers, and portfolio managers. SEBI sets guidelines for these intermediaries and ensures that they operate in a fair and transparent manner.
SEBI also plays an important role in promoting investor education and financial literacy. It provides guidelines for mutual funds and other investment products, ensuring that investors are provided with clear and accurate information about the products they are investing in.
In addition, SEBI plays a crucial role in ensuring the integrity and stability of the Indian stock market. It takes steps to prevent insider trading and market manipulation, and has the power to impose penalties on those who engage in such activities.