Explain the role of SEBI in monitoring the stock exchanges.
Answers
Role of SEBI in monitoring the stock exchange:
The full form of SEBI is Securities And Exchange Board Of India. From the full form we can understand that SEBI monitors all the activities of the stock exchange in India. As we are dealing with money in stock market there are various chances of people to scam etc and this has also happened the money lost in these kinds of scam is not a small amount it is a very big amount so it is very essential for monitoring the activities of the stock exchange SEBI sees that none of the brokers are doing any fraud or scam.
Different Powers Of SEBI:
- It has the power to give penalties for the people who break the stock laws. It can also suspend the registration of that company for a short period.
- It has the power to examine and see how the brokers are functioning.
Some Recent Scams That Happened In The Stock Market:
- Harshad Mehta Scam
- Ketan Parekh Scam
You can study about the scam in detail online. These kind of scams make it necessary for a body to monitor the activities of the stock market and this is the very reason why there is SEBI .