Sebi need & importance
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What is the need and importance of the SEBI?
Securities and Exchange Board of India (SEBI), is a statutory regulatory body established by an Act of Parliament, to protect the interests of investors in securities, to promote the development of and to regulate the securities market.
The need and importance of SEBI lie in its Roles and Functions. So, I’ll Discuss the Roles and Functions of SEBI.
It is the duty of the Board to protect the interests of investors in securities and to promote the development of and to regulate the securities market, by such measures as it thinks fit.
Regulating the business in stock exchanges and any other securities markets.
Registering and regulating the working of stock brokers, sub-brokers, share transfer agents, bankers to an issue, trustees of trust deeds, registrars to an issue, merchant bankers, underwriters, portfolio managers, investment advisers and such other intermediaries who may be associated with securities markets in any manner.
Registering and regulating the working of venture capital funds and collective investment schemes, including mutual funds.
Promoting and regulating self-regulatory organizations.
Prohibiting fraudulent and unfair trade practices relating to securities markets.
Promoting investors’ education and training of intermediaries of securities markets.
Prohibiting insider trading in securities.
Regulating substantial acquisition of shares and takeover of companies.
Calling for information from, undertaking inspection, conducting inquiries and audits of the stock exchanges, mutual funds, other persons associated with the securities market, intermediaries and self-regulatory organizations in the securities market.
Performing such functions and exercising such powers under the provisions of the Securities Contracts (Regulation) Act, 1956, as may be delegated to it by the Central Government.
Levying fees or other charges for carrying out the purposes of this section.
Conducting research for the above purposes.
Performing such other functions as may be prescribed.
Without prejudice to the provisions, the Board may, by an order, for reasons to be recorded in writing, in the interests of investors or securities market, take any of the following measures, either pending investigation or inquiry or on completion of such investigation or inquiry, namely:—
Suspend the trading of any security in a recognized stock exchange.
Restrain persons from accessing the securities market and prohibit any person associated with the securities market to buy, sell or deal in securities.
Suspend any office-bearer of any stock exchange or self-regulatory organization from holding such position;
Impound and retain the proceeds or securities in respect of any transaction which is under investigation.
Direct any intermediary or any person associated with the securities market in any manner not to dispose of or alienate an asset forming part of any transaction which is under investigation.
Securities and Exchange Board of India (SEBI), is a statutory regulatory body established by an Act of Parliament, to protect the interests of investors in securities, to promote the development of and to regulate the securities market.
The need and importance of SEBI lie in its Roles and Functions. So, I’ll Discuss the Roles and Functions of SEBI.
It is the duty of the Board to protect the interests of investors in securities and to promote the development of and to regulate the securities market, by such measures as it thinks fit.
Regulating the business in stock exchanges and any other securities markets.
Registering and regulating the working of stock brokers, sub-brokers, share transfer agents, bankers to an issue, trustees of trust deeds, registrars to an issue, merchant bankers, underwriters, portfolio managers, investment advisers and such other intermediaries who may be associated with securities markets in any manner.
Registering and regulating the working of venture capital funds and collective investment schemes, including mutual funds.
Promoting and regulating self-regulatory organizations.
Prohibiting fraudulent and unfair trade practices relating to securities markets.
Promoting investors’ education and training of intermediaries of securities markets.
Prohibiting insider trading in securities.
Regulating substantial acquisition of shares and takeover of companies.
Calling for information from, undertaking inspection, conducting inquiries and audits of the stock exchanges, mutual funds, other persons associated with the securities market, intermediaries and self-regulatory organizations in the securities market.
Performing such functions and exercising such powers under the provisions of the Securities Contracts (Regulation) Act, 1956, as may be delegated to it by the Central Government.
Levying fees or other charges for carrying out the purposes of this section.
Conducting research for the above purposes.
Performing such other functions as may be prescribed.
Without prejudice to the provisions, the Board may, by an order, for reasons to be recorded in writing, in the interests of investors or securities market, take any of the following measures, either pending investigation or inquiry or on completion of such investigation or inquiry, namely:—
Suspend the trading of any security in a recognized stock exchange.
Restrain persons from accessing the securities market and prohibit any person associated with the securities market to buy, sell or deal in securities.
Suspend any office-bearer of any stock exchange or self-regulatory organization from holding such position;
Impound and retain the proceeds or securities in respect of any transaction which is under investigation.
Direct any intermediary or any person associated with the securities market in any manner not to dispose of or alienate an asset forming part of any transaction which is under investigation.
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