What is the reason behind establishment of SEBI?
Answers
Q:-What is the reason behind establishment of SEBI?
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ESTABLISHMENT OF SEBI
With the growth in the dealings of stock markets ,lots of malpractices also started in stock markets such as price rigging , unofficial premium on new issue, violation of rules and regulations of stock exchange and listing requirements.Due to these malpractices the customers started losing confidence and faith in stock exchange so government of India decided to setup an agency or regulatory body which is known as SEBI.
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Answer:
Explanation:
The regulations of the stock exchange and capital market.
Prohibition of fraudulent and unfair trade.
Improving education and training of intermediaries of the securities market.
Promoting investors and registering intermediaries.
Regulating substantial acquisition of shares and takeovers of companies