Question

which problems occur in function of sebi

Answer 1

Making sure that no kind of insider trading is allowed. Now, who is an insider? Suppose someone invests or buys stocks of a particular company and is in some way associated with it- like the worker of the company, one of the Board of directors etc. These people might or might not have knowledge of the security and the future plans of the company. When one knows such important data it becomes really easy for people to invest and reap benefits from it which are strictly personal in nature. This creates an unfair and unstable situation of the investment market and hence it is SEBI’s task to ensure that no insider trading takes place.