SEBI, expanded as Securities and Exchange Board of India is the regulatory authority of the securities and exchange market in India, which was formed on 12 April 1992 under Section 3 of the SEBI Act, 1992.
Powers of SEBI
The SEBI Act, 1992 provides SEBI with statutory powers for:
- Protecting the interests of investors in securities
- Promoting the development of the securities market
- Regulating the securities market.
Functions of SEBI
- Registration of brokers and sub-brokers and other players in the market
- Registration of collective investments schemes and Mutual Funds
- Regulation of stock exchanges and other self-regulatory organisations (SRO) merchant banks etc
- Prohibition of all fraudulent and unfair trade practices
- Controlling Insider Trading and take over bids and imposing penalties for such practices
- Investor education
- Training of intermediaries
- Promotion of fair practices and Code of conduct for all SROs
- Conducting Research and Publishing information useful to all market participants