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:

  1. Protecting the interests of investors in securities
  2. Promoting the development of the securities market
  3. Regulating the securities market.

Functions of SEBI

Regulatory Functions

  • 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

Developmental Functions

  • 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