SEBI Full Form, Role & Objectives

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SEBI Full Form, Role & Objectives

SEBI full form is Securities and Exchange Board of India. It is the regulator of the securities market in India. It monitors the stock exchanges, brokers, listed companies, and other market participants to ensure transparency and fairness. 

What is the Full Form of SEBI?

SEBI stands for Securities and Exchange Board of India. It was established in 1988 but back then it was a non-statutory body. However, it gained statutory powers through the SEBI Act, 1992, which came into effect on January 30, 1992. 

The primary role of SEBI is to protect the interests of stock market investors, enforce trading norms and promote transparency to make sure the stock market runs with accountability and integrity.

Key Objectives of SEBI

The mission and key objectives of SEBI are as follows:

• Investor protection is arguably one of the key reasons SEBI was established. The Board offers guidance and ensures that investments are made securely to ultimately safeguard the interests of participants in the financial markets.

• SEBI works to prevent fraudulent activities and malpractices related to trading and the regulation of stock exchange operations.

• For underwriters, brokers, listed companies, and other market participants, SEBI lays down a code of conduct. This helps promote ethical behavior and accountability across the finance market.

• It also maintains a careful balance between statutory regulation and self-regulation. This allows the market to function efficiently without becoming overly restrictive.

• Moreover, SEBI ensures that investors have easy access to accurate and timely information about companies and their securities. This enables them to make well-informed investment decisions.

Roles and Responsibilities of SEBI

The Securities and Exchange Board of India (SEBI) has the following roles and responsibilities:

• One of SEBI’s major roles is to protect the interests of investors, as well as other key participants in the financial market, such as brokers, underwriters, and portfolio managers.

• It prohibits insider trading. Basically, insider trading means an act of buying/selling securities by the insiders of a company. This includes the directors, promoters and employees. SEBI has forbidden the companies to purchase their own shares from the secondary market to prevent such kind of trading.

• Price rigging means manipulating stock prices, either by pushing them up or dragging them down in ways that aren’t natural. This can end up hurting investors with unexpected losses. SEBI keeps a close eye to stop this kind of unfair practice.

• SEBI is all about making sure trading is fair and honest. It also works to stop any shady stuff going on in the market. 

• On top of that, SEBI helps investors learn the ropes by running both online and offline sessions that talk about how the market works and how to handle money wisely.

• As a regulator, SEBI sets the rules for financial middlemen and companies so that everything runs smoothly in the market.

• It forms guidelines and code of conduct that the corporates and financial intermediaries are bound to follow.

• It regulates the process of taking over a company.

• SEBI conducts inquiries and audits of stock exchanges.

• It regulates how the stock brokers and merchant brokers work.

• It trains intermediaries who are a part of the security market.

• By the help of registered stock brokers, it has introduced trading through electronic means or through the internet.

• For companies looking to raise money, SEBI offers a platform where they can do just that. 

• It also makes sure investors get the right information, updated regularly, so they can make smart decisions. 

• For the intermediaries, SEBI helps create a competitive market by putting the right infrastructure in place.

Organization Structure of SEBI

SEBI consists of nine members in total. The following members make up the Board:

• A Chairman appointed by the Central Government of India

• One member nominated by the Reserve Bank of India (RBI)

• Two members representing the Ministry of Finance

• Five members appointed by the Central Government of India

Conclusion

The Securities and Exchange Board of India (SEBI) is the regulator of the financial market. Because of this Board, the interests of investors and other financial intermediaries are protected. In total, there are 9 members who are a part of SEBI. All of them work together to ensure prevalence of fair practices, maintain transparency, and regulate the securities market efficiently.

If you want to get a SEBI license, you can connect with Registrationwala for assistance. 

Frequently Asked Questions (FAQs)

Q1. What is the full form of SEBI?

A. SEBI full form is Securities and Exchange Board of India.

Q2. What is the goal of SEBI?

A. The goal of SEBI is to safeguard the interests of investors in the securities market.

Q3. How many members are there in SEBI?

A. SEBI consists of 9 members: Chairman, one RBI-nominated member, two members who represent the Finance Ministry, and five central government-appointed members.

Q4. When was SEBI established?

A. SEBI was established on April 12, 1988. It got statutory powers on January 30, 1992, under the SEBI Act 1992.

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