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Objectives of sebi?
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Objectives of sebi?
Objectives of SEBI
SEBI, which stands for Securities and Exchange Board of India, is a regulatory body established in 1988 to protect the interests of investors in India. The primary objectives of SEBI are as follows:
- Protecting the interests of investors: SEBI aims to safeguard the interests of investors by ensuring that securities markets operate in a fair and transparent manner. It regulates stockbrokers, sub-brokers, and other intermediaries to ensure that they adhere to the rules and regulations set by the board.
- Promoting the development of the securities market: SEBI aims to promote the development of the securities market by introducing new policies and regulations. It ensures that securities markets are efficient and transparent, and encourages the participation of more investors in the market.
- Regulating the securities market: SEBI regulates the securities market by ensuring that every participant in the market follows the rules and regulations set by the board. It takes action against entities that violate the regulations and imposes penalties on them.
- Developing a code of conduct for intermediaries: SEBI has developed a code of conduct for intermediaries to ensure that they follow ethical and professional standards. The code of conduct helps in creating a level playing field for all intermediaries and promotes healthy competition in the market.
- Promoting investor education and awareness: SEBI aims to promote investor education and awareness by conducting workshops, seminars, and other educational programs. It also publishes informative materials on its website to help investors make informed investment decisions.
- Preventing fraudulent and unfair trade practices: SEBI takes strict action against fraudulent and unfair trade practices in the securities market. It has the power to investigate and penalize entities that engage in such practices.
In conclusion, SEBI plays a crucial role in regulating the securities market in India. Its primary objectives include protecting investors' interests, promoting the development of the securities market, regulating the securities market, developing a code of conduct for intermediaries, promoting investor education and awareness, and preventing fraudulent and unfair trade practices. By achieving these objectives, SEBI aims to create a transparent and fair securities market that benefits all investors.
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Objectives of sebi?
The main objectives of SEBI are:
(1) Regulation of Stock Exchanges:
The first objective of SEBI is to regulate stock exchanges so that efficient services may be provided to all the parties operating there.
(2) Protection to the Investors:
The capital market is meaningless in the absence of the investors. Therefore, it is important to protect the interests of the investors.
The protection of the interests of the investors means protecting them from the wrong information given by the companies in their prospectus, reducing the risk of delivery and payment, etc. Hence, the foremost objective of the SEBI is to provide security to the investors.
(3) Checking the Insider Trading:
Insider trading means the buying and selling of securities by those people’s directors Promoters, etc. who have some secret information about the company and who wish to take advantage of this secret information.
This hurts the interests of the general investors. It was very essential to check this tendency. Many steps have been taken to check inside trading through the medium of the SEBI.
(4) Control over Brokers:It is important to keep an eye on the activities of the brokers and other middlemen in order to control the capital market. To have a control over them, it was necessary to establish the SEBI.
(1) Regulation of Stock Exchanges:
The first objective of SEBI is to regulate stock exchanges so that efficient services may be provided to all the parties operating there.
(2) Protection to the Investors:
The capital market is meaningless in the absence of the investors. Therefore, it is important to protect the interests of the investors.
The protection of the interests of the investors means protecting them from the wrong information given by the companies in their prospectus, reducing the risk of delivery and payment, etc. Hence, the foremost objective of the SEBI is to provide security to the investors.
(3) Checking the Insider Trading:
Insider trading means the buying and selling of securities by those people’s directors Promoters, etc. who have some secret information about the company and who wish to take advantage of this secret information.
This hurts the interests of the general investors. It was very essential to check this tendency. Many steps have been taken to check inside trading through the medium of the SEBI.
(4) Control over Brokers:It is important to keep an eye on the activities of the brokers and other middlemen in order to control the capital market. To have a control over them, it was necessary to establish the SEBI.
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Objectives of sebi? for B Com 2025 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Objectives of sebi? covers all topics & solutions for B Com 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Objectives of sebi?.
Objectives of sebi? for B Com 2025 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Objectives of sebi? covers all topics & solutions for B Com 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Objectives of sebi?.
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