SEBI: Objectives and Functions

SEBI or Securities and Exchange Board of India was established on April 12, 1988, as an independent regulator for the securities market in India. Its objective is to protect the interests of investors in securities and promote the development of and regulate the securities market.

Objectives of SEBI

1. To protect investor interests
SEBI's primary objective is to protect the interests of investors in securities, ensuring that they are not deceived or exploited by issuers and other intermediaries in the securities market.

2. To regulate the securities market
SEBI's main objective is to regulate the securities market to ensure its fair and transparent functioning. SEBI ensures that the securities market operates in a way that facilitates capital formation and protects the interests of investors.

3. To develop the securities market
SEBI's objective is to work towards the development of the securities market by introducing new financial instruments, encouraging market participants, and improving market infrastructure.

Functions of SEBI

1. Registration of intermediaries
SEBI registers and regulates intermediaries such as brokers, merchant bankers, and portfolio managers.

2. Regulating stock exchanges
SEBI regulates stock exchanges in India by ensuring that they follow the rules and regulations laid down by SEBI.

3. Protecting the interests of investors
SEBI protects the interests of investors by ensuring that issuers of securities provide adequate information to the investors, and by taking action against fraudulent practices.

4. Promoting transparency in the securities market
SEBI ensures that there is transparency in the securities market by requiring issuers to disclose all relevant information to investors, and by requiring market participants to make timely disclosures of their transactions.

5. Regulating insider trading
SEBI regulates insider trading in the securities market by imposing penalties on those who engage in insider trading and by monitoring trading patterns to detect insider trading.

In conclusion, SEBI plays a crucial role in regulating the securities market in India by ensuring that it operates fairly and transparently. Its objective is to protect the interests of investors and promote the development of the securities market. Its functions include regulating intermediaries, protecting the interests of investors, promoting transparency in the securities market, and regulating insider trading.

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