SEBI - Securities and Exchange Board of India

The Securities and Exchange Board of India (SEBI) is the regulatory body for the securities market in India. It was established on April 12, 1992, as a non-statutory body through a resolution of the Government of India. Later, it was given statutory powers on January 30, 1992, through the enactment of the Securities and Exchange Board of India Act, 1992.

Non-Statutory Body:

SEBI is considered a non-statutory body because it was initially established through a resolution and not through an Act of Parliament. However, it was later granted statutory powers and functions through the SEBI Act. A non-statutory body is an organization or institution that is not established by an Act of Parliament or a state legislature.

Functions of SEBI:

1. Regulatory Role: SEBI's primary function is to regulate and supervise the securities market in India. It aims to protect the interests of investors and promote the development of the securities market.

2. Investor Protection: SEBI ensures the protection of investors' interests by regulating various participants in the market, such as stockbrokers, portfolio managers, and investment advisers. It also promotes fair practices and transparency in the securities market.

3. Registration and Regulation: SEBI registers and regulates intermediaries in the securities market, such as stock exchanges, depositories, and clearinghouses. It sets guidelines and standards for their operations and monitors their compliance.

4. Market Surveillance: SEBI conducts surveillance of the securities market to detect any market manipulation, insider trading, or fraudulent activities. It has the power to investigate and take action against such malpractices.

5. Enforcement: SEBI has the authority to enforce its regulations and take disciplinary action against market participants who violate the rules. It can impose penalties, suspend licenses, or initiate legal proceedings as necessary.

6. Promoting Market Development: SEBI plays a crucial role in promoting the development of the securities market by introducing new products, facilitating market infrastructure, and encouraging innovation and competition.

Conclusion:

SEBI, although initially established as a non-statutory body, was later given statutory powers through the SEBI Act. It performs various regulatory functions to ensure the smooth functioning of the securities market and protect the interests of investors.