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Functions of SEBI (Securities and Exchange Board of India) - Class 12 | SP | BusinessStudies | NCERT Video Lecture

FAQs on Functions of SEBI (Securities and Exchange Board of India) - Class 12 - SP - BusinessStudies - NCERT Video Lecture

1. What is the role of SEBI in regulating the securities market in India?
Ans. SEBI, or the Securities and Exchange Board of India, is responsible for regulating the securities market in India. Its main functions include protecting the interests of investors, promoting the development of the securities market, and regulating the activities of intermediaries in the market. SEBI ensures fair practices and transparency in the market and works towards maintaining a balance between the interests of investors and issuers.
2. How does SEBI protect the interests of investors?
Ans. SEBI protects the interests of investors in multiple ways. It requires companies to disclose all material information related to their securities, ensuring transparency and preventing fraud. SEBI also regulates the functioning of intermediaries in the market, such as brokers and mutual funds, to ensure that they follow ethical practices and act in the best interests of investors. Additionally, SEBI has established a grievance redressal mechanism to address investor complaints and resolve disputes.
3. What measures has SEBI taken to promote the development of the securities market in India?
Ans. SEBI has implemented a range of measures to promote the development of the securities market in India. It has simplified the process of issuing securities, making it easier for companies to raise funds. SEBI has also introduced regulations to encourage the participation of foreign investors in the Indian market, thereby increasing liquidity and attracting more capital. Furthermore, SEBI has introduced various reforms to improve the efficiency and transparency of trading, such as the introduction of online trading platforms and dematerialization of securities.
4. How does SEBI regulate the activities of intermediaries in the securities market?
Ans. SEBI regulates the activities of intermediaries in the securities market by setting guidelines and regulations that they must adhere to. It issues licenses to intermediaries, such as brokers, merchant bankers, and mutual funds, after assessing their eligibility and compliance with the prescribed regulations. SEBI conducts regular inspections and audits of intermediaries to ensure their compliance with the regulations and takes strict actions against those found violating the rules. By regulating intermediaries, SEBI aims to protect investors and maintain the integrity of the securities market.
5. How does SEBI maintain a balance between the interests of investors and issuers?
Ans. SEBI maintains a balance between the interests of investors and issuers by implementing regulations that promote fairness and transparency in the securities market. It ensures that issuers provide all material information to investors, enabling them to make informed investment decisions. SEBI also regulates the pricing of securities to prevent issuers from exploiting investors. Additionally, SEBI takes measures to protect minority shareholders and prevent insider trading, thereby safeguarding the interests of investors. At the same time, SEBI also works towards creating a conducive environment for issuers to raise funds and grow their businesses.
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