What is SEBI (Securities and Exchange Board of India) and what is its function

What is SEBI (Securities and Exchange Board of India) and what is its function


Friends, SEBI (SEBI-Securities and Exchange Board of India) ie Securities and Regulation Board of India was established on 12 April 1988 as a non-constitutional body. After the establishment of SEBI, on 30 January 1992, the Government of India gave SEBI a constitutional status through an ordinance in Parliament.

SEBI headquarter is located in Mumbai. And SEBI also has some regional offices which are located in Delhi, Chennai, Kolkata and Ahmedabad respectively. So Sebi has its headquarters located in four metropolitan cities besides Mumbai. Friends, now we will talk about what is the constitutional structure of SEBI and what are its members?

The entire management of SEBI consists of 6 members. Of this, one member is the chairman, and the other five members are of different function. As we said that SEBI consists of 6 members, so now we explain in detail who are the 6 members, and where do they come from?

As you may have known, SEBI has a Chairman who is nominated by the Government of India. Their tenure is for 3 years or till the age of 65, whichever is earlier.

Friends, the Government of India also sends the remaining four members. Of these, 2 members are knowledge of the Ministry of Finance and 2 are knowledge of law. The remaining 1 members are from the RBI (RBI), they are selected from among the RBI officials.

When SEBI was established in 1988, the initial capital of SEBI was 7.5 crores, meaning SEBI was established for 7.5 crores. And this was the capital given by the three major companies. At that time, IDBI ICICI and IRCI had given an amount of Rs 7.5 crore to SEBI to start.

Now we know that what this SEBI is, ie the Securities and Exchange of India and the Board, what task or goal was set at the time of its establishment, or what was the purpose of setting up a Savi?

Objective of setting up SEBI: –
Protecting the interests of investors in the stock market:
Friends, many investors buy and sell shares of many companies in the stock market, if something goes wrong with such people, investors can file a complaint with SEBI. Sebi’s first task is to protect the interests of investors.

Developing Capital Markets:
Now you must be thinking what is capital market? So capital market is that which provides loans to companies for a short time or longer. If companies or industrial houses are able to take loans through the capital market, then developing such market is also a major task of SEBI.

Bringing all parts of the stock market under SEBI framework:
There are many parts of the stock market. Such as companies, investors, brokers, brokers, investors of companies, bringing all of these under SEBI or (subject to SEBI regulations) is also one of the major functions of SEVI. So that the entire stock market is complete, it can follow the rules made by SEBI and no investor should be cheated.

Prohibiting unethical trading in the stock market:
SEBI’s actions prohibiting any trading in the stock market, unethical, and prohibiting the purchase or sale of shares of any company in the stock market in an unethical manner Is out of

Ban insider trading:
Now you might be wondering what is insider trading? So friends insider trading means intimate trading, it sometimes happens that there are many companies which are issuing their shares, in such a way, which are the officers of the companies who know about the secret business of that company. Or if some secret information is known, then those officers earn more profit through that share. Stopping the activities of such people or companies is also a major function of SEBI.

Registering other collective gems including mutual funds:
A lot of schemes are launched in the country, in which money is taken from a lot of people simultaneously and put in the stock market. Registering and taking care of such funds is also the duty of SEBI.

Primarily, we can say that SEBI takes care of every activity in the stock market. And this broker, do not cheat the investor, it is SEBI’s main objective and task to stop all these things.

So friends, this post of ours is SEBI, and what is its work, how did you feel, please tell us through your comment.

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