What is SEBI?
SEBI stands for Securities and Exchange Board of India. It is the regulatory body for the securities and commodity market in India under the jurisdiction of the Ministry of Finance, Government of India.
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| What is SEBI? Role, Powers & Market Impact |
📌 SEBI Full Form
SEBI: Securities and Exchange Board of India
📅 When was SEBI formed?
SEBI was established on 12 April 1988 and given statutory powers on 30 January 1992 through the SEBI Act, 1992.
🔍 Why was SEBI Formed?
SEBI was formed to protect investors’ interests and promote transparency in the Indian stock market. Before SEBI, there was little regulation in place, and market scams were frequent. SEBI was created to bring law, order, and trust to the system.
💡 Functions of SEBI
- Regulate stock exchanges like NSE and BSE
- Register and regulate market intermediaries like brokers, mutual funds, portfolio managers, etc.
- Prevent fraudulent and unfair trade practices
- Promote investor education and protection
- Monitor insider trading and penalize violators
🛡️ Powers of SEBI
- Make regulations for stock market operations
- Conduct audits and inspections of companies
- Impose penalties and suspend registrations
- Approve and regulate mergers, acquisitions, and corporate restructuring in listed companies
🔗 SEBI's Role in Indian Stock Market
SEBI is often called the "watchdog of the Indian stock market". It keeps a strict eye on all activities — ensuring that companies and intermediaries follow fair practices. Its role is crucial for maintaining investor confidence and the smooth functioning of markets.
📘 Example of SEBI in Action
In past cases of insider trading, SEBI has fined companies and banned individuals from trading. It also regularly brings new rules such as T+1 settlement, stricter IPO norms, and margin regulations for better market discipline.
🏛️ SEBI Head Office
Location: Bandra-Kurla Complex, Mumbai, Maharashtra, India
📈 SEBI and Retail Investors
SEBI protects retail investors by enforcing strict guidelines for IPOs, mutual funds, and trading platforms. It also operates the SCORES platform where investors can file complaints online.
🌐 Useful Links
📊 Final Thoughts
SEBI plays an important role in protecting market integrity and ensuring investor safety. Whether you're a beginner or experienced trader, understanding SEBI helps you navigate the Indian stock market with confidence.
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