PowerPoint Presentation

See the source image. Professional Training. A picture containing airplane, plane Description automatically generated.

What is SEBI. The Securities and Exchange Board of India (SEBI) was officially appointed as the authority for regulating the financial markets in India on 12th April 1988. It was initially established as a non-statutory body, i.e. it had no control over anything but later in 1992, it was declared an autonomous body with statutory powers. SEBI plays an important role in regulating the securities market of India.

Why SEBI Formed. Capital markets began to gain popularity among Indians from the end of the 1970s and during the 1980s..

Due to these malpractices, people started losing confidence in the stock market. The government felt a sudden need to set up an authority to regulate the working and reduce these malpractices. As a result, the Government came up with the establishment of SEBI.

Role of SEBI. SEBI's function The major objective of SEBI, which serves as a watchdog for all capital market participants, is to create an environment for those who are interested in the financial markets that supports the successful and efficient operation of the securities market. In order for this to occur, it makes sure that the needs of the three primary actors in the financial market issuers of securities, investors, and financial institutions satisfied..

Issue Securities. These corporate organisations raise money from a variety of sources on the market. SEBI makes sure kids have a safe and open atmosphere that meets their needs. Investor The markets are kept active by investors. To regain the trust of the general public who invest their hard-earned money in the markets, SEBI is in charge of maintaining an atmosphere free from fraud..

O POWERS OF SEBI 9 Quasi- Judicial Power to give judgements on unethical & fraudulent activities. Quasi- Executive Power to implement regulations & take legal action against violators. Quasi- Legislative Framing the rules & regulations to protect the interest of investors.

Functions of SEBI. Functions of SEBI SEBI primarily has three functions Protective Function 2. Regulatory Function 3. Development Function.

Protective Functions. As the name suggests, these functions are performed by SEBI to protect the interest of investors and other financial participants. Checking price rigging Prevent insider trading Promote fair practices Create awareness among investors Prohibit fraudulent and unfair trade practices.

Regulatory Functions. These functions are basically performed to keep a check on the functioning of the business in the financial markets : Designing guidelines and code of conduct for the proper functioning of financial intermediaries and corporate. Regulation of takeover of companies Conducting inquiries and audit of exchanges Registration of brokers, sub-brokers, merchant bankers etc Levying of fees Performing and exercising powers Register and regulate credit rating agency.

Development Functions. SEBI performs certain development functions also that include but they are not limited to : Imparting training to intermediaries Promotion of fair trading and reduction of malpractices Carry out research work Encouraging self-regulating organizations Buy-sell mutual funds directly from AMC through a broker.

Objectives of SEBI. SEBI has following objectives Protection to the investors The primary objective of SEBI is to protect the interest of people in the stock market and provide a healthy environment for them. 2. Prevention of malpractices This was the reason why SEBI was formed. Among the main objectives, preventing malpractices is one of them..

Objectives of SEBI. 3. Fair and proper functioning SEBI is responsible for the orderly functioning of the capital markets and keeps a close check over the activities of the financial intermediaries such as brokers, sub-brokers, etc..

K. N. A. H. T. Y. O. U.