Securities and Exchange Board of India (SEBI)

SEBI stands for Securities and Exchange Board of India.

The Securities and Exchange Board of India (SEBI) is India’s primary securities market regulator. The Securities and Exchange Commission (SEC) in the United States is SEBI’s counterpart. “To protect the interests of investors in securities, to encourage the growth of, and to regulate the securities market, and for matters associated with or incidental thereto,” the organization’s declared goal is.

TAKEAWAYS IMPORTANT.

  • The Securities and Exchange Board of India (SEBI) is India’s top securities regulator, similar to the Securities and Exchange Commission in the United States.
  • SEBI has broad regulatory, investigation, and enforcement capabilities, as well as the capacity to penalise violators.
  • Some criticise SEBI for allegedly lacking transparency and direct public accountability for an entity with such vast powers.

The SEBI was established.

  1. The Securities and Exchange Board of India was founded in its current form in April 1992, after the nation’s parliament passed the Securities and Exchange Board of India Act.
  2. It replaced the Capital Issues (Control) Act of 1947, which regulated the securities markets just months before India gained independence from the British.
  3. The SEBI headquarters are at Mumbai’s Bandra-Kurla Complex, in the business sector. There are additional regional offices in New Delhi, Kolkata, Chennai, and Ahmedabad, as well as more than a dozen local offices in Bangalore, Jaipur, Guwahati, Patna, Kochi, and Chandigarh.

The SEBI Charter.

SEBI is meant to be accountable for three key groupings, according to its charter:

  • The issuers of securities
  • Investors
  • Market intermediaries

In its regulatory function, the body creates regulations and statutes; in its judicial capacity, it issues judgements and orders; and in its enforcement capacity, it conducts investigations and imposes penalties.

SEBI is governed by a board of directors that includes a chair elected by parliament, two officials from the Ministry of Finance, one member from the Reserve Bank of India, and five other members elected by parliament.

SEBI has been chastised.

SEBI, according to critics, lacks transparency and is immune to direct public oversight. The Securities Appellate Tribunal, which is made up of three judges, and the Supreme Court of India are the sole checks on its power. SEBI has been chastised by both bodies on times.

Nonetheless, SEBI has been forceful in levying penalties and enacting tough reforms at times. In 2009, in response to the global financial crisis, it established the Financial Stability Board, giving it a larger mission than its predecessor to support financial stability. 

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