![]() ![]() If people lose confidence in the market, the number of participants will decrease. The stock market is one of the most important indicators of a country’s economic health. It also provides investors with education and information about the stock market through the funds available at IEPF. ![]() SEBI promotes fair trade and limits unfair practices. Development functions: SEBI’s list of development tasks also includes the training of intermediaries. SEBI regulates not only the intermediaries but also the credit rating agencies.ģ. SEBI has the right to levy tax on capital market participants. It acts as a data repository for brokers, sub-brokers, investment bankers, and many others. ![]() The SEBI also conducts investigations and audits of stock exchanges. It develops guidelines and a code of conduct for financial intermediaries and regulates mergers and acquisitions. Regulatory functions: As a regulator, the SEBI oversees the operation of financial market intermediaries. Protective functions include monitoring price formation, preventing insider trading, promoting fair practices, educating investors, and prohibiting misleading and unfair trading practices.Ģ. Protection functions: SEBI performs these functions to protect the interests of investors and financial institutions. The SEBI performs the following three main functions to fulfill its mission.ġ. The SEBI oversees the activities of stock exchange intermediaries such as brokers and sub-brokers. They act as intermediaries in the securities market and ensure the smooth and safe functioning of stock exchange transactions. The SEBI should ensure that investors do not fall prey to stock market manipulation or fraud. Financial markets only work because there are traders. – Participants in the capital market, i.e. SEBI ensures that IPOs and FPO issues can take place in a transparent and robust manner. These are publicly traded companies that finance themselves by issuing shares. SEBI has to deal with the three major players in the financial market to achieve its objectives. The key role of SEBI in the Indian financial market Moreover, as mentioned earlier, one of the main reasons for setting up the SEBI was to prevent unfair practices in the Indian capital market. It aims to protect the interests of investors and traders in the Indian securities market by ensuring a healthy environment in the securities market and by promoting and regulating the securities market. The SEBI is responsible for ensuring the smooth functioning of the securities market in India. The other five members of the Governing Board shall be appointed by the Union Government. Of the eight members of the panel, two are appointed by the Union Finance Ministry and one by the RBI. The honorary president is appointed by the central government. SEBI consists of a president and other board members. He was appointed as a member of the Supervisory Board on 1 January 2017 and took office with effect from 1 January 2017. Ajay Tyagi is the current chairman of SEBI. SEBI guidelines apply to all such awards. India currently has 17 stock exchanges, including the NSE and the BSE. You can also find local SEBI offices in Jaipur, Guwahati, Bangalore, Patna, Bhubaneswar, Chandigarh, and Kochi. SEBI has its head office in Mumbai and regional offices in Delhi, Chennai, Kolkata, and Ahmedabad. It can also handle the registration of stockbrokers.This may discourage companies from signing up.The SEBI has been granted the right to audit the books and records of financial intermediaries.It may also require regular reports on these exchanges. It can audit the books of recognized stock exchanges in the country.The SEBI has been given the power to regulate and approve the rules and regulations of the stock exchanges.By virtue of its legal status, the SEBI may carry out the following activities. Nevertheless, in 1992 it was given legal status and became an autonomous body that controlled the country’s entire stock market. Initially, the SEBI acted as a watchdog and did not have the power to monitor and regulate the affairs of the Indian financial market. ![]()
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