Question

Explain the powers of SEBI.

Answer 1

The various powers of a SEBI are explained below:

1. Powers Relating to Stock Exchanges and Intermediaries: SEBI has wide powers to get the information from the stock exchange and intermediaries regarding their business transactions for inspection.
2. Power to Impose Monetary Penalties: SEBI has the power to impose monetary penalties on capital market intermediaries for violations.
3. Power to Initiate Actions in Functions Assigned
4. Power to Regulate Insider Trading: SEBI has the power to regulate insider trading or can regulate the functions of merchant bankers.
5. Powers Under Securities Contracts Act: For the regulation of the stock exchange, the Ministry of Finance issued a notification, for delegating several of its powers under the securities contract Act.