Question

State the functions of SEBI.

Describe the functions of SEBI.

Answer 1

SEBI was set up with the objective of promoting the securities market, protecting the interest of the investors in the securities market, and regulating the securities market. SEBI issues rules and regulations to be followed by the issuers of securities, the market intermediaries, and the investors. It is a regulator of all the Stock exchanges in India.

The various functions of SEBI are:

1. To protect the interests of investors in the securities market.
2. To promote the development of securities markets.
3. To regulate the business in stock exchanges and any other securities market.
4. To register and regulate the working of stockbrokers, sub-brokers, share transfer agents, bankers to an issue, trustees of trust deeds, registrars to an issue, merchant bankers, underwriters, and such other intermediaries who may be associated with the securities market.
5. To register and regulate the working of the Depositories, Depository Participants, Custodians of securities, foreign institutional investors, and credit rating agencies.
6. To register and regulate the working of venture capital funds and collective investment schemes, including mutual funds.
7. To promote and regulate self-regulatory organisations.
8. To prohibit fraudulent and unfair trade practices relating to securities markets.
9. To promote investors’ education and training of intermediaries of the securities market.
10. To prohibit insider trading in securities.