Question

Justify the following statement.

SEBI has to perform many functions to regularise the market.

Answer 1

The various functions of SEBI are:

1. To protect the interest 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 stock brokers, sub-brokers, share transfer agents, bankers to an issue, trustees of trust deeds, registrars to an issue, merchants 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 organizations.
8. To prohibit fraudulent and unfair trade practices relating to securities markets.
9. To promote investor's education and training of intermediaries of the securities market.
10. To prohibit insider trading in securities.