Wednesday 9 May 2012

Functions of SEBI


Securities and Exchange Board of India (SEBI) is a regulatory authority in India established under Section 3 of SEBI Act, 1992. SEBI Act, 1992 provides for establishment of Securities and Exchange Board of India (SEBI) with statutory powers for (a) protecting the interests of investors in securities (b) promoting the development of the securities market and (c) regulating the securities market.

1. Regulatory Functions


 a). Registration of brokers and sub-brokers and other players in the market

 b). Registration of collective investments schemes and Mutual Funds

 c). Regulation of stock exchanges and other self-regulatory organisations (SRO) merchant banks etc

 d) Prohibition of all fraudulent and unfair trade practices

 e) Controlling Insider Trading and take over bids and imposing penalties for such practices


2. Developmental Functions


 a) Investor education

 b) Training of intermediaries.

 c) Promotion of fair practices and Code of conduct for all S.R.O.s

 d). Conducting Research and Publishing information useful to all market participants

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