SEBI AS A REGULATOR
The Securities and Exchange Board of India (SEBI) is the regulator for the securities market in India. It was established in the year 1992 and given statutory powers on 12 April 1992 through the SEBI Act, 1992.
Reasons for Establishment of SEBI:
With the growth in the dealings of stock markets, lot of malpractices also started in stock markets such as price rigging, ‘unofficial premium on new issue, and delay in delivery of shares, violation of rules and regulations of stock exchange and listing requirements. Due to these malpractices the customers started losing confidence and faith in the stock exchange.
So government of India decided to set up an agency or regulatory body known as Securities Exchange Board of India (SEBI).
Functions of the SEBI are as follow:
1. Regulate the business in stock exchanges and any other securities markets.
2. Register and regulate the working of capital market intermediaries like as brokers, merchant bankers, portfolio managers and so on.
3. Register and regulate the working mutual funds.
4. Promote and regulate self-regulatory organizations.
5. Prohibit fraudulent and unfair trades’ practices in securities markets.
6. Promote investors’ education and training of intermediaries of securities markets.
7. Prohibit insider trading securities.
8. Regulate substantial acquisition of shares and takeover of companies.
9. Perform such other functions as may be prescribed by the government.
10. Review any intermediary or market participant information.
11. Review books of depository participants, issuers of beneficiary owners.
12. Investigate and inspect books of accounts and record of insiders.
13. Suspend the registration of banker if and quarry is there.
14. Suspend certificates and registration if and quarry is there