The Act of 1992 established the Securities and Exchange Board of India (SEBI) as the regulator of the Indian stock market. Regulatory agencies play a crucial role in maintaining stability, fairness, and openness in the constantly changing financial industry. The Securities and Exchange Board of India is at the centre of this regulatory system, which has considerable authority and responsibility for managing the nation’s securities market. It acts as an official body of the Indian Government. It was implemented to promote openness, efficiency, and transparency in the Indian financial sector.
TO KNOW MORE ABOUT SEBI –
Understanding SEBI: The Authority Of Indian Securities Market
SEBI: ORGANIZATION STRUCTURE, IMPORTANT RULES AND GUIDELINES 2024
Let’s examine and understand its significant duties and authorities and highlight how crucial part it has played in forming the financial sector in India.
FUNCTIONS OF SEBI:
As a regulatory organization, It has the authority to carry out essential tasks. These powers given to the regulating body are described in the SEBI Act of 1992. Its responsibilities are financial negotiation, investor and trader protection, and securities issuing.
The following are the important functions of SEBI:
1. Investor protection –
It plays an important role in protecting Indian investor’s interests in the securities industry or the stock market.
2. To promote development with trouble-free functioning –
It promotes development and a free environment for the stock market to function efficiently.
3. Regulate the business trading activity –
It regulates trading activities smoothly so that investors can trade or invest in the best way.
4. To serve as an important platform –
It acts as a platform for registrars, share transfer agents, commercial bankers, investment advisers, financial institutions, stockbrokers, and portfolio managers.
5)Regulate various tasks –
It controls the responsibilities assigned to parties such as international portfolio investors, customers with deposits, credit rating agencies, and securities caretakers.
6. Educate investors –
It informs and educates investors about the middlemen that operate in the securities markets.
7. Prevent Fraud –
It criminalises dishonest and unfair business practices in the securities industry and its associated fields.
8. Monitoring –
It keeps an eye on share purchases and corporate takeovers.
9. Promote Efficiency in the stock market-
It maintains the securities market’s efficiency and currentness through appropriate research and innovative strategies.
POWER OF SEBI:
The main power is as follows:-
1. Quasi-Judicial –
When it comes to fraud and other unethical activities in the securities industry, It has the power to issue judgments. This promotes accountability, fairness, and transparency in the securities industry.
2. Quasi-Executive –
It has the authority to implement the rules and decisions, as well as to take action against those who break them. If it discovers any violations of the rules, it has the right to look over books of accounts and other documents.
3. Quasi- legislative –
The authority has been charged with the responsibility of creating relevant rules and regulations to safeguard investors’ interests. These restrictions regularly cover listing requirements, restrictions on insider trading, and mandatory disclosure requirements.
The organization creates guidelines and policies to get rid of unethical practices in the securities industry. The Securities Appellate Tribunal (SAT) and the Supreme Court of India hold the greater authority over the powers and duties of SEBI. The two top bodies must evaluate all functions and related decisions.
CONCLUSION
In conclusion, The roles and authority of SEBI are crucial in improving market integrity, investor confidence, and financial stability in India. With its strict enforcement policies, strict rules and regulations, and consistent commitment to protect investors, It remains a crucial player in determining the development of the Indian securities industry. Protecting investor interests and maintaining market integrity, It acts as a check on wrongdoing and makes sure that India’s financial system runs smoothly.
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FAQs
What are the power and functions of SEBI?
The main functions and powers in short are as follows:
a)protecting Indian investors’ interests
b)educating them about the securities markets and their middlemen. c)promoting the growth and smooth operation of the securities market. d)controlling the securities market’s commercial activities.
What are the powers of SEBI officers?
The power of SEBI officers is mentioned below:
Under Section 10, It is authorized to search any premises or location where it suspects the maintenance of any books of accounts, documents, vouchers, computer disks, or storage devices used in connection with the securities market, and to seize them if required.
How powerful is SEBI?
SEBI is very powerful. It has been in charge of policing and supervising the country’s capital markets as well as all commodities and securities since 1992.
( Source – unacademy.com )
What is the salary in SEBI?
Officers are paid a base money of Rs 44, 500 per month, with annual increases. The gross monthly remuneration of a SEBI Grade A officer is Rs 1,49,500 after various allowances and benefits are added, or around Rs 18 lakhs annually.
( Source – anujjindal.in )
