What is SEBI | Securities and Exchange Board of India

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SEBI 

SEBI Introduction 

The full form of 'SEBI' is the Securities and Exchange Board of India. SEBI was founded on 12 Apr in the year 1992 after the 1992 securities scam, which is also known as Harshad Mehta Scam

This Scam had affected the Indian economy badly, so the government made an authority in the Stock Market which will establish and regulate new bylaws in the Stock Market.

What is the Role & functions of SEBI?

  1. To regulate the Securities (Equity) Market in India.
  2. To establish rules and regulations in the Securities (Equity) Market.
  3. To monitor the fraudulent activities in the Stock Market.
  4. To monitor the transactions taking place through DII (Domestic Institutional Investors).
  5. To monitor the transactions taking place through FII (Foreign Institutional Investors).
  6. To monitor the transactions taking place through Retail Investors.
  7. To monitor the IPO's and FPO's offered by the Companies.
  8. To gain the respect of the Indian Stock Market for attracting Foreign Investors.
  9. To monitor the activities of Financial Intermediaries such as Brokers and Sub-brokers.
  10. To spread awareness about the Fraudulent activities to the Investors.

SEBI
SEBI

Details 

SEBI operates in a total of 17 Stock Exchanges of India, including NSE and BSE.SEBI's headquarters are located in Mumbai and it has other branches which are known as its Regional offices are located in New Delhi, Chennai, Kolkata and Ahmedabad  SEBI has 8 Board of Directors and only one Chairman. These 8 Board of Directors are appointed by distinct parts of government organizations. 

Mr. Ajay Tyagi is the current SEBI chairman who is holding his post from 1st March 2017. The chairman of SEBI is nominated by the Central Government. While out of the eight Board members, two members are appointed by The Union Finance Ministry and one member by the RBI (Reserve Bank of India). And the remaining five Board Members are appointed by the Union Government.

SEBI also takes exams and recruits people and also educate them which will help them educate many peoples as a coach and resulting it in the literacy of people about the stock market in India.

Powers 

  1. It has the power of regulating and making any bylaws of Stock Exchanges.
  2. It has the power to inspect the financial record of the Brokers and Sub-brokers also called as financial intermediaries.
  3. SEBI has the power to stop any company from listing in a stock exchange if it wants to.
  4. It also can handle the registration Stockbrokers.
  5. It can also handle the registration of Investors.

Objectives 

  1. To ensure that the Indian Stock Market should function in an orderly manner.
  2. To provide such a healthy environment that will protect the interest of Investors and Traders in the Market.
  3. To develop the Equity Market.

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