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What is the Full Form of SEBI

Securities and Exchange Board of India

What is SEBI?

SEBI stands for Securities and Exchange Board of India. In 1992, under the

Of Act of Securities and Exchange Board of India, in April 12 this Securities and Exchange Board of India was established.

What is the basic Structure of SEBI?

  • It works as a corporate sector.
  • All the work or activities are distinct into 5 blocks and every block is supervised by executive director.
  • SEBI head office is situated in Mumbai and further its branches is in cities such as; Delhi, Kolkata and Chennai.
  • To work with both primary and secondary markets, SEBI has formed 2 advisory committees. Investors, market players and eminent persons are included in this committee.

What is the responsibility of SEBI?

SEBI explain Securities and Exchange Board of India as “.to save interests of investors in securities and to promote development of, and to regulate securities market and for matters connected there with or incidental there to”.

SEBI was established to attain requirements of 3 groups.

  1. Issuers: For the fair and easy raise of finance, issuers offer a market place. In this each person raise finance but if it is fair.
  2. Investors: For every area accuracy and right data is necessary. So investors offer safety and supply of accurate and correct information.
  3. Intermediaries: A competitive professional market is available for intermediaries.

What are the Functions of SEBI?

In a single unit named SEBI there are three sub functions merged.

  • quasi-legislative
  • quasi-judicial
  • quasi-executive

What are the different committees of SEBI?

  • Corporate Bonds & Securitization Advisory Committee
  • Committee for review of structure of market infrastructure institutions
  • Mutual Fund Advisory Committee
  • Primary Market Advisory Committee (PMAC)
  • Technical Advisory Committee
  • Takeover Regulations Advisory Committee
  • Advisory Committee for the SEBI Investor Protection and Education Fund
  • Secondary Market Advisory Committee (SMAC)

Why SEBI introduced?

As the stock market is increased day by day, lots of issues are also enhanced for example; people don’t follow regulations of stock exchange, shares are not delivered at right time, illegal premium on latest issue, listing requirements and price rigging etc. Because of all these type of problems, customer doesn’t faith and believes in the stock exchange. All of the above listed issues are the reason of the development of Securities Exchange Board of India (SEBI). So in April, 1992 Indian government established an agency and regulatory body known as Securities Exchange Board of India (SEBI).

What are the Objectives of SEBI?

  1. To maintain or regulating the work of stock market, the major objective of SEBI is to maintain the confidence of end customer, to save interest of investors and to enhance the development of stock exchange.
  2. To save fraudulent or malpractices by maintain balance among self regulation of business and its statutory regulations.
  3. Continue work of stock exchange.
  4. Regulate and design a program of conduct for intermediaries for example brokers, underwriters, etc.

Save rights of investors and grantee safety to investor’s investment.

To meet the objective of SEBI following are the function that are followed by the SEBI. To meet objectives SEBI has three important functions. These are given below:

  • Regulatory functions
  • Protective functions
  • Developmental functions