From Regulation to Enforcement: Understanding SEBI’s Role in India’s Economy
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What is SEBI? The Securities and Exchange Board of India (SEBI) is the regulatory authority for the securities market in India. It was established to protect investors' interests, ensure fair trading practices, and regulate the stock market. When and Why was SEBI Founded? SEBI was originally set up in 1988 as a non-statutory body to oversee and regulate India’s securities market. However, after realizing the need for a stronger regulatory framework to prevent market malpractices, the Indian government granted SEBI statutory powers through the SEBI Act, 1992 . The primary reasons for SEBI’s establishment include: Curbing market manipulation and fraud Protecting investors from unethical practices Ensuring transparency and fair trading Regulating intermediaries like stock exchanges, brokers, and mutual funds Functions of SEBI SEBI operates with the following key functions: Regulatory Functions: Formulating guidelines and rules for stock market operations. Regulatin...