INTRODUCTION

The Securities and Exchange Board of India (SEBI) is the regulatory body for
the securities market in India. It was established in 1988 as a non-statutory
body and was given statutory powers in 1992 through the SEBI Act. SEBI's
main objective is to protect the interests of investors and promote the
development of the securities market in India. In this 25-page article, we will
discuss SEBI's role, functions, powers, and initiatives in detail.
Table of Contents:
SEBI's Role and Functions
SEBI's Powers
SEBI's Initiatives
SEBI's Regulatory Framework
SEBI's Market Surveillance System
SEBI's Investor Protection Measures
SEBI's Enforcement Mechanism
SEBI's Future Outlook
SEBI's Role and Functions SEBI's primary role is to regulate the securities
market in India. It works towards creating a transparent, efficient, and fair
market for investors. SEBI's functions include:
Registration of Securities SEBI registers securities to ensure that only genuine
companies can offer their securities to the public. This process involves a
thorough examination of the company's financial statements, business plan,
management structure, and other aspects to ensure that the company is
financially stable and has a strong management team.
Regulation of Intermediaries SEBI regulates intermediaries such as brokers,
merchant bankers, and mutual fund managers to ensure that they comply with
the rules and regulations set by SEBI. SEBI also sets standards for their
conduct, qualifications, and capital adequacy.
Prohibition of Insider Trading SEBI prohibits insider trading, which is the use of
confidential information to gain an advantage in the securities market. Insider
trading can have a significant impact on the market's integrity and investor
confidence.
Disclosure of Information SEBI requires companies to disclose information
about their financial performance, business operations, and other aspects to
the public. This ensures that investors have access to accurate information to
make informed investment decisions.
Monitoring of Takeovers SEBI monitors takeovers and acquisitions to ensure
that they are carried out in a fair and transparent manner. It also ensures that
the interests of minority shareholders are protected.
SEBI's Powers SEBI has extensive powers to regulate the securities market in
India. Some of its powers include:
2.1. Powers to Regulate SEBI has the power to regulate the securities market in
India. It can issue rules, regulations, and guidelines to ensure that the market
operates in a fair and transparent manner.
2.2. Powers to Investigate SEBI has the power to investigate violations of
securities laws and regulations. It can conduct inquiries, summon witnesses,
and order the production of documents.
2.3. Powers to Impose Penalties SEBI has the power to impose penalties on
companies and individuals who violate securities laws and regulations.
Penalties can include fines, suspension of trading, and cancellation of
registration.
2.4. Powers to Seize Assets SEBI has the power to seize assets of companies
and individuals who violate securities laws and regulations. This includes the
power to freeze bank accounts and seize property.
SEBI's Initiatives SEBI has taken several initiatives to promote the development
of the securities market in India. Some of its initiatives include:
3.1. Introduction of SEBI Online Portal SEBI has introduced an online portal
that enables investors to access information about their investments and
complaints. The portal also provides a platform for companies to file
regulatory documents.
3.2. Introduction of Unified Payment Interface (UPI) SEBI has introduced UPI to
facilitate online payments for investors. This has made it easier for investors
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