Ques. Explain in brief about SEBI.

Ans.

The Securities and Exchange Board of India (SEBI) was established in 1988 and the
powers of regulation, supervision and legislation were given under SEBI Act, 1992.

SEBI is a quasi-legislative, quasi-judicial and quasi-executive statutory body

established under SEBI Act of 1992.

Its main purpose is to protect the interests of the investors and to promote and
regulate the securities market.

Following are main functions of SEBI

1. Providing market place for issuers to raise finance through different financial
instruments
2. Promote the securities market by maintaining competetive professional
environment for intermediaries like Stock Brokers, Stock Exchanges, merchant banks
etc.
3. Protect the interests of investors by providing precise and accurate
informations
4. Regulation and supervision of Issuers, Intermediaries and Investors
5. Drafting legislations for securities market
6. Conduct Enquiries on issuers and intermediaries
7. Pass rulings and impose penalties
8. Regulation of all money pooling schemes having value greater than 100 Crores.

Due to the immense power being vested in the hands of SEBI by GoI, it was decided
to provide a platform in interest of entities who are aggrieved by the decision of
SEBI. Thus, Securities Appelate Tribunal (SAT) was setup. However, entities can
approach Supreme Court of India in case of dissatisfaction from SAT's decision.

Many changes has been introduced in the Securities market by SEBI to improve
efficiency and to promote investments

1. In 2023, T+1 Days Trading settlement system has been introduced which will be
implemented in a phased manner.
2. In 2009, Entry load in Mutual fund was banned by SEBI.
3. In 2003, SEBI introduced mechanism for registration of Foreign Instituional
Investors (FII). SEBI discourages investments of FIIs thourgh P-notes to restrict
the flow of black money in the market.
4. SEBI has introduced e-IPOs which has improved transperency in allotments.
5. SEBI has also introduced Index-based Circuit breakers in Stock Exchange Market
to control panic selling and mass buying.
a. Market is suspended for 1 hour, in case of movement of Index in range of
+/-10%.
b. Market is suspended for 2 hour, in case of movement of Index in range of
+/-15%.
c. Market is suspended for the day, in case of movement of Index in range of
+/-20%.