The Securities and Exchange Board of India (SEBI) is the regulatory authority overseeing the securities

and commodity markets in India. It was established on April 12, 1992, through the SEBI Act 1992. SEBI
operates as an autonomous body and works towards maintaining the integrity of the securities market,
protecting investor interests, and promoting the development of the capital markets in India.

**Structure of SEBI:**

SEBI operates with a three-tier structure:

1. **Chairman:**
- The Chairman is appointed by the Government of India and holds a five-year term. The Chairman is
responsible for the overall administration of SEBI and presides over the Board meetings.

2. **Board:**
- The SEBI Board consists of a maximum of nine members, including the Chairman. These members are
appointed by the central government, including officials from the Ministry of Finance, Reserve Bank of
India (RBI), and others with expertise in finance, law, economics, business, or accountancy.

3. **Committees:**
- SEBI constitutes various committees and advisory panels to assist in policymaking and decision-
making processes. These committees include market intermediaries regulation and supervision, primary
markets, secondary markets, and legal affairs.

**Powers of SEBI:**

1. **Regulatory Powers:**
- SEBI has the authority to regulate the securities market by formulating rules and regulations. It
constantly updates and amends regulations to align them with market dynamics and ensure investor
protection.

2. **Registration and Regulation of Intermediaries:**

- SEBI is responsible for the registration and regulation of market intermediaries, such as stockbrokers,
sub-brokers, depositories, merchant bankers, and mutual funds. It establishes eligibility criteria, code of
conduct, and monitors their activities to safeguard investors.

3. **Monitoring and Surveillance:**

- SEBI uses technology-driven surveillance systems to monitor and detect irregularities in the securities
market. This includes market manipulations, insider trading, and other fraudulent activities.

4. **Adjudication and Enforcement:**

- SEBI has the power to adjudicate on violations of securities laws and regulations. It can impose
penalties, suspend trading activities, or cancel registrations in case of non-compliance. This ensures that
market participants adhere to prescribed norms.
5. **Educational Initiatives:**
- SEBI promotes investor education through various initiatives. It conducts awareness programs,
publishes educational materials, and collaborates with educational institutions to enhance financial
literacy.

**Functions of SEBI:**

1. **Protecting Investors' Interests:**

- SEBI's primary function is to protect investors' interests by ensuring fair and transparent dealings in
the securities market. It establishes regulations to prevent fraudulent activities and provides
mechanisms for grievance redressal.

2. **Regulating Securities Markets:**

- SEBI regulates both primary and secondary markets. In the primary market, it oversees the issuance
of securities through initial public offerings (IPOs) and ensures compliance with disclosure norms. In the
secondary market, it monitors trading activities to maintain market integrity.

3. **Development of the Capital Market:**

- SEBI plays a crucial role in the development of the capital market by introducing reforms and
initiatives to facilitate capital raising, encourage innovation, and attract both domestic and foreign
investments.

4. **Promoting Fair Practices and Market Integrity:**

- SEBI ensures fair practices in the securities market by prohibiting insider trading, market
manipulation, and fraudulent activities. It formulates and enforces a code of conduct for market
participants to maintain the integrity of the market.

5. **Regulating Intermediaries:**
- SEBI regulates various market intermediaries, setting eligibility criteria, prescribing a code of conduct,
and monitoring their activities to protect investors' interests.

6. **Risk Management:**
- SEBI focuses on implementing risk management practices in the securities market, introducing
measures to mitigate systemic risks and enhance market resilience.

7. **Prohibiting Insider Trading:**

- SEBI is responsible for preventing insider trading by formulating regulations and conducting
investigations to identify and penalize individuals involved in such practices.

8. **Monitoring and Surveillance:**

- SEBI utilizes advanced technology for monitoring and surveillance of the securities market, employing
tools like data analytics and artificial intelligence to detect market abuses and irregularities.
9. **Enforcement of Securities Laws:**
- SEBI has the authority to enforce securities laws in the country, investigating violations, conducting
inquiries, and taking appropriate legal action against individuals or entities found guilty of non-
compliance.

10. **Educational Initiatives:**

- SEBI promotes investor education through various initiatives, including awareness programs,
guidelines, publications, and collaborations with market participants to enhance financial literacy among
investors.

**Significance of SEBI:**

1. **Investor Protection:**
- SEBI's regulations and initiatives are designed to protect the interests of investors by ensuring fair
practices, disclosure norms, and efficient dispute resolution mechanisms.

2. **Market Integrity:**
- By monitoring and regulating various aspects of the securities market, SEBI contributes to maintaining
market integrity and preventing malpractices.

3. **Capital Market Development:**

- SEBI's continuous efforts to introduce reforms and initiatives contribute to the development of the
capital market, attracting investments and fostering economic growth.

4. **Transparent Operations:**
- SEBI's regulations and enforcement mechanisms ensure that market participants operate
transparently, providing investors with accurate information for decision-making.

5. **Systemic Stability:**
- SEBI's focus on risk management contributes to systemic stability by mitigating risks and enhancing
the resilience of the securities market.

6. **Global Competitiveness:**
- SEBI's initiatives to align with global best practices enhance the competitiveness of the Indian
securities market on the global stage.

In conclusion, SEBI's powers and functions are integral to maintaining the efficiency, transparency, and
integrity of the securities market in India. The regulatory authority plays a crucial role in investor
protection, market development, and ensuring fair practices among market participants. As the Indian
economy evolves, SEBI continues to adapt its regulations and strategies to meet the challenges of a
dynamic and growing financial landscape.