Introduction

Securities and Exchange Board of India or SEBI refers to a government authority in India that is responsible for exercising a tradable financial asset called securities in a regulating and licensing capacity. SEBI works under the Ministry of Finance, Government of India, over-regulating the securities market. The agency was formed 33 years ago on April 12, 1988, and acquired a statutory status on January 30, 1992. The Securities and Exchange Board of India headquarters is situated in Mumbai, Maharashtra. The basic function of SEBI is to be reacting positively towards the three major market constituents and satisfy their needs for its growth and development.

Introduction

The Securities and Exchange Board of India is an organisation that has the authority to check the activities of the Indian Capital and the securities market, ensuring the interest of its vast investors, and devise directives related to it. The head office of SEBI, named SEBI Bhavan, is situated at Bandra Kurla Complex, Mumbai. It came into existence as a non-statutory body formed by executive action on April 12, 1988. Still, it got the regulatory and statutory status after three years on January 30, 1992, following through the Securities and Exchange Board of India Act 1992 by nations parliament. The mission requires strong adherence and expertise in shielding the investors and others who rely on their market to secure their financial futures. The role of SEBI includes monitoring securities trading and offering advice to the investors that should be performed fairly and honestly.

Securities and Exchange Board of India Logo

The Securities and Exchange Board of India Logo comprises the first character of the agency’s main aggregates. The importance of a logo is to help the outer world identify the organisation and assure them about their reach to the right place. The logo is used to depict the meaning intended and prevent any falsification. The SEBI logo is designed with true clarity and rationale ideation with no extra complexity serving the purpose of identification without any confusion or misrepresentation issues.

Structure of SEBI

Its board of members runs the regulatory body. There are 20 departments under the organisation, each managed by a department head and eight committees. The Securities and Exchange Board of India has a collective shell of 9 members from various, some members are whole-time workers, and some are part-time workers.

The hierarchical structure of the Securities and Exchange Board of India includes the following members:

  • The Chairman of SEBI is preordained selected by the Union Government of India.
  • Two members from the Central Finance Ministry
  • One member from the officials of Reserve Bank of India
  • The Union Government designates the other five members out of which needs to be full-time workers

The current Chairman of SEBI is Ajay Tyagi, appointed on the 10th of February, 2017 in place of U K Sinha and owned the designation on 1st March,2017. 

Role of SEBI

The main role of SEBI is to keep the confidence and the faith of the three associated groups safe and meet their needs.

  • Issuers: The organisation secures the issuers’ security environment that raises funds from the various sources of the market and provides a clean and healthy working domain for them.
  • Investor: SEBI tends to provide accurate information for those who keep the market active and safeguard their belief as they had invested their money in the market with the faith of positive returns.
  • Financial Intermediaries: The organisation also take care of the intermediaries as all the functions are processed and completed smoothly and efficiently because of the financial intermediaries.

Functions of SEBI

There are mainly three functions of the Securities and Exchange of India.

  • Protective Functions: The functions of SEBI include keeping a check on the agency’s functioning, prohibiting the malpractices like Insider Trading, Price Rigging, etc. It ensures the protection of the financial concerns of the parties involved and promotes fair trade practices. It also initiates to educate investors to evaluate and analyse the most profitable securities to promote their future financial security.
  • Developmental Functions: SEBI tries to promote the overall development of the stock exchange by providing training to its employees and adopting a more flexible approach by getting through internet trading, which helps overcome various barriers and increase the feasibility of actions.
  • Regulatory Functions: SEBI has framed various rules and regulations to regulate the working of the stock market. It also registers all the participants associated with SEBI or stock exchange in any manner. The intermediaries and corporates are also enforced with guidelines and a code of conduct.

Objectives of SEBI

The objectives of SEBI include the following:

  • The first and foremost objective of the Securities and Exchange Board of India is to modulate the activities of stock exchanges so that the services are provided efficiently to the parties involved.
  • The interest of investors needs more significance as there exists no capital market in the absence of money allocators. The investors are to be satisfied by keeping on all the activities to prevent any kind of misinformation. The investors need to be educated, and fair services should be provided to protect their financial concerns leading to the growth of the overall economy.
  • One of the most important objectives of SEBI is to ensure that any kind of malpractice should not take place with confidential information. SEBI needs to nullify any chances of Insider Trading to secure investors’ trust. 
  • SEBI was established to control the capital invested, so it is important to have a continuous watch over all the intermediaries or brokers involved.

Conclusion

SEBI or Securities and Exchange Board of India plays a crucial role in monitoring the activities being performed and the performers. Also, it ensures the working of the Indian Capital Market and the growth and development of the overall economy. SEBI performs all of its functions efficiently for the smooth working of the capital market. It fulfils its role towards issuers, investors and financial intermediaries for setting the seal to accomplish its mission and provide transparent functioning of the organisation. SEBI guards the rights of the concerned participants and drives through the structure of faith and respect. Thus, SEBI is a regulatory authority established to protect our hard-earned money and make the process of buying and selling stocks more feasible.