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Securities and Exchange Board of India

Check out the details about Securities and Exchange Board of India.

Table of Content

Introduction

The Securities and Exchange Board of India (SEBI) was established as part of the capital market reforms, initiated by the Government of India.
As part of the reform, the government abolished the Office of the Controller of Capital Issues (CCI) and granted statutory recognition to the SEBI.
SEBI was established as a statutory body in the year 1992 and the provisions of the Securities and Exchange Board of India Act, 1992 (15 of 1992) came into force on January 30, 1992.

Functions and Powers of SEBI

Functions

To protect the interests of investors in securities.
To promote the development of, and to regulate the securities market.

Powers

SEBI has been vested with the necessary powers concerning various aspects of capital market such as:

Regulating the business in stock exchanges, and any other securities market.
Registering and regulating the working of various intermediaries and mutual funds.
Promoting and regulating self-regulatory organizations.
Promoting investor education and training of intermediaries.
Prohibiting insider trading and unfair trade practices.
Regulating substantial acquisition of shares and takeover of companies.
Calling for information, undertaking inspections, conducting inquiries and audit of stock exchanges, and intermediaries and self-regulation organizations in the stock market.
Note: Performing such functions and exercising such powers under the provisions of the Capital Issues (Control) Act, 1947 and the Securities Contracts (Regulation) Act, 1956 as may be delegated to it by the Central Government.

Note:

Earlier, SEBI used to regulate stock exchanges, and the Forward Market Commission used to regulate commodities markets.
However, the Forward Market Commission was abolished in 2015. The powers to regulate commodities markets were also vested in SEBI.

Additional Information

Securities Appellate Tribunal

Securities Appellate Tribunal is a statutory body established under the provisions of Section 15K of the Securities and Exchange Board of India Act, 1992.
It was established to hear and dispose of appeals against orders passed by the Securities and Exchange Board of India or by an adjudicating officer under the Act; and to exercise jurisdiction, powers and authority conferred on the Tribunal by or under this Act.