The Securities and Exchange Board of India SEBI is the regulator for the securities market in India.

Question

Justify the following statement.

The Securities and Exchange Board of India SEBI is the regulator for the securities market in India.

Answer 1

• The Securities and Exchange Board of India was set up on 12th April 1988. The main purpose of setting up SEBI was to develop and regulate stock exchanges in India.
• The objectives of SEBI are to protect the interest of the investors and regulate the securities market in India.
• To bring professionalism in the working of intermediaries in the capital markets, i.e., brokers, mutual funds, stock exchanges, Demat- depositories, etc. is also a feature of SEBI.
• The role of SEBI also includes creating a good financial climate, so that companies can raise long-term funds through the issue of securities – shares and debentures.
• The main function of SEBI is to register and regulate the working of stockbrokers, sub-brokers, share transfer agents, bankers to an issue, trustee of trust deeds, registrars to an issue, merchant bankers, underwriters, and such other intermediaries who may be associated with securities market.
• Thus, it is rightly said that SEBI is the regulator of the securities market in India.