Functions of SEBI: Regulatory and Preventive Functions in English

Contents

Discribe the functions of SEBI.

Functions of SEBI: Regulatory and Preventive Functions

The Securities and Exchange Board of India is a separate Board for the regulation and orderly functioning of the capital market.

The Securities and Exchange Board of India was set up on 12th April 1988 by the Central Government. It was an interim administrative body. In 1992, SEBI ordinance was passed to prepare an Act on 4th April, 1992.

SEBI protects the interest of investors and it promotes development of securities market. For this SEBI do the following functions:

1. Registering and Regulatory Functionaries:

Regulating and controlling the business in stock exchanges.
Regulating acquisition of shares and take over of companies.
Registering and regulating the functioning of brokers, sub-brokers, transfer agents, banks to issue, trustees of trust deeds, merchant bankers, portfolio managers, underwriters etc.
Registering and regulating of working of capital funds and mutual funds.
Regulating self-regulatory organisations.
Regulating and registering the working of the depositories, custodian, participants, foreign institutional investors, credit rating agencies etc.
Regulating and registering the working of venture capital funds and collective investment schemes including mutual funds.
Promoting and regulating self-regulatory organisations.
Promoting investors education.
Promoting training of intermediaries of securities market.
Regulating substantial acquisition of shares.
Performing such functions under the provisions of the Securities Contracts (Regulation) Act, as may be delegated to it by the Central Government.
Levying fee and other charges to carry out the above mentioned purposes.
Conducting research.