What Is SEBI And The Main Role Of SEBI?


In the present scenario, the SEBI plays an essential role in regulating all players who operate in the Indian capital markets. Its main attempt is to protect the investor’s interest and the main aim is to develop the capital markets by enforcing different rules and regulations. SEBI stands for Securities and Exchange Broad of India. This article explains you more details about what is sebi what is the main role of sebi.

What is SEBI?

The Security and Exchange Broad of India is the most essential regulatory body of the securities market in India. It is established in the year 1992 on 12th April. Its main aim is to monitor as well as regulate Indian capital as well as securities while ensuring regulations and rules. The head office of SEBI is located at Bandra Kural Complex at Mumbai. Moreover, it has regional offices in Kolkata, Chennai, New Delhi, etc. The main goal of SEBI is to guarantee that the Indian capital market works in a systematic manner and offers investors a transparent environment for their investment. Another main reason for setting up SEBI is to prevent malpractices in India as well as promote the development of the capital market.

What is the main role of SEBI in the financial market?

SEBI was mainly established in order to regulate the financial market in India. It protects the interests of the investors in securities as well as to promote the development of the securities. If you are a banking aspirant it is essential to know more knowledge about SEBI. Basically, it promotes orderly development in the stock market. The main aim of SEBI is mentioned below:

  • To regulate activities in the stock market
  • To ensure safe investments
  • To prevent fraudulent practices
  • Protect the interests of investors
  • To promote investors education as well as training intermediaries
  • To regulate self-regulatory organizations

What are the functions of SEBI?

One of the main aims is to establish a SEBI is to protect the investor’s interest in securities as well as to promote the development of securities in the stock market. Its functions are mainly divided into three parts which are mentioned below:

  • Protective function

SEBI performs various functions in order to provide a safe as well as a transparent environment for investors. The main functions of protective are to prevent price rigging, prohibit insider trading, investor’s financial education, and SEBI regulations. SEBI guarantee that these functions are prohibited in advance by enforcing its law guidelines.

  • Development functions

Development function brings fresh breathe as well as innovations in the financial market. This function includes the introduction of electronic platform, discount brokerage, buy & sell mutual funds, training for financial intermediaries, reduce the cold of the problem and permit IPO via exchange.

  • Regulatory function

This type of function mainly refers to the SEBI enforcement to financial intermediaries plus corporates. This makes sure that the stock market will run smoothly with transparency. Its main job is to register as well as regulate the mutual funds functioning.