The sebi full form Securities and Exchange Board of India. In compliance with the terms of the Securities and Exchange Board of India Act, 1992, the Securities and Exchange Board of India was founded on April 12, 1992.
S = Securities and
E = Exchange
B = Board of
I = India
SEBI’s Objectives
SEBI’s main goal is
- Assuring that India’s capital market is functioning efficiently and offering investors a transparent investment environment.
- SEBI was established to prevent capital market fraud in India, and encourage capital market growth.
Structure Of SEBI
SEBI is a hierarchical organization like any other business and has many departments that are led by their respective supervisors. Here is a list containing some of the departments of SEBI.
- National Institute of Securities Market
- Information Technology
- Human Resources Department
- International Affairs Office
- Foreign Portfolio Investors and Custodians
- Department of Derivative and Commodity Market Regulation
- Foreign Portfolio Investors and Custodians
Members Of SEBI
The SEBI senior management is made up of department heads and a board composed of the following directors:
- One chairman and five other members are hired by the Union Government of India
- Two members are employed by the Indian Union Finance Ministry
- RBI (Reserve Bank of India), recruits one member for the SEBI organization.
Functions of SEBI
Three parties are productive in the Indian Capital Market and SEBI fulfills their needs. These three parties are listed below.
- Protects the interests of investors and traders
- Securities issuers
- Finance Intermediaries
Powers of SEBI
The SEBI Act,1992, outlines the power and functions of SEBI. These are the three powers that SEBI holds.
- Quasi judicial – Rulings and Instructions passed.
- Executive Quasi: Conducting enforcement and investigations.
- Quasi legislative: Rules of procedure.