Investor Protection Dr. Muzaffar Ahmad Dar The

Transcript:Investor Protection Dr. Muzaffar Ahmad Dar The:
Investor Protection Dr. Muzaffar Ahmad Dar The Securities and Exchange Board of India (SEBI) is the regulatory authority responsible for overseeing and regulating the securities market in India. It was established in 1988 as a non-statutory body and was subsequently given statutory powers through the SEBI Act of 1992. SEBI's primary objective is to protect the interests of investors, ensure fair and transparent market practices, and promote the development and regulation of the securities market in India. Here are the key functions and roles of SEBI: Regulation and Supervision: SEBI formulates rules, regulations, and guidelines to regulate various segments of the securities market, including stock exchanges, intermediaries, and market participants. It conducts regular inspections, audits, and investigations to monitor compliance with its regulations and ensure fair market practices. Investor Protection: SEBI works to safeguard the interests of investors by ensuring that companies provide accurate and timely information to the public, thereby promoting transparency and reducing information asymmetry. It takes measures to prevent fraudulent and unfair trade practices that could harm investors. Development of Market Infrastructure: SEBI plays a crucial role in the development and modernization of the securities market infrastructure, including stock exchanges, depositories, and clearing corporations. It encourages the adoption of advanced technologies to enhance market efficiency and transparency. SEBI Licensing and Regulation of Intermediaries: SEBI regulates various intermediaries in the securities market, such as brokers, investment advisors, mutual funds, portfolio managers, and credit rating agencies. It issues licenses to these intermediaries and monitors their activities to ensure they operate within the defined regulatory framework. Monitoring Insider Trading: SEBI monitors and regulates insider trading activities to prevent individuals with access to non-public information from benefiting unfairly in the market. Regulation of Takeovers and Mergers: SEBI oversees and regulates the process of takeovers and mergers, ensuring that such activities are conducted in a fair and transparent manner. Investor Education and Awareness: SEBI undertakes initiatives to educate and create awareness among investors about the functioning of the securities market, their rights, and the risks associated with investing. Research and Policy Development: SEBI conducts research, studies market trends, and develops policies to facilitate the growth and development of the securities market while ensuring investor protection. Enforcement of Regulations: SEBI has the authority to take enforcement actions against entities or individuals that violate its regulations. These actions can include penalties, fines, disgorgement of ill-gotten gains, and even barring individuals from participating in the