
SEBI refers to securities exchange Board of India introduced to promote transparency in the Indian investment market. Its headquarter in Mumbai with various regional offices all over the country including, New Delhi, Ahmedabad, Kolkata and Chennai.
SEBI is a statutory body of the Government of India to safeguard the interest of investors and aims to generate a safe investment environment by implementing several rules and regulations. It was established on the 12th of April in 1992. In other words, it acts as a guard for all the capital market participants and its main purpose is to provide such an efficient and smooth working of the securities market.
The main aim of SEBI is to ptotect the investors and regulates the activities of stock market. Its objectives are:
1. To safeguarg the rights of investors and ensuring safety to their investments.
2. To put a stop to malpractices by having parity between self regulations of business and its statutory regulations.
3. To develop a code of conduct for intermediaries such as brokers, agents, underwriters, etc.
The SEBI performs various functions to accomplish its target. There are three major functions which are as follows:
It means to protect the interest of the investors with safety of investments. It includes the various functions like, manipulating the prices of securities with the aim of escalate the market price of various securities. SEBI disallow the fraudulant pratices.
SEBI keeps a regular check on buying and selling the securities and take corrective action if necessassry.
It includes development activities such as Training programmes for the intermediaries of the stock market, adopting internet trading through stock agents/brokers, made optional underwriting to reduce the cost of issue,etc.
To regulate the activities of stock market there are some following functions which are performed by SEBI:
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Business Studies Educator
Mrs. Amanpreet Kaur holds a BBA and MBA degree and has over 10 years of teaching experience in business studies and management concepts.
This guide covers "SEBI-its Meaning, Objectives, and Functions", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Business Studies Class 12.
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