What is SEBI and its function?
The Securities and Exchange Board of India (SEBI) is a regulatory body. It was founded on April 12, 1992, under the SEBI Act, 1992. It is responsible for the regulation of the Indian securities and capital markets.
Its main functions are the following:
- Protect the interest of the traders and investors.
- Promote development of the securities market.
- Regulate the securities market.
- Matters connected to any of the above.
What is the full form of Sebi?
The SEBI stands for The Securities and Exchange Board of India. It is the regulator of the securities and commodity market in India owned by the Government of India.
What are the main objectives of SEBI?
SEBI is responsible of regulation of the Indian capital market. The following are the main objectives of SEBI:
- To safeguard the interest of the investors.
- Ensure the Indian capital market is transparent to its investors.
- The capital market function in a systematic manner.
Why SEBI is formed?
SEBI was established with the objective of safeguarding the investor’s interest, regulate the capital market, and establish a transparent market. Moreover, it has achieved it by introducing rules and regulations, a mandatory revelation of information, etc
What are the powers of SEBI?
SEBI holds three main powers w.r.t. to the Indian capital market:
- Quasi-Judicial. To deliver judgments on practices relating to fraud as well as unethical practices.
- Quasi-Executive. To implement the regulations and judgments. Additionally take legal action against the violators. To inspect the Books of accounts and other documents in case of any violation of the regulations.
- Quasi-Legislative. To frame rules and regulations to protect the interests of the investors. Few instances are insider trading regulations, listing obligation, as well as disclosure requirements.
What is IPO full form?
The IPO stands for Initial Public Offering. It is a process through which a company can raise funds publicly by offering its shares. By owning the shares of a company an investor becomes a part-owner of the company. Any individual who is eligible to enter into a contract can apply for an IPO. However, he/ she must hold a Demat account as all allotments are done only in Demat form.