Every investor in the stock market needs to know about SEBI because it protects the interests of investors and protects them from fraud in the stock market. SEBI keeps its watch over the entire capital market of India and also imposes necessary rules from time to time for the capital market. SEBI also takes legal action against the violators of SEBI rules.
In today’s article, you will get useful information about SEBI. In this article, we have made you aware of what is SEBI, when SEBI was established, why SEBI was formed, the main functions of SEBI, and the powers of SEBI so that you can get proper information about SEBI.
So let’s start this article without taking much time from you people and know what is SEBI.
SEBI (Securities and Exchange Board of India) i.e. Securities and Exchange Board of India is a statutory body that monitors the functioning of the stock market in India. SEBI regulates the trading of shares, and mutual funds, and acts as a regulator in the Indian stock market. The main function of SEBI is to protect the interest of investors and develop and manage the stock market by implementing new rules from time to time.
Any company has to get registered with SEBI before withdrawing its shares in the stock market, SEBI makes the company strictly follow the rules of the stock market so that fraud can not happen with the investor.
| सेबी का गठन | 30 जनवरी 1992 |
| मुख्यालय स्थान | मुंबई, महाराष्ट्र, भारत |
| स्वामित्व | वित्त मंत्रालय, भारत सरकार के अधीन |
| अध्यक्ष | अजय त्यागी (आईएएस) |
| वेबसाइट | Sebi.Gov.In |
(SEBI Full form )
The full form of SEBI is the Securities and Exchange Board of India which is called the Securities and Exchange Board of India.
SEBI was established on 12 April 1988 as a non-constitutional body. On 30 January 1992, the Government of India gave constitutional status to SEBI through an ordinance in Parliament. The headquarters of SEBI is located in Mumbai and SEBI has regional offices in four other metropolitan cities of Delhi, Chennai, Kolkata, and Ahmedabad.
The role of the Securities and Exchange Board of India is that any large business or market monitoring organization needs to listen to the public and impose appropriate fines on the person or company who cheated them. When fraud started increasing in the stock market, there was a need for an institution that could control the stock market and protect the interests of investors.
Then SEBI was started on 12 April 1988 and SEBI was also given constitutional status on 30 January 1992, since then SEBI keeps an eye on the activities in the stock market. Any company that withdraws its shares also has to follow the rules of SEBI. With the advent of SEBI, the cases of fraud in the stock market came down and investors were able to buy shares without any fear.
SEBI consists of a team of 9 members, out of which one member is the Chairman, who is nominated by the Government of India. The tenure of the chairman of SEBI is 3 years or till the age of 65 years, thus the tenure of the chairman of SEBI is not fixed.
Out of the remaining 5 members, two members are knowledgeable in the Ministry of Finance and 2 members are knowledgeable in the law. Out of 9 members of SEBI, one member is from RBI. He is selected from amongst the officers of the Reserve Bank of India. The current Chairman of SEBI is Shri Ajay Tyagi, who is the Chairman of SEBI since 1st March 2017 till date.
The main functions of SEBI are as follows –
SEBI mainly has three powers –
SEBI reserves the right to pass judgments relating to fraud and other unethical practices with reference to the securities market. It helps in ensuring fairness, transparency, and accountability in the capital markets.
SEBI has the power to enforce decisions and rules and also has the power to take legal action against those who do not follow the rules. SEBI has the right to examine the account book and other documents in case of violation of rules.
SEBI has the power to make rules and regulations to protect the interests of investors. Some of its Regulations include Insider Trading, Listing Obligations, Disclosure Requirements, etc.
The board of SEBI consists of nine members, its organizational structure is as follows.
The full name of SEBI is the Securities and Exchange Board of India, which is called the Securities and Exchange Board of India.
SEBI was formed to prevent fraud in the stock market and protect the interests of investors.
SEBI was established on 12 April 1988 under a non-constitutional body but on 30 January 1992, SEBI was given constitutional status.
The headquarter of SEBI is located in Mumbai.
The current Chairman of SEBI is Shri Ajay Tyagi, who became the Chairman of SEBI on 1st March 2017.
First Chairman of SEBI Dr. It was S. A. Dave who became the chairman of SEBI on 12 April 1988 and his tenure lasted till 23 August 1990.
The term of the Chairman of SEBI is 3 years or till the age of 65 years. Earlier the tenure of the Chairman of SEBI was 5 years but later the Government of India reduced it to 3 years.
An institution like SEBI was needed to prevent fraud in the stock market in India. Since the advent of SEBI, the control of India’s capital market went into the hands of SEBI, so that it was possible to protect the interests of investors.
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