Securities and Exchange Board of India (SEBI)


    In News 

    • Securities and Exchange Board of India (SEBI) announced that Madhabi Puri Buch has been appointed as the new Chairman of the board. 
      • The appointment is initially for a period of three years.

    Securities and Exchange Board of India (SEBI)

    • About:
      • SEBI is a statutory body established on April 12, 1992 in accordance with the provisions of the Securities and Exchange Board of India Act, 1992.
    • Background:
      • Before SEBI came into existence, Controller of Capital Issues was the regulatory authority; it derived authority from the Capital Issues (Control) Act, 1947.
      • In April, 1988 the SEBI was constituted as the regulator of capital markets in India under a resolution of the Government of India.
      • Initially SEBI was a non statutory body without any statutory power.
      • It became autonomous and given statutory powers by SEBI Act 1992.
    • Aim
      • To protect the interests of investors in securities and to promote the development of, and regulate the securities market.
      • It is the regulator of the securities and commodity market in India owned by the Government of India.
    • Powers & Functions:
      • It is a quasi-legislative and quasi-judicial body which can draft regulations, conduct inquiries, pass rulings and impose penalties.
      • To protect the interests of Indian investors in the securities market.
      • To promote the development and hassle-free functioning of the securities market.
      • To regulate the business operations of the securities market.
      • To serve as a platform for portfolio managers, bankers, stockbrokers, investment advisers, merchant bankers, registrars, share transfer agents and other people.
      • To regulate the tasks entrusted to depositors, credit rating agencies, custodians of securities, foreign portfolio investors and other participants.
      • To educate investors about securities markets and their intermediaries.
      • To prohibit fraudulent and unfair trade practices within the securities market and related to it.
      • By Securities Laws (Amendment) Act, 2014, SEBI is now able to regulate any money pooling scheme worth Rs. 100 cr. or more and attach assets in cases of non-compliance.

    Source:Business today