SEBI is called as Security and Exchange Board of India and sebi was established in12April 1992 via SEBI Act, 1992. The main reason for SEBI is to regulate the securities market. The headquarters is located in BandraKurla Complex Mumbai. SEBI will regulate the Indian Capital Market by means of securing the interest of investors and establishing the rules. At the same time it means a lot for the development of the capital market.
Why SEBI Established?
In the course of 1980s people choose to work in the capital market. It brings so many numbers of issues such as unofficial private placements, the rigging of prices, unofficial self-styled merchant bankers initiate to break the rules and regulations that come under stock exchange. It reflects in the delay of the shares.
In order to bring all these things to a normal state Government established SEBI that is Security and Exchange Board of India to secure market.
What are the objectives?
Here come the objectives of SEBI,
The main reason for SEBI is to protect the rights as well as the interests of the people that are available in the stock market. It will guide and take their interests and investment in the proper way. Once people found secured then for sure they will choose to invest. This is what the main reason for SEBI.
Stand against fraud:
The second most reason for the SEBI is that to protect people from all the fraudulent that will happen in the stock exchange. Thus it will become even protective.
Offer regular functioning:
When you comes to the establishment of the SEBI as mentioned before people choose to work in capital market. So with the aim to regulate the capital market as well SEBI is there. At the same time it will promote functioning of the stock exchange. It will also monitor the functioning of the financial intermediaries and bring the securities industry to a proper state.
By means of SEBI statutory regulation as well as self-regulation belongs to the securities industry will be in balance. Thus there is no much issues and problems will come.
In order to set up code of conduct:
Along with the above mentioned things, the SEBI means a to develop as well as regulate code of conduct. It is to protect and then act as a shield for brokers, underwriters and others from fraud.
How beneficial it is?
The main reason for sebi was established in the correct duration is to make the market and its functioning to a proper state. Bymeans of this investors gain much benefits that are
- Increasing the trading volumes
- Linking with the Global Markets
These are the benefits gained by investors. At the same time as an investor you will believe and get interest in stock exchange. No matter SEBI is there to protect thus investors will acquire efficient and best trading process. The cost is also comes within the budget.