SEBI: Overview for SEBI Exam

SEBI Introduction

Brief Introduction of SEBI

The Indian Securities Market has a prolonged history of about 150 years; however, it started its modern transformation in the early 1990s when the country decided to go along the path of Economic Liberalism.

The Securities and Exchange Board of India was established on April 12, 1992 in accordance with the provisions of the Securities and Exchange Board of India Act, 1992. It is now an autonomous body with separate legal entity and a perpetual succession. It has its headquarters in the district of Bandrakurla complex in Mumbai.

What is the Preamble of SEBI?

The Preamble of the Securities and Exchange Board of India describes the basic functions of the Securities and Exchange Board of India as

“…to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto”.

Who manages SEBI?

SEBI is managed by its members which consist of the chairman who is nominated by the union government , two members who are officers of union finance ministry, one member from reserve bank of India and the remaining four members are nominated by the union government of India out of whom three should be whole time members.

Objectives of SEBI

  1. It regulates the Activities of Stock Exchange
  2. It protects the Rights of Investors and ensures the safety of their investment
  3. It prevents fraudulent and malpractices by having balance between self regulation of business and its statutory regulations.
  4. It regulates and develops a code of conduct for intermediaries such as brokers and underwriters

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