The full form of SEBI is the Securities and Exchange Board of India.
SEBI (Securities and Exchange Board of India) is a regulatory body established by the government of India in 1992 to protect the interests of investors in securities and to promote the development of the securities market in India. It functions as an independent and autonomous body with powers to regulate the securities market, issue guidelines and regulations, conduct investigations and enforce penalties.
SEBI’s main objectives include:
- Protecting the interests of investors in securities.
- Promoting the development of the securities market.
- Regulating the securities market and ensuring its orderly growth.
- Encouraging and providing for self-regulatory organizations.
- Prohibiting fraudulent and unfair trade practices in the securities market.
- Regulating the intermediaries in the securities market, such as brokers, merchants, and investment advisors.
SEBI is responsible for ensuring the smooth functioning of the securities market, and it also plays a crucial role in ensuring the transparency and fairness of transactions in the market. It also provides a platform for investors to raise complaints and seek the resolution of disputes.
History of SEBI (Securities and Exchange Board of India)
The Securities and Exchange Board of India (SEBI) was established in 1988 as a non-statutory body to regulate the securities market. It became an autonomous entity on January 30, 1992, when the SEBI Act 1992 was passed by the Indian Parliament, granting SEBI statutory powers. The headquarters of SEBI is located in the business district of Bandra Kurla Complex in Mumbai, with regional offices in New Delhi, Kolkata, Chennai, and Ahmedabad. In Financial Year 2013-2014, local offices were opened in Jaipur, Bangalore, Guwahati, Bhubaneshwar, Patna, Kochi, and Chandigarh.
Before the establishment of SEBI, the Controller of Capital Issues was the regulatory authority, deriving its authority from the Capital Issues (Control) Act, of 1947. The amendment of 1999 brought collective investment schemes under the purview of SEBI, excluding nidhis, chit funds, and cooperatives.
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