Main functions of SEBI.

SEBI (Securities and Exchange Board of India) is the regulatory body responsible for overseeing and regulating the securities market in India. It was established in 1992 as an independent statutory body. The main functions of SEBI are as follows:

1. Regulation and Oversight: SEBI's primary function is to regulate and oversee the securities market in India. It aims to ensure fair, transparent, and efficient functioning of the market, protecting the interests of investors, and maintaining the integrity of the securities market.

2. Investor Protection: SEBI works to protect the rights and interests of investors. It formulates regulations and guidelines to enhance investor awareness, promote fair practices, and prevent fraudulent and unfair trade practices. SEBI also educates investors about their rights and responsibilities and provides mechanisms for grievance redressal.

3. Regulation of Intermediaries: SEBI regulates various intermediaries in the securities market, including stockbrokers, merchant bankers, portfolio managers, depository participants, credit rating agencies, and mutual funds. It establishes eligibility criteria, registration requirements, and codes of conduct for these intermediaries to ensure their compliance with regulatory standards.

4. Issuance and Listing of Securities: SEBI regulates the issuance and listing of securities in India. It reviews and approves public offers, rights issues, and other capital-raising activities by companies. SEBI ensures that the disclosure norms and listing requirements are met, enabling investors to make informed investment decisions.

5. Market Surveillance and Enforcement: SEBI maintains surveillance over the securities market to detect and prevent market manipulation, insider trading, and other irregularities. It has the authority to investigate and take enforcement actions against individuals or entities involved in fraudulent or manipulative activities, thereby maintaining market integrity.

6. Research and Development: SEBI conducts research and studies related to the securities market, market trends, and emerging issues. It analyzes market data and trends to develop policies and regulations that promote the development and stability of the securities market.

7. Development of Market Institutions: SEBI plays a crucial role in developing and regulating various market institutions, such as stock exchanges, depositories, and clearinghouses. It formulates rules and regulations to ensure their proper functioning, transparency, and accountability.

8. Policy Formulation: SEBI provides recommendations to the government on policy matters related to the securities market. It collaborates with other regulatory bodies, market participants, and industry stakeholders to develop a conducive regulatory framework for the growth and development of the Indian securities market.

These functions collectively work towards creating a fair, transparent, and investor-friendly securities market in India, promoting capital formation, and fostering investor confidence.