On this page, We are going to learn about the full form of SEBI and the meaning of SEBI, As well as the meaning, definition, and acronym for SEBI in different categories. So you should read this post till the end.
The Full Form of SEBI – Securities and Exchange Board of India
SEBI Stands for Securities and Exchange Board of India. SEBI is a statutory body that regulates the functioning of the Indian capital market. It controls the trading of shares and mutual funds in the stock market.
The main reason behind establishing it is to protect the stock market and protect the interest of the investors. SEBI provides help to traders and investors against any kind of fraud and scams. And to develop the Indian capital markets by implementing various rules and regulations from time to time.
- Before the formation of SEBI, the Indian capital market was governed by the regulatory authority of the Controller of Capital Issues. It was empowered under the Capital Issues (Control) Act, of 1947.
- SEBI was established on 12 April 1988 and was given statutory recognition on 30 January 1992 by the Government of India under the SEBI Act 1992 through an ordinance.
- SEBI is headquartered in Bandra Kurla Complex, Mumbai. and its Regional Offices are Northern, Eastern, Southern, and Western Regional Offices in New Delhi, Kolkata, Chennai, and Ahmedabad.
Functions and Power of Sebi
As per SEBI Act 1992, it has the power to control the regulation of the stock exchange and other securities markets. It also controls and audits the performance of stockbrokers, sub-brokers, registrars, trustees, issuers from bankers, portfolio managers, and other intermediaries.
Development Functions of SEBI
Bringing growth and development in the capital market is the main function of SEBI, some of its main points are as follows –
- Training of Brokers.
- Educating the investor about investing.
- To conduct research and publish useful information for stock market participants and all.
- Promote fair transactions.
- To encourage self-regulatory organizations.
- Buying and selling mutual funds through a broker or directly.
- Promoting fair transactions.
- Taking cognizance of fraud and taking appropriate action.
Regulatory Functions of SEBI
SEBI protects the interests of investors and other financial participants. Some important points are as follows –
- It provides guidelines for the proper functioning of financial intermediaries and corporates and formulates the code of conduct. To investigate and audit the transactions of securities.
- Provides a platform where Portfolio Managers, Bankers, Stockbrokers, Investment Advisors, Merchant Bankers, Registrars, Share Transfer Agents, and others can transact together.
- Regulating substantial acquisitions in a given time period of stock and takeover companies.
Protective Function of SEBI
The purpose of this work is mainly to keep track of the functioning of the business in the financial markets. Some important parts of it are as follows –
- Checks for manipulation of share prices.
- Prevents insider trading.
- Promotes fair share trading.
- Makes investors aware.
- Prevents fraud and unfair trade of securities.