What Is Securities and Exchange Board of India (SEBI)?
This is a series of explainers to educate and inform new investors. In association with Dun & Bradstreet India as knowledge partner.
SEBI: Definition, Meaning & Basics
The Securities and Exchange Board of India is the country’s securities market regulator. It was established in 1988 and given statutory powers through the Securities and Exchange Board of India Act, 1992.
The basic functions of SEBI, as laid out in its preamble are, "...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."
SEBI performs various functions, such as granting license and regulating operations of capital market intermediaries such as brokers, sub-brokers, custodians and depository, among others. It is responsible for protecting the interests of investors, and thus conducts investor awareness programs from time to time.
SEBI is also responsible for the development of capital markets in India. It has undertaken several initiatives to introduce new products and practices to help capital markets grow in the country. As the regulator, SEBI has also introduced measures to check insider trading in the Indian stock markets.
SEBI is headed by a chairman and has four wholetime members on its board. It has several departments ranging from the corporation finance department to commodity derivatives market regulation department to division of foreign portfolio investors and custodians.
Visit the Financial Terms section for more.