Monday, October 27, 2008

Securities and Exchange Board of India - SEBI

SEBI is the primary governing/regulatory body for the securities market in India. All transactions in the securities market in india are governed & regulated by SEBI.

The SEBI Governs the following

1. New Issues (Initial Public Offering or IPO)
2. Listing agreement of companies with Stock Exchanges
3. Trading Mechanisms
4. Investor Protection
5. Corporate disclosure by listed companies etc.

The SEBI is headquartered in Mumbai, India and has regional offices in the 4 metros.

The reason for creation of SEBI is to take care of these three group of people.

1. The Issuers of Securities (The companies)
2. The Investors (Us)
3. The Market Intermediaries (The brokers, DEMAT providers etc)

The Following are some of the main functions of SEBI:

1. The business that happens in the Indian stock exchanges and other securities markets in India
2. Registering and monitoring of Intermediaries like Brokers who may participate in the securities market
3. Registering and monitoring the work of depository participants, custodians of securities, FII's etc
4. Prohibiting unfair trade practices and fraudulent practices in the markets
5. Promoting Investor education
6. Training of Intermediaries
7. Prohibiting Insider trading
8. Regulating substantial acquisitions and take overs of companies.

FII's - Foreign Institutional Investors

The SEBI has been vested with a lot of powers and it is the most important governing body that regulates the equity, debt, derivatives segment and also the trading mechanisms in the stock exchanges.

No comments:

Post a Comment

© 2013 by All rights reserved. No part of this blog or its contents may be reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of the Author.


Popular Posts

Important Disclaimer

All the contents of this blog are the Authors personal opinion only and are not endorsed by any Company. This website or Author does not provide stock recommendations. The purpose of this blog is to educate people about the financial industry and to share my opinion about the day to day happenings in the Indian and world economy. Contents described here are not a recommendation to buy or sell any stock or investment product. The Author does not have any vested interest in recommending or reviewing any Investment Product discussed in this Blog. Readers are requested to perform their own analysis and make investment decisions at their own personal judgement and the site or the author cannot be claimed liable for any losses incurred out of the same.