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.