"Securities and Exchange Board of India" is the full form of SEBI. SEBI is the statutory regulatory body that oversees the Indian capital markets. By introducing specific laws and regulations, it controls and regulates the stock market and protects the interests of investors.
SEBI was established on 12 April 1992 under the SEBI Act, 1992. SEBI is headquartered in Mumbai, India and has regional offices in leading Indian cities of New Delhi, Kolkata, Chennai and Ahmedabad along with other local regional offices.
Objective
The main objective of SEBI is-
- To ensure that the Indian capital market functions in a systematic manner and to provide a transparent investment climate to investors.
- The main reason for the establishment of SEBI was to avoid fraud in the capital market in India and to promote the growth of the capital market.
Structure
SEBI has a hierarchical structure like any business organization and consists of various departments headed by their respective superiors. Below is a list of some of the departments of SEBI:
- Information Technology
- Office of the International Affairs
- Commodity and Derivative Market Regulation Department
- Human Resources Department
- National Institute of the Securities Market
- Foreign Portfolio Investors and Custodians
Members of SEBI
In addition to the heads of departments, SEBI's top management consists of a board of directors hired as follows-
- The Union Government of India employs one Chairman and five members
- The Indian Union Finance Ministry employs two members
- RBI (Reserve Bank of India) is recruiting a single member to SEBI organization.
- SEBI function
- SEBI serves the needs of three productive parties in the Indian capital market. Below are the three participants-
- It secures the interests of investors and traders
- Issuers of securities
- Financial intermediaries
Powers of SEBI
SEBI's power and functions are laid down in the SEBI Act, 1992. SEBI has three powers which are listed below
- Quasi-judicial: Decisions and directions taken.
- Quasi-executive: conducting enforcement and investigations.
- Quasi-legislative: Rules of Procedure.