Securities and Exchange Board of India (SEBI)

What Is the Securities and Exchange Board of India (SEBI)?

The Securities and Exchange Board of India (SEBI) is the main regulator of securities markets in India. SEBI is the partner of the Securities and Exchange Commission (SEC) in the U.S. Its stated objective is "to safeguard the interests of investors in securities and to advance the development of, and to control the securities market and for issues associated therewith or incidental thereto."

Creation of the SEBI

The Securities and Exchange Board of India was laid out in its current manifestation in April 1992, following the entry of the Securities and Exchange Board of India Act by the country's parliament. It superseded the Controller of Capital Issues, which had regulated the securities markets under the Capital Issues (Control) Act of 1947, spent just months before India acquired independence from the British.

The SEBI headquarters is situated in the business district at the Bandra-Kurla Complex in Mumbai. It likewise has regional offices in the urban communities of New Delhi, Kolkata, Chennai, and Ahmedabad, and in excess of twelve neighborhood offices in urban areas including Bangalore, Jaipur, Guwahati, Patna, Kochi, and Chandigarh.

SEBI's Charter

As per its charter, SEBI is expected to be responsible for three principal gatherings:

• The issuers of securities
• Investors
• Market delegates

The body drafts regulations and statutes in a regulatory capacity, passes decisions and orders in a judicial capacity, and behaviors examinations and imposes punishments in an enforcement capacity.

SEBI is run by a board of directors, including a chair who is chosen by the parliament, two officers from the Ministry of Finance, one member from the Reserve Bank of India, and five members who are likewise chosen by the parliament.

Analysis of SEBI

Pundits say SEBI lacks transparency and is protected from direct public accountability. The main instruments to check its power are a Securities Appellate Tribunal, which comprises of a panel of three appointed authorities, and the Supreme Court of India. The two bodies have incidentally scolded SEBI.

In any case, SEBI has been aggressive on occasion in giving out discipline and in giving strong changes. It likewise settled the Financial Stability Board in 2009, in response to the global financial crisis, giving the board a more extensive command than its ancestor to advance financial stability.

Features

• SEBI has wide-ranging regulatory, insightful, and enforcement powers, including the ability to impose fines on violators.
• The Securities and Exchange Board of India (SEBI) is the leading regulator securities markets in India, comparable to the Securities and Exchange Commission in the U.S.
• Some censure SEBI for that they say is a lack of transparency and direct accountability to the public for an institution with such gigantic powers.