The SEBI was established in India in 1992 by passing of the securities and Exchange Board Act. This board was established to protect the interest of investors in securities and promote the development and regulation of securities market. SEBI is headquartered in Mumbai and has northern, Eastern, southern and western regional offices in New Delhi, Kolkata, Chennai and Ahmadabad respectively.
SEBI has to be responsive to the needs of three groups
The Objectives of SEBI are as follows
- To protect the interest of investors
- To ensure the fair practices by the issuer of securities, so that they can raise resources easily.
- To protect the services of intermediaries such as brokers, sub brokers, merchant bankers etc., so that they could become competitive and professional.
The Powers of SEBI to discharge its functions efficiently are as follows
- To approve by-laws of stock exchanges and to require the stock exchange to amend their by-laws.
- Inspect the books of accounts and call for periodical returns from recognized stock exchanges
- Inspect the books of accounts of financial intermediaries.
- Compel certain companies to list their shares in one or more stock exchanges.
- Levy fees and other charges on the intermediaries for performing its functions
- Grant license to any person for the purpose of dealing in certain areas
- Delegate powers exercisable by it
- Prosecute and judge directly the violation of certain provisions of the companies Act.