Q.Explain the objectives and functions of SEBI.

SEBI's objectives are to protect investors, regulate the securities market and promote its orderly development. Its functions are grouped as protective (banning fraud, price-rigging and insider trading, educating investors), regulatory (registering brokers, mutual funds and intermediaries, framing rules, auditing exchanges) and developmental (investor education, promoting fair practices and new instruments). ## About SEBI The Securities and Exchange Board of India was established in 1988 and became a statutory body under the SEBI Act, 1992. It was created because the capital market was growing fast and investors were being cheated through malpractices such as price manipulation, unofficial premiums and delays in delivery of shares. ## Objectives of SEBI 1. Protect the interests of investors so that there is a steady flow of savings into the market. 2. Regulate the securities market and ensure its orderly functioning. 3. Prevent malpractices such as insider trading, price-rigging and fraud. 4. Promote and develop a fair, transparent and efficient securities market. 5. Regulate the working of intermediaries — brokers, merchant bankers, mutual funds — and make them competitive and professional. ## Functions of SEBI ### 1. Protective Functions - Prohibiting fraudulent and unfair trade practices. - Prohibiting insider trading (using unpublished price-sensitive information). - Checking price-rigging that creates artificial price movement. - Educating investors and promoting fair practices and a code of conduct. ### 2. Regulatory Functions - Registering and regulating brokers, sub-brokers, merchant bankers, share transfer agents and other intermediaries. - Registering and regulating mutual funds and collective investment schemes. - Regulating takeovers and acquisitions of companies. - Framing rules and codes of conduct and conducting inquiries and audits of stock exchanges. - Levying fees and penalties. ### 3. Developmental Functions - Training intermediaries of the securities market. - Conducting investor-education and awarenes …