Q.Explain the objectives and functions of SEBI.

SEBI's mandate rests on three stated objectives, which its wide range of functions are grouped to serve.

Objectives of SEBI. Under the SEBI Act, 1992, the Securities and Exchange Board of India's stated objectives are to:

1. Protect the interests of investors in securities;
2. Promote the development of the securities market; and
3. Regulate the securities market, along with matters connected with, or incidental to, these three.

Functions of SEBI, grouped under three heads:

1. Protective functions — directly safeguard investors: prohibiting fraudulent and unfair trade practices and insider trading; regulating substantial acquisition of shares and takeovers to protect minority shareholders; promoting fair conduct and a code of conduct for intermediaries; and running investor-education and grievance-redressal mechanisms.
2. Regulatory functions — ensure orderly market conduct: registering and supervising stockbrokers, sub-brokers, merchant bankers, portfolio managers, credit-rating agencies and other intermediaries; regulating mutual funds and collective investment schemes; overseeing the working of stock exchanges and depositories; framing listing obligations and disclosure requirements; and conducting inspections and audits. …

Listing SEBI's functions without grouping them under the protective/regulatory/developmental heads the syllabus expects, or confusing 'objectives' (the three broad aims stated in the A …