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Commerce · Class 12 Commerce

Ch 8Securities and Exchange Board of India (SEBI) — Class 12 Commerce, concept-first.

A capital market with growing numbers of investors, intermediaries and listed companies cannot be left to regulate itself — unfair practices such as price rigging, insider trading and delayed allotment of shares had become common in the Indian stock market by the 1980s, and investors had no single, powerful body to tur…

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Key concepts

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Meaning and Establishment of SEBI

SEBI was first set up as a non-statutory body on 12 April 1988 and was given statutory powers through the SEBI Act, 1992, becoming the principal regulator of India's securities market, headquartered in Mumbai, to protect…

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Chapter contents

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Meaning and Establishment of SEBI

A capital market with growing numbers of investors, intermediaries and listed companies cannot be left to regulate itself — unfair practices such as price rigging, insider trading and delayed allotmen…

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Objectives of SEBI

The Preamble to the SEBI Act, 1992 itself states SEBI's purpose: "to protect the interests of investors in securities and to promote the development of, and to regulate, the securities market and for…

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Organisation Structure of SEBI

Section 4 of the SEBI Act, 1992 lays down how the SEBI Board is constituted. It consists of:

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Functions of SEBI

SEBI's functions are conventionally grouped under three heads — protective, regulatory, and developmental.

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Powers of SEBI

To carry out its functions effectively, the SEBI Act, 1992 vests SEBI with powers that combine elements of all three arms of government within its own specialised sphere:

Exercises

Sample & Board Papers

Sample papers and previous-year board questions for this subject.