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Exercises · Q2

Q.Explain the objectives of SEBI.

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✓ Free question

The Preamble to the SEBI Act, 1992 states SEBI's purpose as protecting investors and regulating and developing the securities market. In detail:

  1. To protect investors' interests — especially small investors, by ensuring accurate and timely information and preventing fraudulent/unfair practices against them.
  2. To regulate the securities market — by framing rules for stock exchanges, brokers and other intermediaries so the market operates fairly and transparently.
  3. To promote the development of the securities market — by removing structural weaknesses, encouraging healthy competition among intermediaries, and adopting flexible measures that let the market grow and modernise.

These three objectives reinforce one another: a well-regulated, actively developing market is what actually makes investor protection achievable in practice, not merely a stated goal.

✓Final answer

SEBI's objectives are investor protection, regulation of the securities market, and promotion of its development.

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