Q.Explain the objectives and functions of SEBI.

SEBI is the statutory regulator of the securities market, set up to protect investors and to develop and regulate the market.

Its objectives are to regulate the exchanges and securities industry, protect and educate investors, prevent malpractices, and regulate a code of conduct …

Objectives of SEBI

1. To regulate stock exchanges and the securities industry to promote orderly functioning.
2. To protect the rights and interests of investors, especially individuals, and to guide and educate them.
3. To prevent trading malpractices and balance self-regulation with statutory regulation.
4. To regulate a code of conduct and fair practices by intermediaries such as brokers and merchant bankers.

Functions of SEBI

Regulatory functions: registration of brokers, sub-brokers, collective investment schemes and mutual funds; regulation of stock brokers, underwriters and merchant bankers; regulation of takeover bids; calling for information and conducting inspections, enquiries and audits; levying fees; and exercising delegated powers under the Securities Contracts (Regulation) Act, 1956. …