Powers of SEBI under the SEBI Act, 1992
- Regulation and Development of Securities Market: SEBI has the power to regulate and develop the securities market in India by promoting fair practices, transparency, and investor protection.
- Registration and Regulation of Market Intermediaries: SEBI is responsible for the registration and regulation of various market intermediaries such as stockbrokers, merchant bankers, and portfolio managers.
- Prohibition of Fraudulent and Unfair Trade Practices: SEBI has the power to prohibit fraudulent and unfair trade practices in the securities market and take action against those engaged in such practices.
- Monitoring Insider Trading: SEBI is responsible for monitoring insider trading and taking appropriate action against those who engage in such activities.
- Investigation and Adjudication of Securities Law Violations: SEBI has the power to investigate and adjudicate securities law violations, and impose penalties or take other appropriate actions against those found guilty.
Functions of SEBI under the SEBI Act, 1992
- Protecting the Interests of Investors: SEBI’s primary function is to protect the interests of investors in the securities market by ensuring transparency, fairness, and equal treatment.
- Promoting Development of Securities Market: SEBI is responsible for promoting the development of the securities market in India by introducing new instruments, increasing liquidity, and encouraging participation by all stakeholders.
- Regulating Market Intermediaries: SEBI regulates market intermediaries such as stockbrokers, merchant bankers, and portfolio managers to ensure their compliance with regulations and protect investors.
- Developing Guidelines and Regulations: SEBI develops guidelines and regulations for the securities market to ensure fair practices and transparency.
- Promoting Investor Education and Training: SEBI promotes investor education and training to increase awareness and understanding of the securities market among investors.
