SEBI – The Securities and Exchange Board of India.
It may not sound like one of the most interesting topics out there, but we assure you — it is an extremely important one.
Objectives are words, but functions are actions. So, what functions does SEBI actively carry out to meet its objectives?
Protective Functions — The first function of the SEBI is protecting investors in the country. How does SEBI do it? In numerous ways! Right from restricting insider trading, to monitoring rigged pricing, to prohibiting the unfair trade of securities, to helping investors better understand what the liability risks are in their investments — SEBI is the Superman of the Metropolis called the capital market!
Regulatory Functions — This function is all about setting rules. SEBI makes sure that brokers and intermediaries have strict guidelines that they have to mandatorily follow (like Deciml does!), to minimize the risk that fraudulent brokers might pose to investors. It also monitors the workings of mutual funds by keeping an eye on how the business operations of entities that offer mutual fund investments to their customers run. Even stockbrokers, merchant bankers, and other members of the stock exchange are monitored closely by SEBI. But, just having regulations in place is not enough, and to that end, SEBI also conducts routine audits to ensure that its regulations are being adhered to by all those involved in securities transactions.
Development Function — These are the steps that SEBI takes to strengthen security markets. This function can span from employing new technology to training investment brokers to carrying out first-hand market research. It also includes licensing brokers and promoting self-regulatory groups by focusing on fair trade. Without the development function of SEBI, the securities market would remain stagnant and you definitely don’t want that to happen!
In conclusion, SEBI is a one-stop for all things securities-related. It is an organization that was created to demarcate rules, implement investment guidelines, and routinely check on how investments are being carried out by you.
You take a lot of time and effort to build your financial portfolio. SEBI makes sure your efforts are secured and not in vain — and that is something we are totally on board with!