Role of SEBI (Security Exchange Board Of India)

SEBI Stands for Security Exchange Board of India. It was established in 1988 by government of India for purpose of regulating security market in India. in year 1992 after passing SEBI ACT 1992 it got statuary power and in year of 1995 through further amendment in act 1992 SEBI got some more additional statuary power. It has a head quarter in Mumbai, Maharashtra, India.

Role OF SEBI

Here we will discuss role of SEBI in four Segments.

1. In Primary Market
2. In Secondary Market
3. In Mutual Fund Market
4. In Foreign Institution investment

In Primary Market

1. Explanation of Entry norms.
2. Defining Entry method.
3. Defining design of prospectus
4. Explaining legal clause of primary Issues/ Legal Issues .

In Secondary Market

1. Infrastructure building
2. Settlement & clearing of transactions.
3. Price stabilization
4. Delisting of shares
5. Working & controlling of market intermediaries and demutualization.
6. Prohibiting insider trading.

In Mutual Fund Market

1. KYC Norms (Know your customer)
2. Disclosure of Entry Norms
3. Controlling Over AMC (Asset Management Company)
4. Price Stabilization under NAV Method (Net Asset Values)
5. Restrictions on Investment by AMC

FOR FIIs (Foreign Institution investment)

1. Eligibility and Entry norms for FIIs.
2. Empowering FMEA
3. Investment of FIIs
4. Monitoring & Controlling FIIs