Do You Know SEBI?
- SEBI stands for Security Exchange Board of India.
- SEBI has been constituted as a statutory body to oversee, control and regulate the activities of the securities market, intermediaries and stock exchanges.
- Registering and Regulating work of Stockbrokers, Share Transfer Agents, Banker to the issue, Trustees of Trust Deeds, Registrars, Merchant Bankers, Underwriters, Portfolio Managers, Investment Advisers and such intermediaries.
- Regulating the working of mutual funds
- Prohibits insider trading in securities
The SEBI is managed and run by the followings members:-
- The chairman nominated by the union Government of India.
- One member from the Reserve bank of India.
- Two officers from Union finance ministry as members.
- The remaining five members are chosen by the Union Government of India.
Objectives of SEBI:
• To regulate and develop a code of conduct for brokers, Underwriters etc.
• To prevent frauds and malpractices by businesses and firms.
• It protects the rights of investors and ensuring safety to their invested capital.
• The main purpose of SEB is to regulate the stock exchange activities.