Basic Goals of SEBI

Basic Goals of SEBI

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The Preamble of the Securities and Exchange Board of India outlines the fundamental goals of the SEBI. The following is a description of SEBI's function:

1. Protecting Investors' Interests - One of SEBI's main goals is to teach investors how to take the necessary precautions. In addition, SEBI assists investors in making educated investment decisions. The screen-based trading system, the T+2 rolling settlement, and the dematerialization of securities are all actions taken by SEBI. It has also established rules for securities trading, corporate restructuring, and the regulation of intermediaries.

2. Working with Redressal of Financial backer Complaints - SBI has a thorough system for the redressal of the complaints of financial backers against recorded organizations and middle people. SEBI holds meetings and sends reminders to businesses and intermediaries that fail to address investor complaints. In accordance with the law, appropriate enforcement actions are taken. Investor disputes can be resolved through the stock exchange and depositories' extensive arbitration system. If a broker is found to be in default, the investor protection fund helps to compensate investors. Investors receive compensation from the depository for losses caused by its negligence.

3. Regulating the Stock Market - SEBI also wants to control the Indian capital markets. The regulations established within the confines of SEBI are administered by the Department of Economic Affairs' Capital Markets Division. Within the confines of SEBI regulations, it performs the following functions:

Preventatively regulating capital markets

Encouraging the formation of self-regulatory organizations

Regulating the functions of the stock exchange and security markets

Developing regulations to prevent systemic errors

Managing and controlling the complaints division

Managing and controlling the complaints division

4. Developing a Code of Conduct for Mutual Fund Intermediaries - SEBI prioritizes investors' interests and takes measures to protect them. In order to guarantee safe distribution, selling, and advertising practices, SEBI issues Mutual Fund Regulations and guidelines. It likewise commands shared assets with comply to SEBI rules for planning writing connected with any plan. SIDs, addenda, performance reports, fact sheets, SAIs, portfolio disclosures, and brochures all need to be current.