Primary Functions of SEBI

Primary Functions of SEBI

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The Securities and Exchange Board of India (SEBI), also known as SEBI, is a statutory body in India that oversees the country's securities and commodities markets. The SEBI is owned by the Ministry of Finance. SEBI drafts guidelines as per its administrative limit, and it conducts examination and implementation activity in leader capability. In its capacity as a judicial body, it issues decisions and orders. Investors, market intermediaries, and securities issuers all rely on SEBI to fulfill their requirements. For those who are interested in investing, this apex body is essential. The corporate structure involves in excess of 20 divisions under SEBI that encompass various individuals. Two members of the Union Finance Ministry and one member of the RBI oversee it. The Union Government of India nominates the remaining five members, of which at least three must be full-time members.

The following are SEBI's three primary functions:

1. Quasi-Judicial - SEBI has the authority to void judgments in the event of financial fraud in the security market. This is to guarantee accountability, fairness, and transparency in the securities market.

2. Quasi-legislative - The Securities and Exchange Board of India (SEBI) also possesses the authority to safeguard its investors by enforcing regulations to stop securities market fraud. Insider reading, essential disclosure requirements, and listing obligations are all subjects of these regulations.

3. Quasi-executive - SEBI has the authority to investigate and collect crucial financial records as proof of violations. SEBI has the authority to impose rules, pursue legal action, and render judgment based on the investigation at any time.