Roles And Objectives Of SEBI
The main role or objective of SEBI(Securities and Exchange Board of India) is to set the rules and regulations for the markets to function smoothly. SEBI keeps a track of all the entities in the market and makes sure they don’t dupe small investors. It also conducts audits and punishes defrauders.
All the brokers, financiers, finance companies, and all sorts of mediators have to be registered with SEBI to participate in the stock market.
Functions Of SEBI
The first and most important function of SEBI is to protect the investor from all sorts of frauds.
To check for market manipulation.
To ensure no insider trading happens.
To put a stop to misleading and false practices by firms.
To avoid market frauds and if they occur then punish the culprits.
To monitor the mergers and acquisitions of companies.
To take care of the IPO proceedings.
SEBI sees that the brokers and financial institutions are not involved in any sort of malpractices that can hurt the rights and privileges of the investors. From time to time, SEBI has banned firms from the stock market for malpractices.