The Securities and Exchange Board of India regulates the securities and investment markets in India. The primary objective of the board is to maintain efficient and stable markets by establishing and enforcing rules and regulations in the marketplace.
The SEBI was created with the purpose of investigating malpractices and protecting investor interests in the Indian marketplace. It was established to satisfy the needs of issuers, investors and financial intermediaries. For issuers, SEBI provides a suitable market place in which they can easily and fairly raise capital. For investors, SEBI provides protection and a stream of accurate information. For financial intermediaries, the organization provides a stable and competitive marketplace.
The SEBI helps develop the Indian securities market by promoting investor interest and establishing rules and regulations for the marketplace. To fulfill these goals, SEBI utilizes a series of independent powers.
The organization routinely evaluates trading of Indian securities, regulates sub-brokers and stockbrokers and checks for malpractices in the general marketplace. Additionally, SEBI enhances investor’s knowledge by promoting and providing education courses, research practices and investigation techniques.
Similar to the Securities and Exchange Commission, or SEC, in the United States, the SEBI is a crucial entity for improving the financial markets in India. By enforcing rules and regulations to promote an orderly and stable marketplace, the SEBI protects and attracts both domestic and foreign investors to Indian markets.