SEBI was established by Government of India on 12 April 1988 as an interim administrative body to promote orderly and healthy growth of securities market and for investor protection. It was given a statutory status on 30 January 1992 through an ordinance which was later replaced by an Act of Parliament known as the SEBI Act, 1992. It seeks to protect the interest of investors in new and second hand securities.
Objectives of SEBI
1. To regulate stock exchange and the securities market to promote their orderly functioning.
2. To protect the rights and interests of investors and to guide & educate them.
3. To prevent trade mal practices such as internal trading.
4. To regulate and develop a code of conduct and fair practices by intermediaries like brokers, merchant bankers etc. Functions of SEBI The SEBI performs three important functions
1. Regulatory functions: These functions are performed by SEBI to regulate the business in stock Exchange.
2. Development functions: These functions are performed by SEBI to promote and develop activities in stock.
3. Protective functions: These functions are performed by SEBI to protect the interest of investors and provide safety on investments.
