1. Framing Rule & Regulations
2. Registration of brokers & sub-brokers.
3. Registration of collective investment schemes & mutual funds.
4. Regulation of stock broker, port folio exchanges, under writers & merchant bankers
5. Regulation of take over bids by companies.
6. Levying fee or other charges as per act.
1. Training of intermediaries
2. Conducing Research & Publishing useful information.
3. Undertaking measures to develop capital market by adopting flexible approach
4. Educating Investors to broaden their understanding
5. Permitting Internet trading through registered stock brokers
1. Prohibiting of fraudulent & unfair trade practices.
2. Check on insider trading.
3. ensure investors protection.
4. Promote fair practices & code of conduct in securities market.
5. Check on price rigging.
6. Check on preferential allotment.
1. Check on Price Rigging: Making manipulations with sole objective of inflating or depressing the market price of securities is called ‘Price Rigging’. Such practises are prohibited by law because they can defraud or cheat investors.
2. Check on Unfair Trade Practices: SEBI does not allow the companies to make misleading statements in prospectus which are likely to induce the sale or purchase of securities by any other person.
3. Check on Insider Trading: SEBI prohibits ‘insider trading’ and imposes penalties for such practices. An insider is any person connected with the company who is having price sensitive information (in respect of securities of the company), which is not available to the general public.
Directors, promoters, etc. are the insiders. When such directors, promoters, etc. of the company use inside information to make individual profits, it is referred to as ‘insider trading’.