The Securities and Exchange Board of India was initially formed as a non-statutory body through a resolution by the Government of India. However, it was later established as a statutory body in 1992.
The Securities and Exchange Board of India Act, 1992 came into effect on January 30, 1992, granting SEBI its legal framework and authority.
Licensing and Regulation
SEBI plays a pivotal role in establishing rules, regulations, guidelines, and codes of conduct for both corporations and financial intermediaries to adhere to. It is responsible for regulating the process of company takeovers, conducting inquiries and audits of stock exchanges, and overseeing the operations of stock brokers and merchant brokers.
Supervision and Compliance
SEBI performs crucial regulatory functions by establishing rules and regulations for both financial intermediaries and corporates, contributing to the efficient management of the market. By setting these standards, SEBI promotes transparency, integrity, and fair practices in the financial industry, ultimately fostering a more robust and well-managed market environment.
Conclusion
The establishment of SEBI was driven by the objective of creating an environment conducive to the mobilisation and allocation of resources. It aims to provide appropriate practices, frameworks, and infrastructure to meet the increasing demand in the financial sector.
Through its regulatory efforts, SEBI strives to foster a dynamic and sustainable financial ecosystem that supports the growth and development of various market participants.
