Full Form of SEBI

What is the Full Form of SEBI?

Securities and Exchange Board of India is the full name of the organization.

SEBI is the acronym for Securities and Exchange Board of India. SEBI was established as a regulatory authority in India on April 12, 1992.

This regulatory agency oversees both the security and capital markets in India. SEBI also ensures that investors’ interests are protected. This oversight committee safeguards investors by establishing norms and rules.

SEBI’s responsibilities and powers are managed from its headquarters in Mumbai’s Bandra Kurla Complex. It maintains multiple regional offices in India, including Delhi, Kolkata, Chennai, and Ahmedabad, as well as smaller local and regional offices.

SEBI’s Structure

The Securities and Exchange Board of India, like any other business entity or organization, operates on a hierarchical basis. The Securities and Exchange Board of India has various departments, including the following:

  • Custodians and foreign portfolio investors
  • Department of Commodities and Derivative Market Regulation
  • International Affairs Office
  • Information Technology
  • Custodians and foreign portfolio investors
  • Human Resources Department
  • National Securities Market Institute

Members of Securities and Exchange Board of India

SEBI’s management is made up of various members who serve on the Board of Directors, in addition to the heads of departments. The following are the members of the Board of Directors:

  • 5 members and 1 chairperson
  • The Indian Union Finance Ministry employs two members.
  • One SEBI member is employed by the Reserve Bank of India.

Functions of SEBI

According to the SEBI Act of 1992, this regulatory body has a number of responsibilities to prevent infractions and unethical behavior by offenders. The following are examples of such functions:

  • Protect the interests of investors in the securities market.
  • It promotes the development of the securities market.
  • To monitor and register work, provide a secure platform for investment advisers, portfolio managers, trustees of trust deeds, sub-brokers, stockbrokers, share transfer agents, merchant bankers, underwriters, registrars, bankers, and others.
  • Insider trading and other fraudulent practices by violators are prohibited.
  • SEBI monitors R&D to ensure that the securities industry advances.
  • It ensures that securities market investors are well-informed.
  • To combat fraud, it monitors significant stock acquisitions and the takeover of many companies.
  • SEBI oversees international portfolio investors, participants, credit rating agencies, depositories, and securities custodians.

SEBI’s Powers  

The Securities and Exchange Board of India, as previously stated, is both a regulating and monitoring organization. To carry out its duty, it possesses several special abilities.

The following are examples of unique abilities:

  • Quasi Legislative Powers 

As per the quasi-legislative powers of SEBI, it also has the authority to form regulations and guidelines to safeguard the investor’s interest. The major responsibilities of SEBI are listing obligations, insider trading, and setting rules regarding disclosure requirements.  

These guidelines help to avoid securities market malpractice and unethical behavior by violators.

  • Quasi-Judicial Powers 

The regulatory body also has quasi-judicial authority to issue verdicts in cases of unethical activities or fraud in the securities market.

The quasi-judicial powers are effective in preserving a transparent, accountable, and fair environment in the securities markets.

  • Quasi Executive Powers 

In cases of fraud, the Securities and Exchange Board of India has the authority to carry out the regulations and decisions made. The quasi executive powers of SEBI play a crucial role in enforcing correct legal action against persons who engage in unethical behavior and infractions.

SEBI also has the authority to verify accounts and other essential papers under its quasi-executive powers if any breach or unethical activity is discovered.

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