Securities Exchange Board of India

About SEBI

Established in 1988, SEBI or the Securities Exchange Board of India, is the regulatory body for security and commodity markets in India. The main objective of the regulatory authority is to protect investor interests and regulate foreign exchange and securities markets in India.

Role of SEBI

The key responsibility of the regulatory body, as stated in its preamble, is to protect the interests of consumers in securities, regulate the securities market and promote its development. SEBI is mainly responsible for three different market constituents, including issuers of securities, investors and market intermediaries. Besides functioning as a regulatory body, the body is a legislative and executive body.

Powers of SEBI

  • As a legislative body, SEBI drafts laws.
  • The executive powers of the organisation involve conducting investigations and taking enforcement actions.
  • Regulating the functionality of the Indian Capital market.
  • Monitoring and regulating the Indian securities market by protecting investors’ interests.
  • Promoting a safe investment environment for Indian investors by implementing different rules and regulations.
  • SEBI acts as a protector and protects investors’ interests and other financial contributors.

Structure of SEBI

Unlike the regulatory bodies of other countries, SEBI follows a corporate structure, i.e. it has a board of directors, managers, senior managers, department heads and other similar positions. Different departments are responsible for tasks in SEBI like legal, enforcement, market regulation etc. The SEBI board mainly comprises nine different members, which include the following:

  • The Indian government appoints the chairman.
  • The central bank of India, i.e. RBI, appoints one board member.
  • Two board members are from the Ministry of Finance.
  • The central government of India elects five members of the board.