A stock exchange is an institution which provides a platform for buying and selling of existing securities. SEBI, as a watch dog performs various functions which protects the investors.
(i) Explain the regulatory and protective functions of SEBI.
(ii) Name the values which SEBI strives to fulfill through its functions.
(i) Regulatory and protective functions :
(i) Registration of brokers, sub-brokers and other players in the market.
(ii) Registration of collective investment schemes and mutual funds.
(iii) Regulation of stock brokers, portfolio exchanges, underwriters and merchant bankers and the business in stock exchanges.
(iv) Regulation of takeover bids by companies.
(v) Levying fee or other charges for carrying out the purposes of the Act.
(vi) SEBI conducts inspections, enquiries and audits of stock exchanges.
{vii) Perform and exercise such power under Securities Contracts (Regulation) Act 1956, as may be delegated by the Government of India.
3. Protective Functions
(i) Prohibition of fraudulent and unfair trade practices.
(ii) Controlling insider trading and imposing penalties for such practices.
(iii) Undertaking steps for investor protection.
(iv) Promotion of fair practices and code of conduct in securities market.
(ii) The values which SEBI fulfills are:
(a) Safety.
(b) Transparency.
© Fairness.