Why was SEBI set-up?

CBSE Class 12 CBSE Class 12 Business Studies
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1

Why was SEBI set-up ? Explain any three objectives of SEBI.
or
What are the objectives of SEBI?

2

The Securities and Exchange Board of India (SEBI) was established by the Government of India on 12th April, 1988 with an objective to protect the interest of investors and to promote the development of regulate the securities market.
The SEBI has many objectives, some of them are described below :
(i) To regulate stock exchange and securities industry to promote their orderly functioning.
(ii) To protect the rights and interests of investors, particularly individual investors and to guide and educate them.
(iii) To prevent trading malpractices and achieve balance between self-regulation by the securities, industry and its statutory regulation.