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Securities Exchange Board of India (SEBI) - SEBI Act


Posted Date: 30-Aug-2010  Last Updated:   Category: Articles    
Author: Member Level: Diamond    Points: 70 (Rs 50)


In our effort to discuss the various financial regulators, we have discussed the role PFRDA, IRDA, RBI. Here we shall discuss in brief the role of Securities and Exchange Board of India (SEBI). SEBI was established in 1988, its main objectives being protecting the rights of small investors and regulating the stock markets in India, National Stock Exchange of India(NSE) and Bomaby Stock Exchange (NSE)



What is Securities Exchange Board of India - SEBI


In our effort to discuss the various financial regulators, we have discussed the role PFRDA, IRDA, RBI. Here we shall discuss in brief the role of Securities and Exchange Board of India (SEBI). SEBI was established in 1988, its main objectives being protecting the rights of small investors and regulating the stock markets in India, National Stock Exchange of India(NSE) and Bombay Stock Exchange (NSE) Consequent on the liberalization of Indian economy and as a foBlow up measure to attract Foreign Direct Investment and investments from Foreign Institutional Investors, it had become necessary to introduce stock market reforms on the lines obtaining in US and other western markets. Towards this end, SEBI approved and initiated reforms beginning from introduction of online trading and depository services. Online trading also brought about more transparency in the trading system. Over a period of few years both the systems have stabilized. With the introduction of demat services, the age of holding share certificate is almost negligible.

SEBI Logo

SEBI 1992 Act and Scam


With the major discovery of securities scam in 1992 and for further tightening of the capital market regulations, several sweeping powers were conferred on SEBI, Several changes were also introduced in the primary market system. This resulted in a great number of retail investors entering the capital market. With the increasing participation of retail investors into the capital market, many promoters of dubious nature raised money without any concrete plans, to vanish after some time.

Irregularities in the capital markets in the form of scams from Harshad Mehta, Sachdeva of MS Shoes, and Ketan Parkh, revealed that there was a system failure and it only strengthened the hands of SEBI. Further to restore the confidence of retail investors and FIIs, several measures were introduced including investor education, corporate governance and enforcement of regulations.

Securities Exchange Board of India Office Address


The Office of Securities and Exchange Board is:
Mittal court 'A' Wing, Ground floor 224, Nariman Point, Mumbai - 400 021

PH: 2850451,52,53,54,55 FAX:204 5633 and its jurisdiction extends to companies having their registered offices in Gujarat, Maharashtra, Madhya Pradesh, Goa, Dadra & Nagar Haveli and Daman and Diu.www.sebi.gov.in/ -


Read related articles: Securities Exchange Board of India    Securities Exchange Board of India Office    

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