Full Form Of SEBI

What is the full form of SEBI?

SEBI stands for Securities and Exchange Board of India, a statutory regulatory authority responsible for overseeing the capital markets of India. It controls and regulates the stock market and safeguards the interests of investors by implementing specific laws and regulations.

Established on 12 April 1992 underneath the 1992 SEBI Act, SEBI has its headquarters in Mumbai, India. It has its regional offices spread across prominent Indian cities like New Delhi, Kolkata, Chennai, and Ahmedabad.

Objectives of SEBI

Following are the main objectives of SEBI:

1. Ensures systematic operation of the Indian capital market and provides a transparent investment climate to investors.
2. Helps avoid capital market fraud in India and encourages the growth of capital market.

SEBI Structure

SEBI follows a hierarchical structure like any other business organization. Every department of SEBI is led by its respective supervisor. Following are some departments of SEBI:

1. Information Technology
2. Office of International Affairs
3. National Institute of Securities Market
4. Foreign Portfolio Investors and Custodians
5. Human Resources Department
6. Commodity and Derivative Market Regulation Department

SEBI members

1. The Union Government of India is responsible for hiring the chairman and five members that comprise the board of directors.
2. The Indian Union Finance Ministry is responsible for employing two members
3. RBI recruits one member to the SEBI organization.

SEBI Functions

There are three parties productive in the Indian Capital Market whose needs SEBI meets. They are:

1. Secures the Investors’ and Traders’ interests
2. Security Issuers
3. Finance Intermediaries

SEBI Powers

The SEBI Act,1992 states the powers of SEBI. Following are the three powers of SEBI:

1. Quasi-judicial: Passes rulings and instructions
2. Quasi executive: Performs enforcement and investigations
3. Quasi-legislative: Rules of Procedure