Definition
SEBI stands for Securities and Exchange Board of India. It is the regulator for the securities market in India, established in 1988. SEBI’s primary responsibility is to protect the interests of investors in securities and to promote and regulate the securities market.
Key Takeaways
- SEBI full form stands for Securities and Exchange Board of India. It is the key regulator for securities and commodity markets in India.
- Established in 1988 and given statutory powers in 1992, SEBI’s primary role is to regulate the markets and protect the interests of the investors. This is achieved by implementing necessary laws and regulations.
- SEBI is responsible for regulating the business in stock exchanges and any other securities markets, registering and regulating the working of stock brokers, sub-brokers, share transfer agents, bankers to an issue, trustees of trust deeds, registrars to an issue, merchant bankers, underwriters, portfolio managers and others who are associated with securities markets in any manner.
Importance
The full form of SEBI is the Securities and Exchange Board of India. Its importance lies in its role as the regulator for the securities market in India.
SEBI was established in 1988 and given statutory powers in 1992 via the SEBI Act. The organization is primarily responsible for protecting the interests of investors in securities, promoting the development of the securities market, and regulating its business.
SEBI plays a critical role in establishing rules and regulations to ensure transparency and safety in the Indian securities market, aiming to prevent market malpractices and fraudulent activities. Its efforts lead to enhanced investor confidence and the healthy, organized growth of the securities market, which directly contributes to the country’s economic development.
Explanation
SEBI, an acronym for the Securities and Exchange Board of India, is the principal regulatory body for securities markets in India. Established by the Government of India in 1988 and given statutory powers through the SEBI Act of 1992, it serves to protect the interests of investors in securities, promote the development of the securities market, and regulate the securities market.
Its main purpose is to foster a stable and efficient market, facilitating wealth creation by enforcing transparent and effective regulations for the securities market. SEBI plays an indispensable role, being the watchdog for the securities market, ensuring that the market operates in a transparent and fair manner.
It regulates the business in stock exchanges and other securities markets, registering and regulating the working of stock brokers, sub-brokers, share transfer agents, merchant bankers, underwriters, etc. Besides, it prohibits fraudulent and unfair trade practices and initiates actions against them.
Its goal is to provide a safe and trustworthy environment for investors and traders, resulting in a mature and vibrant securities market.
Examples of Full Form of SEBI
It seems there might be some confusion in the question as the full form of SEBI refers to the Securities and Exchange Board of India. SEBI is a statutory regulatory body established by the Government of India to regulate the securities market in India and to protect the interests of investors in securities.However, if you are interested in examples of how SEBI functions, here are three real world scenarios:
Regulating Stock Exchanges: SEBI is responsible for regulating stock exchanges in India like the Bombay Stock Exchange (BSE) or the National Stock Exchange (NSE). It ensures there is ethical and transparent dealing in these exchanges. An example is when SEBI discovered unfair practices in NSE’s algorithmic trading, whereby certain brokers were getting preferential access to NSE systems. SEBI took necessary steps to correct this.
Investor Protection: SEBI often steps in to protect the rights of investors. For example, in reference to the Sahara case, where SEBI asked the Sahara Group to refund billions of dollars to investors who purchased bonds issued by the company, as they were found to have violated certain protocols.
IPO Monitoring: SEBI monitors Initial Public Offerings (IPOs) to prevent fraudulent activities and ensure transparency. In the case of the Gitanjali Gems Limited IPO, SEBI found discrepancies and fraudulent activities in the use of IPO proceeds and penalized the involved parties.
FAQs on Full Form of SEBI
What is the full form of SEBI?
The full form of SEBI is ‘Securities and Exchange Board of India’.
When was SEBI established?
SEBI was established in the year 1988.
What is the role of SEBI?
SEBI is the regulator for the securities market in India and it aims to protect the interests of investors in securities, promote the development of the securities market, and regulate the securities market.
Who controls SEBI?
SEBI is controlled by the government of India.
What are the functions performed by SEBI?
SEBI has various functions such as regulatory functions, developmental functions, protective functions, and much more, all of which are aimed towards ensuring a fair and efficient market for securities, protection of investors etc.
Related Entrepreneurship Terms
- Securities and Exchange Board of India
- Stock Exchange
- Regulatory Authority
- Financial Markets
- Investor Protection
