Page 5 - Lesson Note 4

1. To regulate stock exchanges and the securities industry to promote their orderly functioning.

2. To protect the rights and interests of investors, particularly individual investors and to guide

and educate them.

3. To prevent trading malpractices and achieve a balance between self regulation by the

securities industry and its statutory regulation.

4. To regulate and develop a code of conduct and fair practices by intermediaries like brokers,
merchant bankers etc., with a view to making them competitive and professional.

Functions of SEBI Keeping in mind the emerging nature of the securities market in India, SEBI

was entrusted with the twin task of both regulation and development of the securities market.

It also has certain protective functions.

Regulatory Functions

1. Registration of brokers and sub brokers and other players in the market.

2. Registration of collective investment schemes and Mutual Funds.

3. Regulation of stock brokers, portfolio exchanges, underwriters and merchant bankers and
the business in stock exchanges and any other securities market.

4. Regulation of takeover bids by companies.

5. Calling for information by undertaking inspection, conducting enquiries and audits of stock

exchanges and intermediaries.

6. Levying fee or other charges for carrying out the purposes of the Act.

7. Performing and exercising such power under Securities Contracts (Regulation) Act 1956, as

may be delegated by the Government of India.

Development Functions

1. Training of intermediaries of the securities market.