What is the role of SEBI?

ROLE OF SEBI :
ESTABLISHMENT OF SEBI : The Government of India set up the Securities and
Exchange Board of India (SEBI) on 12th April, 1988 as a non-statutory body through a
Resolution for dealing with all matters relating to development and regulation of securities
market and investor protection and to advise the government on all these matters.
SEBI was given statutory status and powers through’ an Ordinance promulgated on 30th
January, 1992. The Ordinance provided for the establishment of a Board to protect the
interests of investors in securities and to promote the development of and to regulate the
securities market. The ordinance was replaced by an Act of Parliament on 4 April, 1992.
The statutory powers and functions of SEBI were strengthened through the promulgation
of the Securities Law (Amendment) Ordinance on 25th January, 1995, which was
subsequently replaced by an Act of Parliament. In terms of this Act, SEBI has been vested
with regulatory powers over corporates in the issuance of capital, the transfer of securities
and other. related matters. In addition, SEBI has also been empowered to impose
monetary penalties on capital market intermediaries and other participants for a range of
violations.
SEBI is, now, given statutory status with wide regulatory powers for the orderly functioning
of Indian capital market. The legal framework has been created for efficient functioning of
SEBI.