steps taken by SEBI to strengthen the capital market in india. - MAINS QUESTION - DAILY CURRENT AFFAIR QUESTIONS AND ANSWERS

Saturday, August 22, 2020

steps taken by SEBI to strengthen the capital market in india.

(SEBI-Securities and Exchange Board of India) ie 'Securities and Regulation Boi' was established on 12 April 1988 as a non-constitutional body. After the establishment of SEBI, on 30 January 1992, the Government of India gave SEBI a constitutional status through an ordinance in Parliament. SEBI's headquarter is located in Mumbai and SEBI also has some regional offices which are located in Delhi, Chennai, Kolkata, and Ahmedabad respectively.

Director
The present director of SEBI is mr. Ajay Tyagi
As you may have known, SEBI has a Chairman who is nominated by the Government of India. Their tenure is for 3 years or till the age of 65, whichever is earlier.
The remaining four members are also elected by the Government of India. Of these, 2 members are knowledgeable of the Ministry of Finance and 2 are knowledge of the law. The remaining 1 member is from the RBI (RBI), they are selected from among the RBI officials.

When SEBI was established in 1988, the initial registration of SEBI was 7.5 crores, meaning SEBI was established for 7.5 crores. And this was the capital given by the three major companies. IDBI, ICICI, and IRCI were given Rs 7.5 crore by these three companies to start SEBI at that time.


The purpose of setting up SEBI


Protecting the interests of investors in the stock market: Friends, many investors buy and sell shares of many companies in the stock market, if something wrong happens with such people, investors can file a complaint with SEBI. Sebi's first task is to protect the interests of investors.


Developing Capital Markets: Now you must be thinking what is Capital Market? So the capital market is that which provides loans to companies for a short time or longer. If companies or industrial houses are able to take loans through the capital market, then developing such a market is also a major task of SEBI.


Bringing all the parts of the stock market under the SEBI framework: There are many parts of the stock market. For example, companies, investors, brokers, brokers, investors of companies, bringing all these under SEBI, or (subject to SEBI regulations) is also one of the major functions of SEBI. So that the entire stock market is complete, it can follow the rules made by SEBI and no investor should be cheated.


Prohibiting unethical trading in the stock market: Any trade in the stock market is unethical, whichever company is trading in the wrong way, prohibiting it and buying any company shares in the stock market unethically. Or prohibiting the sale is also one of the functions of SEBI.

Prohibiting Insider Trading: Now you might be wondering what is Insider Trading? So, friends, insider trading means. Intimate trading, sometimes it happens that there are many companies that are issuing their shares, in such cases, who are the executives of those companies. Those who know about the secret business of that company or know some secret information, then those officers earn more profit through that share. Stopping the activities of such people or companies is also a major function of SEBI.

Registering collective gems, including mutual funds: A lot of schemes are launched in the country in which a lot of people together with get money and put it in the stock market. Registering and taking care of such funds is also the duty of SEBI.

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