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Role of SEBI in Indian Stock Market

SEBI India Stock Market

While learning about the stock market does involve imbibing concepts and understanding mechanisms, there is one topic all investors must be familiar with since it involves a key regulator that ensures your money is safe once you start applying your knowledge in the markets- Securities and Exchange Board of India.

Scope of SEBI's Authority


1.SEBI was officially constituted by the government in 1992 to protect investor interests and promote the development of the Indian securities markets. All stock exchanges, like BSE and NSE, as well as market infrastructure institutions, come under SEBI's purview across equities, derivatives, and mutual fund sectors.


2.SEBI's regulatory authority extends beyond mere oversight; it actively fosters market development and innovation while safeguarding the interests of all stakeholders. By setting and enforcing stringent standards, SEBI ensures that market participants adhere to ethical conduct and maintain the highest levels of integrity.


3.Another area of SEBI's goal is to foster financial inclusion by promoting investor education and awareness programs. Through various initiatives, such as seminars, workshops, and online resources, SEBI empowers investors with knowledge about financial products, risk management strategies, and regulatory compliance.



Examples of SEBI Initiatives


  1. Investor grievance redressal systems ensure timely complaint resolutions. Around 95% are typically resolved within mandated time frames.

  2. Strict separation of client and broker funds through T+1 settlement cycles rather than self-regulation on maintaining capital adequacy.

  3. Progressive digital reforms improving access, like eKYC, pledged securities in demat mode, and integrated trading across currency, commodity, and equity segments under a single KYC.


No doubt remains that SEBI plays an indispensable role in the evolution of Indian capital markets. Tighter coordination with global peers leads to ever-increasing synchronisation with international governance frameworks. This showcases India's commitment to mature market ideals that beget more investor trust.


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