Before 1990s there was many malfunctions and irregularities in stock market .SEBI was established because  there was a need to established a central monitoring system.

Introduction to SEBI

SEBI means Securities and Exchange Board of India . It was established in 1992 to regulate all the elements of stock market . to protect the right of investors and regulates the functions of stock market in India. They regulates buying ,selling of stocks and mutual funds . SEBI was established to protect retail investors from any scams or Fruads. The head office of SEBI is in Mumbai and they have regional offices in every part of India .

Functions of SEBI

1. The main function of SEBI to protect the interest of investors in India .
2. They also gives licenses to stock brokers , Portfolio managers ,advisers and bankers.
3. Keep track on Insider trading of shares.
4. To give learning to investors and educate them .
5. They monitors IPO listings and IPO approvals .
6. They conduct enquiries and Introduce new rules in market.

 

Roles of SEBI

There are three types of roles of SEBI

• Protective Role – To protect the interest of retail investors , traders SEBI performs so actions such as, educating . Creating awareness among investors ,  stop insider trading monitors share prices .
• Development Role – Besides regulating stocks SEBI also does research and development. To keep brokers and traders up to date , keep eye on transactions .
• Regulatory Role – This role of SEBI monitors on brokers , sub-brokers , advisors and corporates . They also provide investigation and enquiries , also bring brokers , traders, advisors on same platform.

Conclusion

So SEBI is the main authority body in India . Investing in India has become lot more safer and peoples faith increased in market. After introduction of SEBI number of scams has significantly reduced  and market has become more transparent .