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The full form of SEBI is Securities and Exchange Board of India. SEBI is a statutory body responsible for regulating the Indian capital markets, enforcing laws and safeguarding investor interests.
SEBI was established on April 12, 1992, under the SEBI Act of 1992. Its headquarters are located in Mumbai, India, with regional offices in New Delhi, Kolkata, Chennai, Ahmedabad, and other major cities.
What is SEBI?
SEBI stands for Securities and Exchange Board of India. Established on April 12, 1988, it was granted statutory authority on January 30, 1992. SEBI is responsible for regulating and overseeing the country’s capital markets, including securities and commodities. Owned by the Government of India, SEBI aims to protect investor interests, regulate the capital market, and ensure transparency. It mandates disclosure of information and enforces guidelines and regulations to safeguard investors’ rights.
SEBI Full Form History
Before the establishment of SEBI, the securities market was governed by a mix of inconsistent and ineffective regulations from various government agencies. In 2014, the Government of India granted SEBI greater regulatory power, enhancing its ability to oversee and protect the capital market. With this expanded authority, SEBI can now conduct search and seizure operations, as well as impose significant penalties for fraudulent activities.
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Objectives of SEBI
The primary objective of SEBI is:
- To ensure the smooth functioning of the Indian capital market and to provide investors with a transparent environment for investment.
- SEBI was established to prevent fraud in the capital market and foster its growth.
SEBI Structure
SEBI follows a hierarchical structure similar to that of any business organization, with various departments headed by their respective supervisors. Here is a list of some of SEBI’s key departments:
- National Institute of Securities Market
- Foreign Portfolio Investors and Custodians
- Information Technology
- Office of International Affairs
- Human Resources Department
- Foreign Portfolio Investors and Custodians
- Commodity and Derivative Market Regulation Department
Functions of SEBI
Here are the key functions of SEBI:
- Protecting Investors’ Interests: SEBI works to protect the rights and interests of investors in the stock market. It ensures fair practices so that investors are not cheated or misled.
- Regulating the Securities Market: SEBI sets rules and regulations for the smooth functioning of the stock market. It monitors stock exchanges, brokers, and other market players to avoid fraud and manipulation.
- Promoting Fair Trading Practices: SEBI promotes honest and transparent practices in trading. It ensures that companies share truthful information with the public, which helps investors make informed decisions.
- Preventing Malpractices: SEBI has the authority to investigate and take action against unfair practices like insider trading, price rigging, and market manipulation.
- Regulating Mutual Funds and Portfolio Managers: SEBI supervises mutual funds and portfolio managers, making sure they follow rules and operate in a way that benefits investors.
- Promoting Investor Education: SEBI runs awareness programs to educate investors about financial markets, risks, and their rights.
- Facilitating Fundraising by Companies: SEBI ensures companies raise money through public offerings like IPOs in a fair and transparent manner by approving their proposals and checking disclosures.
- Regulating Credit Rating Agencies: SEBI oversees the functioning of credit rating agencies to maintain fairness in how companies are rated.
Power of SEBI
SEBI holds three main types of powers:
a) Quasi-Judicial Power
SEBI has the power to pass judgments on cases involving fraud and unfair practices in the securities market. This helps in maintaining fairness, transparency, and accountability in market activities.
b) Quasi-Executive Power
SEBI enforces the rules it creates and takes action against those who break them. It can investigate, examine books of accounts, and take legal action if any violations are found.
c) Quasi-Legislative Power
SEBI also has the authority to make regulations and guidelines to protect investors’ interests and prevent any malpractice in the capital markets.
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FAQs on SEBI Full Form
What is the role of SEBI?
SEBI (Securities and Exchange Board of India) regulates and monitors the securities market in India. Its main role is to protect investors, ensure fair trading, and promote a transparent financial market.
What is SEBI and its functions?
SEBI is a government regulatory body established to oversee the capital markets in India. Its key functions include regulating stock exchanges, protecting investors, preventing market fraud, and supervising mutual funds and other market participants.
When was SEBI established?
SEBI was officially established on 12th April 1992 under the SEBI Act, 1992, although it was initially set up in 1988 as a non-statutory body.
Who is the SEBI chairman?
As of July 2025, the current Chairman of SEBI is Madhabi Puri Buch, who became the first woman to head SEBI starting from 2022.
Is SEBI a government or private organisation?
SEBI is a government organisation, operating as a statutory regulatory authority under the Ministry of Finance, Government of India.
