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sebi stands for securities and exchange board of india.it is incorporated 1988 april.

the main purpose is the protect interst of investors and to regulate the secondary markets.it is anon statutory body before 1988 after 1991 it is statutory body.to regulate the insider trading.

To protect the interest of investors in securities. To promote the development of securities market. To regulate the securities market.

SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI) The Securities and Exchange Board of India was established on April 12, 1992 in accordance with the provisions of the Securities and Exchange Board of India Act, 1992. The SEBI is the regulatory authority established under Section 3 of SEBI Act 1992 to protect the interests of the investors in securities and to promote the development of, and to regulate, the securities market and for matters connected therewith and incidental thereto. According to the preamble of SEBI Act 1992, the objectives of SEBI are threefold:

To protect the interest of the investors in securities. To promote the development of securities market in India. . To regulate the securities market. The affairs of SEBI shall be managed by a Board. The Board shall consist of the following members:

1. A Chairman.

2. Two officials of the Central Government from the Ministry of Finance and Ministry of Law, Justice and Company Affairs. 3. One official nominated by the Reserve Bank of India. 4. Two other members nominated by the Central Government. The Chairman and the members should be persons of ability, integrity and standing who have shown capacity in dealing with problems of the securities market. They are required to have good knowledge or experience in the areas of finance, law, economics, accountancy, administration, etc..

FUNCTIONS OF SEBI According to SEBI Act, 1992, the main functions of SEBI are: Regulating the securities market. Recognition and regulation of the Stock Exchanges. Registering and regulating the working of various intermediaries including Merchant Bankers, Registrars, Share Transfer Agents, Stock-brokers, Sub brokers, Debenture Trustees, Bankers to the Issue, Underwriters, Portfolio Managers, etc. Registering and regulating the functioning of Depositories, Custodians and Depository Participants. Registration of Foreign Institutional Investors. Registering and regulating the working of Venture Capital Funds, Mutual Funds and other collective investment schemes including plantation schemes. Promotion and regulation of Self-Regulatory Organizations.

Prohibiting fraudulent and unfair trade practices relating to securities market. Prohibiting insider trading in securities. Regulating substantial acquisition of shares and takeover of companies. Promoting investor education and training of intermediaries. Conducting research relating to securities market.