The Securities and Exchange Board of India, commonly referred to as SEBI, is a share market regulator in India. Its objective is to foster growth in the exchanges, preserve the rights of individual investors, and oversee the activities of financial intermediaries and other participants. Primarily SEBI safeguards:
Considering the above, it is essential for SEBI to oversee all entities involved in the market. From brokers to mutual funds and large companies, each will play a role in keeping our share markets balanced.
Any inappropriate activities by any of the parties could have an adverse effect on India’s otherwise smooth-running exchange.
SEBI has laid out a set of rules and regulations which all entities must abide by. This legal framework is available on the SEBI website, under the ‘Legal Framework’ category.
|Entity||What do they do?|
|Credit Rating Agency||They rate the creditworthiness of corporate and governments|
|Debenture Trustees||Act as a trustee to corporate debenture|
|Depositories||Safekeeping, reporting, and settlement of clients’ securities|
|Depository Participant (DP)||Act as an agent to the depositories|
|Foreign Institutional Investors (FII)||Make investments in India|
|Merchant Bankers||Help companies raise money in the primary markets|
Asset Management Companies
|Offer Mutual Fund Schemes|
Portfolio Management System
|Offer PMS schemes|
|Stock Brokers||Act as an intermediary between an investor and the stock exchange|