SEBI What is Securities and Exchange Board of India

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Marketopedia / Stock Markets Basic / SEBI What is Securities and Exchange Board of India

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:

  • The stock exchange & stockbrokers conducts their business fairly 
  • Participants don’t get involved in unfair practices 
  • Corporates don’t use the markets to benefit themselves (Satyam Computers) unduly 
  • Small investors’ interests are protected 
  • Large investors with mega cash piles should not manipulate the markets Overall development of markets

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.

EntityWhat do they do?
Credit Rating AgencyThey rate the creditworthiness of corporate and governments
Debenture TrusteesAct as a trustee to corporate debenture
DepositoriesSafekeeping, 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 BankersHelp companies raise money in the primary markets

Asset Management Companies


Offer Mutual Fund Schemes

Portfolio Managers/

Portfolio Management System


Offer PMS schemes
Stock BrokersAct as an intermediary between an investor and the stock exchange