Question

What is Securities and Exchange Board of India (SEBI)?

Hint:

SEBI is the watchdog of the Indian securities market and protects investors from unfair practices.

Answer 1

The Securities and Exchange Board of India (SEBI) is the regulatory authority of the securities market in India.
It was established in the year 1992 with the objective of protecting the interests of investors and promoting the development of the capital market.
SEBI regulates the functioning of stock exchanges, brokers, sub-brokers, merchant bankers, mutual funds, and other participants in the securities market.
It ensures that the securities market operates in a fair, transparent, and efficient manner.
One of the major roles of SEBI is to prevent unfair practices such as insider trading, fraud, and price manipulation in the stock market.
It also works to educate investors and create awareness about their rights and responsibilities.
By enforcing rules and regulations, SEBI helps in maintaining confidence among investors and encourages healthy growth of the Indian capital market.
Therefore, SEBI plays a vital role in regulating and developing the securities market in India.