The Securities and Exchange Board of India is the standard crucial regulatory body of the securities market in the Republic of India comparable to the Securities and Exchange Commission in the U.S. Its stated goal is “to protect the interests of capitalists in securities as well as to promote the growth of and to control the securities market and for matters connected therewith or incidental thereto.”
The Securities and Exchange Board of India developed as a non-statutory regulatory body in the year 1988, but it was not provided autonomous, legal powers until January 30, 1992, when the Parliament of India passed the Securities and Exchange Board of India Act. SEBI replaced the Controller of Capital Issues, which hitherto had controlled the securities market in India, based on the Capital Issues (Control) Act of 1947, among the initial acts passed by the Parliament of India following its liberation from the British Empire.
The SEBI head office lies in the business area at the Bandra Kurla Complex in Mumbai. However, the entity also has Northern, Eastern, Southern and Western local branch workplaces in the cities of New Delhi, Kolkata, Chennai, as well as Ahmedabad, respectively.
According to its charter, it is anticipated to be responsible for three main functions: the issuers of securities, investors, and market intermediaries. The body has somewhat dark powers, as it drafts policies and also laws in its legal capability, passes rulings and even orders in its judicial capacity, and also conducts examinations and enforcement activities in its executive ability.
SEBI is administered by a board of directors, which contains the Chairman, that is chosen by the Parliament of India; two participants from the Union Finance Ministry; one participant from the Reserve Bank of India; and 5 participants that are elected by the Parliament, like the Chairman.
Several doubters criticize SEBI as a regulative body because it is insulated from direct liability to the general public. The only systems to examine its power are a Securities Appellate Tribunal, which includes a committee of three justices, and a direct appeal to the Supreme Court of India.