SEBI and Functions of SEBI | HSC | Class 12 | SP | Business Studies

SEBI stands for Securities and Exchange Board of India.  It was established on 12 April 1992 under the Securities and Exchange Board of India Act. Its head office is located in Mumbai. It acts as a market regulator/watchdog for capital markets in India. Just like the RBI regulates banking sector, SEBI regulates capital markets.

At present, SEBI has offices in Mumbai, Calcutta, New Delhi and Chennai.

SEBI consists of the following members-
a. Chairman
b. Two members from the Ministries of the Central Government. Dealing with Finance and Law
c. Two other members to be appointed by the Central Government.


Following are the functions of SEBI-

1. Regulating the business in stock exchanges and any other securities market in India.

2. Registering and regulating the working of intermediaries such as stockbrokers, sub-brokers, share transfer agents, etc.

3. Prohibiting fraudulent and unfair trade practices in the securities market of India

4. Registering and regulating the working of venture capital funds and collective investment schemes including mutual funds.

5. Investors’ education and training of intermediaries of the securities market.

6. Prohibiting insider trading in securities.

7. Conducting research and carrying out publications.

8. Promoting and regulating Self-regulatory organizations like AMFI (Association of Mutual Funds in India)