SEBI Explained | Role of SEBI in Investor Protection | What is SEBI in Hindi | SEBI Objectives

Summary

This video explains the crucial role of SEBI (Securities and Exchange Board of India) in safeguarding investor interests within India's securities market. Established in 1992, SEBI is responsible for regulating securities markets, promoting market development, and ensuring fair practices. The video covers SEBI's key objectives, including investor protection through education, grievance redressal, market surveillance, and the prevention of insider trading. Additionally, it highlights SEBI's role in regulating market intermediaries and corporate governance, ensuring transparency and ethical standards in the financial sector to protect investors and enhance market integrity.

Takeaways

• 😀 SEBI (Securities and Exchange Board of India) was established in 1992 to protect investor interests and regulate the securities market in India.
• 😀 SEBI ensures that investors receive accurate and transparent information about investments and securities.
• 😀 SEBI regulates stock exchanges to ensure fairness, transparency, and efficiency in trading operations.
• 😀 One of SEBI's primary objectives is to promote the development of the securities market through reforms, new products, and innovation.
• 😀 SEBI monitors and regulates market intermediaries like brokers, mutual funds, and financial advisors to ensure they comply with regulatory standards.
• 😀 SEBI promotes investor education and awareness by publishing educational materials and conducting workshops across India.
• 😀 SEBI runs awareness campaigns, such as 'Mutual Fund Sahi Hai', to educate the public about investment opportunities and risks.
• 😀 SEBI has implemented a robust grievance redressal system through SCORES, allowing investors to file complaints and track their resolution online.
• 😀 SEBI plays a vital role in preventing insider trading by enforcing strict regulations and monitoring market activities using advanced technologies.
• 😀 The Investor Protection and Education Fund (IPEF) is managed by SEBI to compensate investors and promote financial literacy and investor protection.

Q & A

What is SEBI, and what is its role in India's security market?

SEBI (Securities and Exchange Board of India) is the regulatory authority for India's securities and commodity markets. Its primary role is to protect the interests of investors, regulate the securities market, and promote its development.

When was SEBI established, and what was its purpose?

SEBI was established on April 12, 1992, with the purpose of regulating and developing the securities market, safeguarding investors' interests, and ensuring transparency and fairness in the market.

What are the main objectives of SEBI?

SEBI's main objectives include investor protection, market regulation, promoting market development, and regulating market intermediaries such as brokers and investment advisors.

What is SEBI's approach to investor protection?

SEBI ensures investor protection by making rules that ensure transparency and accurate information for investors. It also focuses on educating investors, resolving grievances, monitoring market activities, and preventing insider trading.

How does SEBI educate and raise awareness among investors?

SEBI promotes investor education through various initiatives, including publishing educational materials, organizing workshops and seminars, and launching awareness campaigns through print, TV, radio, and social media.

What is the role of SEBI in resolving investor grievances?

SEBI plays a crucial role in resolving investor grievances by providing a web-based platform (SCORES) where investors can lodge complaints, track their status, and receive updates. It also mandates listed companies to establish dedicated grievance cells.

What technologies does SEBI use to monitor the securities market?

SEBI uses advanced surveillance systems, real-time monitoring, data analytics, and market intelligence gathering techniques to detect market irregularities, prevent fraud, and ensure market integrity.

How does SEBI prevent insider trading?

SEBI has created regulations, including the 'Prohibition of Insider Trading Regulations, 2015,' to prevent insider trading. These regulations prohibit trading based on confidential information not available to the public.

What is the Investor Protection and Education Fund (IPEF) in SEBI's framework?

The Investor Protection and Education Fund (IPEF) was established by SEBI to protect investors' interests and promote education. It compensates investors affected by fraud and other irregularities in the market and also funds investor education initiatives.

How does SEBI regulate market intermediaries?

SEBI regulates market intermediaries like stock brokers, mutual fund companies, and portfolio managers by ensuring they meet eligibility criteria, follow financial integrity standards, and comply with SEBI's prescribed regulations. It monitors their activities and takes action in cases of misconduct.