Question
What do you mean by the SEBI? Explain its objectives.
Solution
The Securities Exchange Board of India was established in 1992 to protect the interest of investors and to regulate and control the trading of financial securities.
Objectives of SEBI:
- Regulation of stock exchange: It regulates stock exchanges so that efficient services may be provided to all the parties operating there.
- Protection to the Investors: SEBI protects the interest of investors from wrong information given by the company and reducing the risk of delivery and payment etc.
- Checking the Insider Trading: It means the buying and selling of securities by those persons(Directors, Promoters etc) who have some secret information about the company and who wish to take advantages of this secret information. SEBI check insider trading.
