QS Study

Functions of Securities and Exchange Board

Main functions that performed by Securities and Exchange Board to protect the interest of investor and provide safety of investment. SEB is entrusted with the twin task of both regulation and development of the securities market.

Regulatory Functions

  1. Regulates Capital Market
  2. Registration of collective investment schemes and Mutual Funds.
  3. Checks Trading of securities.
  4. Regulation of Stock Bankers and portfolio exchanges, and merchant bankers.
  5. Prohibition of fraudulent and unfair trade practices.
  6. Checks the malpractices in securities market.
  7. Controlling insider trading and takeover bids and imposing penalties for such practices.
  8. Calling for information by undertaking inspection, conducting enquiries and audits of stock exchanges and intermediaries.
  9. Levying fee or other charges for carrying out the purposes of the Act.
  10. Performing and exercising such power under Securities Contracts (Regulation) Act 1956, as may be delegated by the Government of India.

Development Functions

  1. Investor education
  2. Training of intermediaries
  3. It regulates the stockbrokers and sub-brokers.
  4. Promotion of fair practices and code of conduct of all SRO’s.
  5. Conducting research and publishing information useful to all market participants.
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