QS Study

Purpose and Role of Securities and Exchange Board

The essential reason of SEBI is to create an environment to smooth the progress of proficient mobilization and allotment of resources through the securities markets. It also aims to arouse competition and encourage innovation.

This environment includes rules and regulations, institutions and their interrelationships, instruments, practices, infrastructure and policy framework.

This environment aims at meeting the needs of the three groups which basically constitute the market, viz, the issuers of securities (Companies), the investors and the market intermediaries.

  • To the issuers, it aims to provide a market place in which they can confidently look forward to raising finances they need in an easy, fair and efficient manner.
  • To the investors, it should provide protection of their rights and interests through adequate, accurate and authentic information and disclosure of information on a continuous basis.
  • To the intermediaries, it should offer a competitive, professionalized and expanding market with adequate and efficient infrastructure so that they are able to render better service to the investors and issuers.
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