The Role of SEBI in Indian Capital Market

Abstract

Generally people make plan some part of their income to invest. They may invest money in bank, shares, debentures and mutual funds or can have insurance policy. Generally, higher risk is associated with investments of stock market. For the protection of such investors a regulatory authority has been established called as SEBI by the government. The paper shows the role of SEBI (Securities and Exchange Board of India) as regulatory body for the protection of investors' money and the various functions performed by the SEBI. The Primary function of Securities and Exchange Board of India under the SEBI Act, 1992 is the protection of the investors' interest and the healthy development of Indian financial markets. It is very difficult task for the regulators to prevent the scams, regulating and monitoring each and every segment of the financial markets. SEBI had issued new guidelines for the protection of the investors through the Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines, 2000.