Q: What is SEBI? What is its full form?
A: The Securities and Exchange Board of India (SEBI) is the primary regulatory authority of India’s securities market. It was first established in 1988 as a non-statutory body and later empowered as a statutory authority in 1992 through the SEBI Act. SEBI functions to regulate, supervise, and promote fair practices in the securities market, thereby safeguarding the interests of investors and ensuring financial market stability.
SEBI operates as an autonomous regulator under the overall framework of the Government of India, with the Ministry of Finance providing policy oversight. Its creation marked a turning point in India’s financial system, particularly after stock market scams in the late 1980s highlighted the urgent need for a strong regulator.
Full Form of SEBI
The acronym SEBI stands for Securities and Exchange Board of India. Its primary mandate is:
- Protecting investors from fraud and unfair practices.
- Regulating securities markets by framing and enforcing rules for stock exchanges, brokers, and other intermediaries.
- Promoting market development by introducing reforms that enhance liquidity, efficiency, and transparency.
Do you know?
Do you know SEBI was established in 1988 and was given statutory powers through an act of Parliament in 1992?