Scribd
Upload
387 views12 pages

SEBI's Role in Investor Protection

SEBI was formed under the SEBI Act of 1992 with the primary objective of protecting investors in securities markets and promoting the development of those markets. Some of the key ways SEBI protects investors include prohibiting fraudulent and manipulative practices, empowering investigations of potential wrongdoing, establishing disclosure guidelines for companies to provide transparent information to investors, and implementing measures like unique identification numbers for market participants and an electronic filing system to increase transparency and efficiency. SEBI also publishes investor education guides to inform the public of their rights and produces materials on risks to help investors make well-informed decisions.

Uploaded by

Monique Ramirez
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
387 views12 pages

SEBI's Role in Investor Protection

SEBI was formed under the SEBI Act of 1992 with the primary objective of protecting investors in securities markets and promoting the development of those markets. Some of the key ways SEBI protects investors include prohibiting fraudulent and manipulative practices, empowering investigations of potential wrongdoing, establishing disclosure guidelines for companies to provide transparent information to investors, and implementing measures like unique identification numbers for market participants and an electronic filing system to increase transparency and efficiency. SEBI also publishes investor education guides to inform the public of their rights and produces materials on risks to help investors make well-informed decisions.

Uploaded by

Monique Ramirez
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

SEBI :- How it protect the interest of the investors.

INTRODUCTION :
The investors control the management group through their board meeting by professionals With growth in corporate activities, collection of funds towards joint stock company became common. Securities & Exchange Board of India (SEBI) formed under the SEBI Act, 1992 with the prime objective of: 1. Protecting the interests of investors in securities, 2. Promoting the development of, and Regulating, the securities market and for matters connected therewith or incidental thereto.

Investor Interest :
Investors needs to be protected from delays in listing of securities with stock exchange, allotment letters, etc. Investment in corporate securities essentially comes from metropolitan cities, urban and semi-urban centre of India. Information on risk involved and view points on merits and demerits of investment should be disseminated widely and reliably. Information should be available on continuous basis so that investor is able to make disinvestment decisions at a right time.

Regulatory Measures :
Regulatory Measures Provisions have been incorporated in different legislations such as companies ACT, securities contracts(regulation) ACT and various other acts. Guidelines, circulars and press notes issued by Ministry of Finance, Ministry of Company Affairs and SEBI.

Prohibition of SEBI
It is relating to security market have been divided into three part: Deals with preliminary matters. Provides for prohibition of fraudulent to securities markets. Prescribe the powers and procedure into alleged contravention and suspension or cancellation of registration.

Important role of SEBI :


Prohibition of certain dealings in securities. Prohibition of manipulative, fraudulent and unfair trade practices. Power of the board to order investigation. Power of investigating authority. Power of investigating authority to be exercised with prior approval.

SEBI guidelines on disclosures and investor protection


SEBI guidelines on disclosures and investor protection SEBI was brought into existence in 1992 as a statutory body. Guidelines besides providing for procedures for operation of different intermediaries with basic purpose of protecting the interest of investors. SEBI has been emphasizing on the importance of disclosure standards for corporate.

Unique identification number


Unique identification number Specified listed companies and specified investor to make application for allotment of unique identification number. Major highlights of regulation are given below: Unique identification numbers for market participants. Unique identification for specified intermediaries and other entity. Unique identification number for specified listed company. Unique identification numbers for specified investors.

EDIFAR
EDIFAR stands for electronic data information filing and retrieval system. This is an automated system for filing, retrieval and dissemination of time sensitive. Primary objective is to centralize the information . Transparency and efficiency for the benefit of all the stakeholders in security market.

OMBUDSMAN :
Ombudsman in its literal sense is an independent person appointed to hear and to act upon citizens complains about government services. This concepts was invented in Sweden. The purpose of acting as an ombudsman in respect of specific matters in territorial jurisdiction.

SEBI investor education guide :


SEBI investor education guide Among other things SEBI has bought out an information pamphlet caption quick reference guide for investor for benefit of public who holds securities. The pamphlet highlights the following: Right of members: 1. To apply winding up of company. 2. To receive the residual proceeds on winding up. 3. To receive dividends declare in time. 4. To receive other corporate benefit such as rights issued, bonus issued as and when approved.

You might also like