Critical Analysis of Securities and Exchange Board of India’S (SEBI) Role in Regulating the Indian Securities Market in Light of Retail Investor’S Protection

Abstract

Investor protection is one of the key elements of a budding securities market. A significant objective of this strategy is to ensure that investors are properly informed about their purchases, transactions, business affairs, and updates. The Securities and Exchange Board of India (SEBI) is responsible for safeguarding the interests of investors in the Indian securities market. The SEBI has put in place measures to safeguard investors from stock market, mutual fund, and other fraud. The Securities and Exchange of India (SEBI), like many other equities market authorities throughout the world, started a number of changes to improve the efficiency and transparency of their markets. The SEBI issue of capital and Disclosure Requirements Regulations were put into effect by the SEBI in September 2009. Prior to the promulgation of the SEBI Disclosure and Investor Protection Guidelines, 1992 was established. The regulations have undergone multiple formal SEBI circular updates and modifications over the past nine years. The Securities and Exchange Board of India was founded as a legally enforceable administrative body on April 12, 1992. While creating laws and regulations, SEBI's main objective is to govern and oversee the Indian commodity and securities markets. SEBI was created to focus on stock market surveillance and enhance openness in the Indian stock market. Investors' interests as well as those of securities issuers and market participants are protected. SEBI has the authority to go through the ledgers of stock exchanges and audit the books of accounts of market intermediaries, such as corporations, banks, and authorized brokers. The main objective of SEBI is to maintain the stock market secure for investors by enforcing rules and regulations. To encourage investors and traders to actively participate in the market is another duty of SEBI. . The Securities Exchange and Board of India (SEBI) provides systematic oversight and control over stock market activities in addition to encouraging investors and traders to actively participate in the securities market. In India, there are more than 26 stock exchanges that are registered with SEBI. The stock market provides a venue where buyers and sellers of shares and mutual funds can transact. Recently, the percentages of investors and traders have increased dramatically compared to the previous few decades. As stock market activities were developed throughout time, security market fraud also happened. Numerous unlawful financial transactions, stock market price manipulation with unauthorized players, and violations of the stock exchange's listing rules can lead to penalties, the cancellation of trading shares, authority, and a delay in the delivery of shares.