Indian securities exchange regulatory board, SEBI

Securities exchange board of India.
To protect the rights and benefits of companies and investors, Indian government established SEBI. All the exchanges, brokerages work under regulations of sebi and every step by a stock exchange should be SEBI permissioned. Brokerages should be SEBI registered.

The primary function of regulatory authority is to regulate the capital markets.
Some of which includes:
-To control the stock markets from overflow of investments.
-To encourage the public participation in companies and to protect their rights.
-To prevent the malpractices in stock markets by any parties.
-Regulations that ultimately is to reach the capital expenditures and inflows towards the right edge.

Companies came to listing only after the IPO approval by SEBI. SEBI has to right to ban any investor, broker, companies insiders to participate in stock markets. Due to strict privileges by securities board, the complicated stock market deals are ensuing without any frauds.

Some SEBI regulations may be discouraging to foreign investments, but they are of very much essential to regulate markets.

Some examples of sebi regulations are:
The shares that are not in electronic form are not allowed to trade, so every share should be treated only if trader contains Demat account.

Stoppage of trading in a particular stock or whole markets, if they reached a certain maximum level (profits or losses).

Company promoters should inform to stock exchanges prior to any deals in their own company shares, sebi also planning to fix certain mandatory stake that promoter should have in their company.

Sebi may serious, if there is heavy short selling in some counters, especially by foreign institutional investors.

Sebi holds the right to suspend any investors, brokerages from trading in stock markets, if they participated in any mal-practices.


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