The Securities and Exchange Board of India (SEBI) plays a vital role in regulating and developing the Indian financial markets. Established in 1988, SEBI is the primary regulatory authority for securities markets in India. Its principal objective is to protect investors, maintain market stability, and promote the development of the securities marketThe Primary and Secondary Financial Markets are based on investors. They put their money into the stock market in order to support economic growth and market expansion, which will result in higher profits. The basic goal of investor protection is to ensure that investors are properly informed about their purchases, transactions, and corporate activities. The investors control the degree of activity. The Securities and Exchange Board of India (SEBI) was founded with the primary goal of defending the interests of securities investors. Promoting the growth and regulation of the stock market is one of the SEBI’s goals. Securities and Exchange Board of India (SEBI) has been established with the prime mandate to protect the interest of investors in securities. One of the missions of the SEBI is to promote the development and regulation of the Stock Market. Meaning of an Investor An investor is one, may be an individual or a legal entity who invests capital in the venture or business but does not participate actively in the day to day management/ affairs of the business. An investor is someone who contributes money to a project or business but does not actively manage or participate in its day-to-day operations. He is a person who invests to earn profit from instruments like Shares, Mutual Funds Debentures, etc. The significance of protecting Investors The securities market depends heavily on investors. An investor is someone who invests money in the hope of making a profit. For the financial markets to develop well, there must be strong investor protection. It is crucial to safeguard investors’ interests, and doing so has a big impact on how an economy’s financial system is set up. Investor protection includes a variety of policies put in place to safeguard investors’ interests from fraud in the stock market, mutual funds, and other areas. Meaning of Investor Protection Investor protection is a wide term that defines measures to protect the investors from malpractices of companies, merchant bankers, depository participants and other intermediaries.A sign of assurance is the investor insurance money. Investor protection, to put it simply, means that, up to a certain extent, you will get your money back if the dealer declares bankruptcy or bows to extortion. When opening a trading account or a record with an internet dealer, it is an important factor to take into account. You typically receive financial backing security when you open an exchange account with a brokerage. According to the SEBI Act, 1992 “Investor protection” is ‘protecting the interest of the investors in securities and promoting the development of and to regulate the securities market and for matters connected therewith or incidental thereto.’ What is SEBI and how SEBI Protects Investor Right? On April 12, 1992, the Securities and Exchange Board of India was established as a legally binding administrative organization. The primary goal of SEBI is to manage and control the Indian commodity and securities markets while developing policies and regulations. SEBI’s headquarters are located at Mumbai’s Bandra Kurla Complex. The corporate structure of SEBI consists of various divisions, each of which is headed by an office head. There are more than twenty divisions. These offices include those for company accounts, financial and strategy investigations, obligation and mixture protections, authorization, human resources, executive rumor, product subsidiaries market guidance, legal concerns, etc. The primary purpose of SEBI is to protect the financial backers’ interests in the protections market are as follows: It manages the business while advancing the market for protections. Stockbrokers, sub-dealers, Portfolio managers, speculators, experts in the stock market, brokers, trader financiers, trustees of trust deeds, recorders, guarantors, and other connected people can apply for and manage work through SEBI. It regulates the actions of safes, members, guardians of safeguards, unidentified portfolio financial backers, and FICO rating agencies. It prevents internal trade securities, such as fraudulent and absurd business practices in the insurance industry. It guards against internal exchanges that are fake or unjustified, as determined by the market. It ensures that financial backers are informed about the protection’s markets’ intermediaries. It monitors significant company acquisitions and takeovers. In order to ensure that the protections market is continually competent, SEBI engages in new efforts. A wide range of market participants are covered by SEBI’s regulatory framework, including listed companies, stock exchanges, brokers, and investment advisers. In order to guarantee accountability, fairness, and openness in the securities market, SEBI has adopted a number of regulations. These rules address topics including insider trading, transparency obligations, and market manipulation, among others. To enhance investor protection in India, SEBI has also implemented a number of initiatives. Enhancing disclosure requirements is one of these measures’ most crucial components. Companies must promptly and completely educate investors about their financial performance, corporate governance policies, and other pertinent information. In order to guarantee that they carry out their responsibilities with integrity and professionally, SEBI has also implemented stiffer rules for auditors and credit rating organizations. Along with these steps, SEBI has regulated mutual funds and portfolio managers to guarantee that investors have access to a variety of investment options and that these options are managed by qualified and professional organizations. Additionally, SEBI has launched a number of efforts to enlighten investors of their rights and obligations and to motivate them to make wise investment choices. SEBI’s role in Investor Protection Investing activities become pleasurable if the investor knows How to invest. Where to invest What to invest in Has knowledge about markets There no malpractices And there is redressal for grievances for the malpractices SEBI’s investor protection strategy has four branches. Educating the Investors or Investor Education and Awareness Disclosure based regulatory Regime Systems and practices which make transactions safe. Redressal of Investor Grievances 1. Investor Education and Awareness- To protect the interests of investors
