Review:
Securities And Exchange Board Of India (sebi) Act, 1992
overall review score: 4.5
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score is between 0 and 5
The Securities and Exchange Board of India (SEBI) Act, 1992 is the legislative framework that established SEBI as the primary regulatory authority for the securities and capital markets in India. The act provides SEBI with the powers to regulate securities markets, protect investors, and develop the financial market infrastructure. It aims to promote fair, transparent, and efficient functioning of securities markets while safeguarding investor interests.
Key Features
- Establishment of SEBI as a statutory autonomous body
- Regulation and supervision of stock exchanges, brokerages, and listed companies
- Power to draft rules for securities regulations
- Provisions for investigating market abuses and irregularities
- Mechanisms for investor protection and grievance redressal
- Recognition of SEBI's authority to issue binding regulations and penalties
Pros
- Provides a comprehensive framework for regulating securities markets in India
- Enhances transparency and investor confidence
- Empowers SEBI with enforcement capabilities to maintain market integrity
- Facilitates development of a robust financial market infrastructure
Cons
- Complex regulatory environment can sometimes create high compliance costs for market participants
- Enforcement actions may be slow due to procedural complexities
- Evolving nature of markets requires frequent updates to regulations which can lag behind fast-changing financial innovations