SEBI - The Regulatory Mechanism in India

SEBI: Meaning and Understanding

In any economy and as such, in the trading domain, the administrative roles played by the government encompass many different segments. Generally, these segments may be labeled as regulatory, promotional, entrepreneurial and planning segments. Out of these segments in the trading domain, the regulatory and governing role is played by SEBI – Securities and Exchange Board of India. As a registered brokerage firm, Tradebulls fully complies with and follows the guidelines as laid down by SEBI. As a governing body, SEBI acts as the regulatory body for the trade of securities and commodities in all the domains of Indian markets. Established in 1988 on the 12th of April and headquartered at Mumbai, SEBI falls under the purview and jurisdiction of the government of India. SEBI is the main governing body for the capital markets across India and has been handed statutory powers through an act of parliament (SEBI Act, 1992).

Functions of SEBI

It is the direct function of SEBI to control and regulate the intercommunication between the various segments of the capital market so that any kind of conflict of interest or monopolization of the financial domains can be avoided. As such SEBI functions as the restrictive body for the resolution of any kind of disputes arising out of any conflicts and commissioning of capital power distribution mechanism in India. This is very crucial and in fact, a pivotal role that requires an administrative structure that represents various sectors of responsibility. This is why the management of SEBI is chosen in a manner that is varied and dynamically represents the core sectors of responsibility. The management of SEBI comprises The Chairman, two senior personnel from the Finance Ministry, one senior personnel from Reserve Bank of India (RBI) and five more members nominated by the government of India.

The whole idea behind setting up of SEBI was to ensure that the financial rights of investors are not encroached upon, besides addressing other factors like guidelines for issuance of securities and governing of market intermediaries. The main purport of the functioning domain of SEBI is that periodic resolutions are passed and wherever there is any requirement, enforcement activities are undertaken to ensure compliance. Moreover, within its powers, SEBI also can order and carry out investigations and can individuals or agencies accountable. The whole set of laws and regulations, by-laws, amendments etc. related to the capital market in India are carried out by SEBI. All the more, SEBI is the body from which all capital brokers have to seek registration through the due process. Tradebulls is one such highly credible, SEBI -registered brokerage firm, with full allegiance to the laws and regulations to protect and develop the financial interests of all concerned entities.

Departments of SEBI

SEBI has an organizational and departmental structure that further passes down the regulations through various bodies. These departments like Corporation Finance Department (CFD), Commodity Derivatives Market Regulation Department (CDMRD), Department of Debt and Hybrid Securities (DDHS) among others are directly under the jurisdictional purview of SEBI and as such, together form the various bodies of SEBI for the overall market regulation mechanism in India. Such a mechanism is required for the efficient working of the capital market in India. Tradebulls is such a platform that abides by SEBI’s guidelines of transparency and accountability to the core.