Powers Of Sebi

The of import powers of blogspot.com//search?q=role-functions-of-sebi-in-monitoring">SEBI (Securities in addition to Exchange Board of India) are:-

Figure 1. Image or film of SEBI's official logo.

1. Powers relating to stock exchanges & intermediaries

SEBI has broad powers regarding the blogspot.com//search?q=role-functions-of-sebi-in-monitoring">stock exchanges in addition to intermediaries dealing inwards securities. It tin sack enquire data from the stock exchanges in addition to intermediaries regarding their blogspot.com//search?q=role-functions-of-sebi-in-monitoring">business transactions for inspection or scrutiny in addition to other purpose.

2. Power to impose monetary penalties

SEBI has been empowered to impose monetary penalties on blogspot.com//search?q=role-functions-of-sebi-in-monitoring">capital market intermediaries in addition to other participants for a arrive at of violations. It tin sack fifty-fifty impose time out of their registration for a brusk period.

3. Power to initiate actions inwards functions assigned

SEBI has a ability to initiate actions inwards catch to functions assigned. For example, it tin sack number guidelines to dissimilar intermediaries or tin sack innovate specific rules for the protection of interests of investors.

4. Power to regulate insider trading

SEBI has ability to regulate insider trading or tin sack regulate the functions of merchant bankers.

5. Powers nether Securities Contracts Act

For effective regulation of stock exchange, the Ministry of Finance issued a Notification on thirteen September, 1994 delegating several of its powers nether the Securities Contracts (Regulations) Act to SEBI.

SEBI is besides empowered past times the Finance Ministry to nominate 3 members on the Governing Body of every stock exchange.

6. Power to regulate concern of stock exchanges

SEBI is besides empowered to regulate the concern of stock exchanges, intermediaries associated amongst the securities marketplace equally good equally usual funds, fraudulent in addition to unfair merchandise practices relating to securities in addition to regulation of acquisition of shares in addition to takeovers of companies.