The Securities and Exchange Board of India (SEBI) is the regulator of the securities and commodity market in India. The key function of SEBI is to protect those who have invested in securities and to promote the development of the securities market along with ensuring its regulation.
SEBI focuses on three core groups which form the market:
- Issuers of securities
- Market intermediaries
SEBI performs quasi-legislative, quasi-judicial, and quasi-executive functions. In the legislative domain, it drafts the regulation. On the executive side, it ensures the enforcement of regulations and in its judicial capacity, it gives rulings and orders. While this gives SEBI a lot of power, an appeal has been made to establish higher accountability.
The Board of Securities & Exchange Board of India (SEBI) is comprised of 9 members:
- A Chairman nominated by the Union Government.
- 2 members who are officers from the Union Ministry of Finance.
- 1 member who is from the Reserve Bank of India.
- 3 full-time members, who are nominated by the Government of India.
- 2 part-time members, who are also nominated by the Government of India.