SEBI is the nodal agency which protects the interests of an investor in the India market. Otherwise regulation of the capital markets is primarily the responsibility of the Securities and Exchange Board of India (SEBI), which is located in Bombay. Some of the major functions of SEBI are: • " SEBI is expected to regulate the business in stock exchanges and any other securities markets. • " Registering and regulating the working of collective investment schemes, including mutual funds is a responsibility of SEBI. • " SEBI is responsible for prohibiting fraudulent and unfair trade practices relating to securities markets. • " Prohibiting insider trading in securities, with the imposition of monetary penalties, on erring market intermediaries. • " Regulating substantial acquisition of shares and takeover of companies. • " Calling for information from, carrying out inspection, conducting inquiries and audits of the stock exchanges and intermediaries and self regulatory organizations in the securities market. Keeping this in mind, SEBI has issued a new set of comprehensive guidelines governing issue of shares and other financial instruments, and has laid down detailed norms for stock-brokers and sub-brokers, merchant bankers, portfolio managers and mutual funds. • " To promote investor's education and training of intermediaries of securities markets. • Fraudulent and Unfair Trade Practices
Keeping in mind the role of SEBI as the principal agency looking after the investor's interests , it is vested with powers to take action against the practices relating to securities market manipulation and misleading statements to induce sale/purchase of securities.
Inspection and Enforcement
SEBI acts as a civil court in respect to discovery and production of books, documents, records, accounts, summoning and enforcing attendance of company/person and examining them under oath. SEBI can levy fines for...