What are the requirements for companies to list on the stock exchange?

The Securities and Exchange Board of India (SEBI) plays a crucial role in protecting investors in the Indian stock market. Below are the key ways SEBI helps protect investors:

1. Regulatory Oversight and Market Monitoring

SEBI ensures that all market participants, including companies, brokers, and other intermediaries, comply with established rules and regulations. This helps maintain a fair, transparent, and orderly market.

SEBI monitors stock exchanges to detect and prevent illegal activities such as insider trading, market manipulation, and fraudulent practices, which helps protect investors from unfair activities.

2. Investor Education and Awareness

SEBI conducts various investor education programs to raise awareness about market risks, investment strategies, and best practices. Through campaigns, workshops, and online resources, SEBI helps investors make informed decisions and avoid scams or misleading investment opportunities.

3. Transparency and Disclosure

SEBI mandates that all listed companies disclose accurate and timely financial information to the public. This transparency ensures that investors have access to the necessary data to assess risks associated with investments.

Companies must provide regular updates on their financial performance, operational changes, and potential risks, helping investors make informed decisions.

4. Investor Grievance Redressal Mechanism

SEBI has established a system where investors can file complaints regarding unfair practices, including fraud, misrepresentation, or defaults by market intermediaries. SEBI ensures that these complaints are addressed promptly, offering investors protection.

In cases of broker defaults, the Investor Protection Fund is available to compensate the affected investors.

5. Promoting Fair Market Practices

SEBI ensures that all market participants, including stockbrokers, mutual funds, and others, adhere to ethical practices. It regulates stock exchanges and intermediaries to prevent market manipulation or misleading activities that may harm investors.

6. Prevention of Market Manipulation

SEBI prevents activities such as insider trading, price rigging, and pump-and-dump schemes that distort the true market value of securities and harm investors. Strict guidelines are enforced to ensure that no individual or group takes unfair advantage of inside information for personal gain.