SEBI regulates the stock market to ensure it operates in a fair, transparent, and efficient way. It sets rules for market participants like brokers, companies, and investors to follow. SEBI works to protect investors’ interests and maintain confidence in the market by preventing fraud, insider trading, and unfair practices.

What Is SEBI?

SEBI (Securities and Exchange Board of India) is the main authority that controls and regulates the stock market in India. It was created to protect investors and promote the development of the securities market. SEBI makes sure that trading and investment happen fairly and openly.

How Does SEBI Protect Investors?

SEBI protects investors by enforcing rules that stop fraud, insider trading, and market manipulation. It ensures companies disclose important information so investors can make informed decisions. SEBI also educates investors about risks and their rights, helping them trade safely.

How Does SEBI Regulate Market Participants?

SEBI sets strict rules for brokers, traders, mutual funds, and companies to follow. It monitors their activities to prevent unfair trading practices. SEBI can punish or suspend those who break rules, helping keep the market safe and trustworthy.

How Does SEBI Promote Transparency?

SEBI requires companies to regularly share financial reports and other important information with investors. This transparency helps investors trust the market and make better decisions. It also makes it harder for anyone to cheat or manipulate prices.

How Does SEBI Help Develop the Stock Market?

SEBI supports the growth of the stock market by encouraging new products, technologies, and investor education. It makes the market more accessible and efficient, which attracts more investors and helps the economy grow.