What is the role of SEBI in the listing process?

The Securities and Exchange Board of India (SEBI) is the regulatory body that ensures a fair, transparent, and efficient listing process for companies in India. Its rules and oversight protect investors and maintain market integrity.

1. Setting Listing Guidelines

SEBI outlines the criteria that companies must meet to list on stock exchanges like NSE and BSE. These guidelines ensure that only credible and compliant companies are allowed to raise public funds.

2. Approving IPO Documentation

SEBI reviews and approves the draft prospectus for an Initial Public Offering (IPO). This document provides investors with detailed information about the company, its business model, financials, and risks.

3. Monitoring Compliance

SEBI ensures that listed companies comply with regulations, including disclosure norms, corporate governance practices, and timely financial reporting. Regular checks help maintain transparency in the market.

4. Protecting Investor Interests

SEBI plays a crucial role in safeguarding investor interests by regulating the listing process. This reduces the risk of fraudulent activities and enhances market trust.

5. Resolving Investor Grievances

SEBI provides a platform to address investor grievances related to the listing process or issues with listed companies. This ensures that investor rights are protected.