Objectives of SEBI
The various objectives of a Stock Exchange are explained below
1. Regulation of Stock Exchanges
The first objective of SEBI is to regulate stock exchanges so that efficient servicesmay be provided to all the parties operating there.
2. Protection to the Investors
The capital market is meaningless in the absence of the investors. Therefore, it is important to protect the interests of the investors. The protection of the interests of the investors means protecting them from the wrong information given by the companies in their prospectus, reducing the risk of delivery and payment, etc. Hence, the foremost objective of the SEBI is to provide security to the investors.
3. Checking the Insider Trading
Insider trading means the buying and selling of securities by directors Promoters, etc. who have access to some confidential information about the company and who wish to take advantage of this confidential information. This affects the interests of the general investors and is essential to check this tendency. Many steps have been taken to check insider trading through the medium of the SEBI.
4. Control over Brokers
It is important to supervise/check the activities of the brokers and other middlemen in order to control the capital market. To regulate their activities, it was necessary to establish the SEBI.