Investor Protection and Role of Sebi

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Topic- Investor Protection and Role of SEBI RESEARCH SCHOLAR- Anand Singhj Chauhan AKS Management College, Lucknow The decade of the 1980’s witnessed a phenomenal growth and development. For the first time the Indian securities market, demon started its potential not only to mobilize the savings of the house-hold sector but also to allocate it with some degree of efficiency for industrial development. By the end of the decade, the securities market emerged into the main stream of the financial system of the country, signifying one of the major economic processes of the decade of the 1990s. There were notable changes in the capital structure of the companies across industries, new intermediaries and the institutions were established in the…show more content…
Regulations have been notified for the first time for prohibiting Insider trading and marketing at a criminal offence under the SEBI Act. In the primary market, merchant bankers are the key intermediaries in issue management. They have been brought under the regulatory purview and capital adequacy norms, code of conduct, due diligence tests and allocation of responsibilities have been introduced for the merchant bankers to make them accountable. Portfolio managers, registrar to issue and other intermediaries critical in the issue management are also authorized and regulated by SEBI. As a part of liberalization process, the erstwhile requirement of approval of issuers to raise capital from the market through the controller of capital Issues was abolished and access to the market made easier. The pricing of the securities made free from any control. SEBI issued guideline for disclosure and Investor Protection which are issuers have not to conform for raising capital from the market. These guidelines ensure that adequate disclosures are made by the issuers in prospectuses and offer documents so that the investor can make an informed investment decision. The prospectuses and all offer documents are vetted by SEBI before an issue is made. An advertising Code for public and right issue have also been introduced by SEBI to ensure fair and adequate disclosures to
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