Every activity needs supervision and SEBI is the supervisor for all capital market intermediaries. SEBI is committed to not only uphold the market fairness but also protect the interests of the small investors. The Securities and Exchange Board of India (SEBI) is the regulator for the securities market in India as well as for all stock market intermediaries. The investment market needs to be regulated by rules for smooth trading. SEBI ensures the smooth functioning of the stock market and protects the interests of investors, issuers, and intermediaries like stockbrokers.
SEBI helps in the prevention of malpractices and fraudulent means through self-regulation of business and statutory regulations. SEBI frames a code of conduct which has to be followed by bankers, brokers, underwriters, etc. It also approves the by-laws of stock exchanges and amends them, if necessary. SEBI inspects the books of accounts of financial intermediaries and stock exchanges. It checks price rigging and prohibits insider trading. It also educates investors to evaluate and buy profitable securities. Above all, SEBI also ensures that the risk management systems of the broker and the stock exchanges are extremely robust leaving little room for any manipulation.