InvestorQ : What is the role that SEBI performs in Indian capital markets?
Dawn Cherian made post

What is the role that SEBI performs in Indian capital markets?

Answer
user profile image
Juvina Maggie answered.
1 year ago


The Securities and Exchange Board of India (SEBI) is the nodal regulatory agency for the capital markets and all capital market participants and intermediaries are regulated by SEBI. This includes he exchanges, investors, brokers, sub brokers, merchant bankers, portfolio managers, mutual fund etc. SEBI has the twin role of protecting the integrity of the market mechanism and to also ensure that the interests of small investors are protected. The Securities and Exchange Board of India (SEBI) has been working closely with the exchanges to inform investors about their rights in equity markets. When you invest in the equity shares of a company, you become part owner of the company. Your demat credit is evidence that you are part owner of the company. You may actually have a very small proportion of ownership but you still have all the rights as a shareholder under the law. There are some rights that are available to the investor as an individual and some that are available as a group of shareholders. SEBI ensures that your rights as a shareholder and as an investor are fully protected.