Securities and Exchange Board of India (SEBI)

Securities and Exchange Board of India (SEBI) Malpractices of companies, brokers, merchant bankers, and investment consultants to the detriment of the interest of investors compelled the government to constitute the SEBI in April 1988 to regulate and promote the securities market. In 1992 an Act of parliament invested it with statutory powers. The Board can regulate the business in stock exchanges and any other securities market; register and regulate the work of brokers, sub – brokers, transfer agents, bankers to an issue, underwriters, portfolio managers, investment advisers, or any other bodies associated with the securities market in any manner; register and regulate mutual funds; prohibit fraudulent trade practices relating to securities markets; promote investor education; prohibit insider trading; regulate substantial acquisition of shares and takeover of companies; and perform any other function as called upon by the central government. The SEBI has already succeeded in ensuring proper disclosure to investors through prospectus; issuing guidelines for merchant bankers, share transfer agents registrars to an issue, portfolio management service, and for insider trading; in introducing the Stockinvest scheme to eliminate delayed refunds. It has also started registration of intermediaries associated with stock exchanges. See APPENDIX F for complaints format. Complaints from investors against a company should be addressed to the SEBI, Investor Grievance and Guidance Division, Post Bag No. 19972, Nariman Point, Bombay 400 021. Investors are however advised to write to the company first, wait for a month for a satisfactory reply, and then complain to the SEBI. The name of the company should be superscribed on the envelope

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