ISO 9001:2015

SEBI AS A GUARDIAN OF INVESTORS

Binita Siddhivinayak Singh & Dr. Ravi Kant Modi

SEBI serves as the regulatory body of the Indian securities market through its foundation by the Securities and Exchange Board of India Act in 1992 to protect both retail and institutional investors. SEBI functions as the protective body for investors since it has been assigned to preserve market transparency and stop irregular trading activities, and support truthful market operations. The paper investigates SEBI's organizational design together with its legal enforcement abilities during its examination of regulatory processes that protect retail and institutional investors. SEBI effectively protects investors through a comprehensive framework that focuses on implementing disclosure requirements and monitoring financial periodic reports from listed entities while managing brokerages and banking entities and creating investor education and complaint response programs. This analysis includes technical data that represents the number of penalties SEBI issues and the number of cases handled at the Securities Appellate Tribunal (SAT), and the complaints addressed through the SCORES (SEBI Complaints Redress System) platform. In 2023, SEBI resolved more than 50,000 complaints through the SCORES platform, which highlights its operational structure supporting investor complaint resolution. To enhance corporate governance standards, SEBI has put into practice two regulatory steps, including the Prohibition of Insider Trading Regulations, 2015, and regular updates to Listing Obligations and Disclosure Requirements (LODR). Through legal actions against Ponzi schemes along with investor alerts, the regulator efficiently prevents unauthorized investment solicitations. SEBI conducts regional training sessions and launches online educational resources to establish a well-informed investment culture across various regions of India. The proactive approach of SEBI faces continuing obstacles, including slow implementation of rules and conflicted regulations and insufficient awareness about finance among modest investors based in rural areas.This paper shows that SEBI meets its market regulations and investor safeguards objectives, yet further technological development combined with adjustable enforcement methods and rising investor awareness remain vital for becoming a total investor protection agency in India's changing financial system.


DOI:

Article DOI: 10.62823/IJIRA/5.1(II).7329

DOI URL: https://doi.org/10.62823/IJIRA/5.1(II).7329


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