elucidate the role of sebi as market regulator

New funds must submit their compliance status to SEBI before being launched.The constituents of the indices must be made public by publishing them on their website.

AMCs must evaluate and ensure compliance to the norms at the end of every calendar quarter.

An individual constituent of the index should have a trading frequency of a minimum of 80%.

The cumulative weight of the top three constituents of the index cannot exceed 65%.No single stock can have more than 35% weight in the index for a sectoral or thematic index the cap is 25% for other indices.A shareholder cannot hold 10% or more of the shareholding directly or indirectly in the asset management company of a mutual fund.(b) An asset management company cannot have representation on a board of any other mutual fund. A sponsor of a mutual fund, an associate or a group company, which includes the asset management company of a fund, through the schemes of the mutual fund in any form cannot hold: (a)10% or more of the shareholding and voting rights in the asset management company or any other mutual fund.Some of the regulations for mutual funds laid down by SEBI are: Despite the powers, the results of SEBI’s functions still have to go through the Securities Appellate Tribunal and the Supreme Court of India.

These have been formulated to keep malpractices at bay. Some of its regulations consist of insider trading regulations, listing obligations, and disclosure requirements. Quasi-Legislative: SEBI reserves the right to frame rules and regulations to protect the interests of the investors. It is also authorised to inspect Books of accounts and other documents if it comes across any violation of the regulations. Quasi-Executive: SEBI is empowered to implement the regulations and judgements made and to take legal action against the violators. This helps to ensure fairness, transparency, and accountability in the securities market. Quasi-Judicial: SEBI has the authority to deliver judgements related to fraud and other unethical practices in terms of the securities market. SEBI takes care of research and development to ensure the securities market is efficient at all times.It monitors substantial acquisitions of shares and take-over of companies.It ensures that investors are educated on the intermediaries of securities markets.fraudulent and unfair trade practices related to the securities market. It regulates the operations of depositories, participants, custodians of securities, foreign portfolio investors, and credit rating agencies.SEBI provides a platform for stockbrokers, sub-brokers, portfolio managers, investment advisers, share transfer agents, bankers, merchant bankers, trustees of trust deeds, registrars, underwriters, and other associated people to register and regulate work.It promotes the development of the securities market and regulates the business.SEBI is primarily set up to protect the interests of investors in the securities market.One member will be appointed from the Reserve Bank of India.įive other members will be nominated by the Union Government of India.Two officers from the Union Finance Ministry will be a part of this structure.The chairman of SEBI is nominated by the Union Government of India.The hierarchical structure of SEBI consists of the following members: Some of these departments are corporation finance, economic and policy analysis, debt and hybrid securities, enforcement, human resources, investment management, commodity derivatives market regulation, legal affairs, and more. There are about 20 departments under SEBI. SEBI has a corporate framework comprising of various departments each managed by a department head. The head office of SEBI is at Bandra Kurla Complex, Mumbai. It monitors and regulates the Indian capital and securities market while ensuring to protect the interests of the investors, formulating regulations and guidelines. SEBI is a statutory regulatory body established on the 12th of April, 1992.

Elucidate the role of sebi as market regulator