The Securities and Exchange Board of India (SEBI) is the regulatory authority for the securities market in India. It was established in 1992 with the objective of protecting the interests of investors in securities, promoting the development of the securities market, and regulating its functioning.
SEBI has the authority to:
• Inspect the books of financial intermediaries (like stockbrokers, merchant bankers, mutual funds, etc.)
• Call for periodical returns and other data from market participants to ensure compliance
• Approve the by-laws of stock exchanges to ensure fair and transparent functioning
• Oversee and regulate the process of listing securities and ensure companies comply with disclosure norms
However, SEBI does not regulate banks. The responsibility of regulating banks lies with the Reserve Bank of India (RBI) under the Banking Regulation Act. RBI inspects the books of accounts, manages monetary policy, and ensures financial stability within the banking sector.
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