Financial Regulators in India

Hi Friends, I am back after long and today I will be discussing about various financial regulators in India who are responsible for taking care of the money invested by us in different financial instruments such as stock exchange, Insurance,bank etc. Below is the list of such regulators:

1. Securities and Exchange Board of India.
2. Reserve Bank of India.
3. Ministry of Finance.
4. Ministry of Corporate Affairs.
5. Insurance Regulatory Authority of India.
6. PFRDA.

Securities and Exchange Board of India (SEBI)

SEBI was formed or was enacted in the year 1992 to safeguard the interest of the investors who invest their money in stock exchanges or mainly we can say in the equity market. SEBI also promote the development of securities market. SEBI has its headquarters at Bandra Kurla Complex in Mumbai and has Northern, Easter,Southern and Western Regional offices in New Delhi, Kolkata, Chennai and Ahmedabad respectively.

Functions and Responsibilities of SEBI

SEBI has the responsibility of responding or to keep check on each and every activity that is happening in securities and capital market. SEBI is responsible for the stock or the company for which the stock is going to be listed in the share market. SEBI should respond back to the concern of the investors (if any). It keeps an eye on the intermediaries that are involved in the act of trading such as brokers. In case of fraud related to trading or very high fluctuation in trading market for a particular stock/segment SEBI has the right to investigate the case and if the person/organization is found to be guilty than SEBI has the right to impose a hefty fine or penalty on that person/organization or can barred it from the activity of trading. In order to ensure that day by day SEBI is functioning in very efficient manner it has the right to make any rule and regulation related to securities and capital market without taking permission by any other other government body/agency, this is due to the statutory status provided to it by an amendment passed by Parliament of India in 1995.

Powers of SEBI

SEBI has the following powers given to it so that it can functions efficiently:

1. It has right to approve any law related to stock exchanges.
2. SEBI helps the stock exchanges to pass any amendment to an existing law.
3. It inspect the books of accounts and call for periodical returns from recognized stock exchanges.
4. It also do a time to time inspection of the books of accounts of a financial intermediaries.
5. It gives the right to a certain companies to list their shares in one or more stock exchanges.
6. All the brokers working for securities and capital market needs to be registered with SEBI.

Please wait for next blog for getting info on other regulatory bodies....