How powerful is SEBI in Indian Stock Market?
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The Powers of SEBI in the Indian Stock Market
Established on April 12 1988 as an executive body, the SEBI was provided with statutory powers on January 30 1992 and it was issued through the SEBI Act, 1992.
The Securities and exchange board of India regulates securities and commodity markets functioning under the control of the Ministry of Finance, Govt of India.
The SEBI is entrusted with three specific powers quasi-legislative, quasi-judicial, and quasi-executive.
SEBI holds the Securities Appellate Tribunal, a three-member tribunal headed by Justice Tarun Agarwala, former chief justice of the Meghalaya High Court.
The second appeal is directed to the Supreme Court.
SEBI plays an active role in making the investors/financial instruments/brokerage firms disclose the essential requirements. It does the best in establishing the International Standards.
Powers Entrusted to SEBI for Proper Functioning:
SEBI is the regulating agency that looks into the activities conducted by various agencies in retrospect to the Stock exchange.
The SEBI has the power to approve the by-laws of the securities exchanges.
The security exchange can amend their by-laws, and seek an inspection of books of accounts, and periodical returns only after obtaining approval from the SEBI.
The SEBI is authorized to inspect the books of accounts of financial intermediaries.
The SEBI can recommend companies list their shares at security exchanges, such as BSE, NSE, etc.
The SEBI scrutinizes the registration of brokers and sub-brokers in relation to the stock exchanges.
SEBI Shares Date Under Close Guard
Academicians, researchers, and analytics do require data that is contained with SEBI.
The data is utilised by various external agencies to suit their purpose and SEBI has framed a policy of data sharing for that matter.
Data Sharing Policy aims at streamlining the prevention of data misuse from unauthorized access, and data protection procedures.
Any agency/individual seeking data must follow the regulatory requirements as per the set norms.
Those must also stand by the assigned ethical usage of the data.
The data seekers should sign an undertaking that defines the non-exposure of confidentiality, and non-disclosure.
The data that is shared with the data seekers shall not be prior to two years old.