What is the role of SEBI in ensuring transparency in the securities market
SEBI has been accused of concealing a 2014 DRI alert on Adani by a petitioner in the Supreme Court. Discuss the role of SEBI in ensuring transparency in the securities market.
SEBI plays a crucial role in ensuring transparency in the securities market. Here are some points highlighting its role:
- Regulatory Authority: SEBI is the regulatory body responsible for overseeing the securities market in India. It formulates rules and regulations to ensure fair practices, market integrity, and investor protection.
- Disclosure and Reporting: SEBI mandates companies to disclose essential information to investors and the public, such as financial statements, annual reports, and material events, ensuring transparency in the market.
- Investor Education: SEBI conducts awareness programs and campaigns to educate investors about their rights, risks, and ways to safeguard their interests. This empowers investors to make informed decisions.
- Market Surveillance: SEBI monitors market activities, including insider trading and market manipulation, through surveillance systems. This helps in detecting any malpractices and maintaining market integrity.
- Enforcement Actions: SEBI has the power to take legal action against entities involved in fraudulent practices or non-compliance with regulations, ensuring accountability and deterring misconduct.
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