SEBI (Economy)
SEBI (Economy)
Why In News:
The Securities and Exchange Board of India (SEBI) is reviewing sweeping regulatory changes spanning three key market segments- IPOs, stock broking, and mutual funds- aiming to strengthen investor protection and improve market efficiency.
About SEBI
Established: 1988 (non-statutory); granted statutory powers under SEBI Act, 1992.
Headquarters: Mumbai (Bandra-Kurla Complex). Regional offices in New Delhi, Kolkata, Chennai, Ahmedabad.
Functions: (1) Regulate securities market, (2) Protect investor interests, (3) Promote development of securities market.
Appeals: Orders of SEBI can be appealed to the Securities Appellate Tribunal (SAT), and further to the Supreme Court.
Key Facts for Prelims
SEBI's Board: Chairperson + whole-time members + part-time members including representatives from Ministry of Finance and RBI.
T+1 Settlement: India transitioned to same-next-day settlement for equities from Jan 2023- one of the few markets globally to achieve this. Reduces counterparty and systemic risk.
SCORES Portal: SEBI Complaints Redress System- investor grievance platform. SEBI launched SCORES 2.0 in 2024 with auto-escalation features.
IOSCO (International Organization of Securities Commissions): Global body for securities regulators. SEBI is a member and signatory to IOSCO Multilateral MoU (MMoU) for cross-border cooperation.