Role of SEBI in Investor Protection: An Overview

Abstract

The present paper primarily aims to study the role of SEBI in investor protection. Planning of finances is essential for each and every one. Person has to plan that how much he has to spend on current transactions and how much he has to save. Person may invest his money in bank, insurance or by purchasing shares, debentures and mutual funds i.e., stock exchange. But when he invests in stock exchange he may have more risk. So for the protection of such investors the regulatory authority has been established named Securities and Exchange Board of India (SEBI) by the government. The Primary function of Securities and Exchange Board of India under the SEBI Act, 1992 is the protection of the investors’ interest and the healthy development of Indian financial markets. SEBI had issued guidelines for the protection of the investors through the Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines, 2000. These Guidelines have been issued by the Securities and Exchange Board of India under Section 11of the Securities and Exchange Board of India Act, 1992. This paper also explains the function, objective and Investor Protection Measures by SEBI.