Aishwarya Patil, Maharashtra National Law University, Aurangabad
INTRODUCTION
The Securities and Exchange Board of India was founded as a legally enforceable administrative body on April 12, 1992. By creating laws and regulations, SEBI’s main objective is to govern and oversee the Indian commodity and securities markets. The Securities and Exchange Board of India Act, 1992 (the SEBI Act) was updated in 1995, 1999, and 2002 in order to adapt to the evolving needs of the securities market and in reaction to market trends. The Securities and Exchange Board of India’s two main duties under the SEBI Act, 1992, are the protection of investors’ interests and the healthy development of the Indian financial markets.
An investor is a person who invests money in a project or company but does not actively manage or take part in daily activities. They might be a person or a legitimate organisation. He is a person who, in order to make money, invests in securities like shares, mutual funds, debentures, etc.
The phrase “investor protection” refers to a variety of measures that are taken to protect investors from the wrongdoings of companies, merchant bankers, depository participants, and other middlemen. In line with the SEBI Act of 1992’s definition of “investor protection,” this means “safeguarding the interest of the investors in securities and encouraging the growth of and regulating the securities market, as well as for things related therewith or incidental thereto.”
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