SEBI (Securities and Exchange Board of India)

SEBI, short for the Securities and Exchange Board of India, is the regulatory authority responsible for overseeing the securities market in India. Established in 1988 through the SEBI Act, SEBI plays a pivotal role in promoting fair, transparent, and orderly functioning of the Indian capital markets, safeguarding investor interests, and maintaining market integrity.  

SEBI’s Mandate 

SEBI’s primary mandate is to regulate and supervise the securities market in India, including various segments such as equities, bonds, derivatives, mutual funds, and alternative investment funds (AIFs). The regulatory authority is responsible for:  

  • Ensuring that investors are protected 
  • Promoting investor education and awareness 
  • Fostering the development of a robust capital market ecosystem 

The Functions of SEBI 

SEBI performs a wide range of functions aimed at regulating and overseeing different aspects of the securities market. Key functions of SEBI include: 

  • Regulatory Oversight: Formulating regulations, guidelines, and policies to govern the conduct of market participants, including issuers, intermediaries, and investors, to maintain market integrity and stability. 
  • Registration and Supervision: Registering and regulating various entities operating in the securities market, such as stock exchanges, brokers, depositories, mutual funds, credit rating agencies, and portfolio managers, to ensure compliance with regulatory requirements. 
  • Monitoring and Surveillance: Monitoring market activities, transactions, and price movements to detect potential market abuses, insider trading, manipulation, and fraudulent practices, and taking enforcement actions as necessary to maintain market integrity. 
  • Investor Protection: Implementing measures to safeguard investor interests, enhance transparency, and mitigate risks, including investor education initiatives, grievance mechanisms, and enforcement actions against fraudulent schemes and unfair trade practices. 
  • Market Development: Promoting the development of the securities market by introducing rules and systems to make it easier and quicker for people to buy and sell stocks, making the market more accessible to a wider range of people. 
  • International Cooperation: Collaborating with domestic and international regulatory authorities and industry bodies to exchange information, best practices, and expertise, and aligning regulatory standards with global norms and standards. 

The SEBI Regulatory Framework 

SEBI operates within a comprehensive regulatory framework established by the SEBI Act of 1992. The regulatory framework covers many aspects, including: 

  • Listing and Disclosure Requirements 
  • Market Conduct and Trading Rules 
  • Investor Protection Measures 
  • Corporate Governance Standards 
  • Enforcement Mechanisms 

SEBI plays a crucial role in ensuring the efficient functioning and integrity of the Indian securities market. By regulating market participants, enforcing compliance with regulatory requirements, and promoting investor confidence, SEBI contributes to the stability, resilience, and competitiveness of India’s capital markets, fostering sustainable development and economic growth.  

How Can LeapXpert Help with Communication Compliance?  

Communications compliance is a critical part of SEBI regulations, and LeapXpert is the ideal partner to help you meet all your obligations. The LeapXpert Communications Platform maintains a complete record of all conversations between financial institution employees and clients, ensuring recordkeeping standards are met. Using a mobile-first approach, LeapXpert allows users to conduct text and voice conversations through the client’s preferred channels, all within a secure and unified environment. Businesses can maintain a comprehensive view and full visibility of employee-customer communication without capturing employees’ private and personal messages, ensuring full communication compliance.   

The LeapXpert Communications Platform can also be easily integrated with leading third-party archiving, surveillance, and analytics platforms, making it an essential part of any compliance tech stack. Book now for a demo.