Last Updated: Apr 18, 2024 Value Broking 5 Mins 2.2K
features of sebi

The integrity, openness, and fairness of India’s capital markets are crucially protected by the Securities and Exchange Board of India (SEBI). Since its founding in 1988, SEBI has grown into a capable regulatory organization with a broad range of duties. To explain how SEBI contributes to the expansion and stability of India’s financial ecosystem, this article examines the features of SEBI and benefits of SEBI.

What are the Features of SEBI?

Here are the features of SEBI:

Quasi-Judicial Authority

Becoming the biggest judicial institution there, SEBI conducts hearings good enough so as to look into the cases on ethical side of operations or fraud cases, as well as issues the verdicts. This option assures the participants that the exchange of securities will embrace honesty, transparency and reliability in the market. The SEBI increases investor trust and decreases overhaul of the market by bringing the wrongdoers and organizations to justice.

Quasi-Legislative Function

SEBI is empower to come up with relevant rules for capital markets. Owing to its quasi-legislative competence, SEBI is able to expedite the issuing of regulations safeguarding investors’ interests. Moreover, SEBI’s Listing Obligations and Disclosure Requirements (LODR) aim to ensure that the listed companies of the stock exchanges follow the disclosure standards and corporate governance code of conduct. Through the market of safeguards against abuses and unethical commercial practices is reinforced by this unification and simplification of the legal framework.

Quasi-Executive Role

In executing the powers given to it by law SEBI manages itself as an executive authority which rules on the regulations it establishes. They may face legal action for not complying with the SEBI law and all its regulations. Besides this power, SEBI can also inspect company records at any time to identify and correct inconsistencies at the early stage.

What are the Advantages of SEBI?

Following are some SEBI advantages:

Short-Term Likelihood of Increased Returns:

One of the primary advantages of the SEBI supervision is that an individual can invest with reason to take advantage of the situation and make quick money on the stock market. Stocks have the potential to give higher returns at times compared to traditional investment avenues such as fixed deposits & PPF which sometimes cannot beat up inflation. The chances of investors realizing meaningful returns in the near-term can be maximized with appropriate investment portfolio planning and thorough research.

Becoming a Shareholder in Listed Companies:

Whatever stock they invest in, investing in the stock market still allows people to own and share the listed firms. Now they become the voice of the organization in gathering action and benefit everyone when the company succeeds. Shareholders have all the non-monetary advantages such as dividends, voting rights, and they also take part in the company’s expansion.

Unparalleled Liquidity:

Investments in securities of the stock exchange most of the time bring an outstanding level of liquidity, which is unavailable to many other types of financial offers. Alternating with the fluctuating market situation and developing the customer’s desire, investors have a simple task of acquiring or selling securities. Unlike bonds which require considerable coordination to sell in the open market, the stock market is highly liquid and provides individuals who are liquidity conscious with a major instrument when buying and selling stocks​.

Regulatory Protection:

SEBI protects the interest of the investors by its role as a regulator. The regulator monitors market behavior on a constant basis and intervenes to ensure the interests of different participants is protected, be them a small time investor or a big investor. Investors are provided with an environment conducive to fairness, safety, and honest trading by this vigilance. This helps remove insider trading, dishonest tactics and market manipulation. Investors have no fears of doing business with impunity having assurance that they are covered with the proper regulatory and ethical laws that protect them.

Market Integrity and Transparency:

The regulatory measures exercised by SEBI are in place that let the market to be clean and transparent, thus building trust among investors. This therefore promotes a market with sensible decisions. One of the major aims of the legislation is to obstruct illegal influence such as market manipulation and insider trading by enforcing strict laws and regulations, enforcing a standard level of transparency, as well as corporate governance. This contributes to investor confidence, which is then met with trust and acts as the engagement of more participants to the stock market.


As SEBI takes care of the overall development of the financial industry of the country and brings in numerous benefits and qualities, it is dearly called for the existence of SEBI in India. Financial markets to be fair will, in accordance with market transparency and protection of investors’ preparation guidelines, are the actions of three functions, which are the quasi-judicial, quasi-legislative, and quasi-executive agency. The performance of the stock market in relation with the basic ones that promote short-term financial growth, grant shareholder rights, provide liquidity, and oversee the safe working operations of the market demonstrate that it is very important in discovering India’s economic system. According to SEBI’s endeavors to remain reliable and facilitate the development of new generations of investors, India’s capital markets would flourish and become accessible for all.