The Role of SEBI in Protecting the Interests of Investors and Regulation of Financial Intermediaries A Case Study of Rayalaseema Region, Andhra Pradesh – India

The introduction of economic reforms in India, need arose for the liberalization of Indian Financial System which is broadly based on the recommendations on Narsimhaman Committees. Thus, Capital Market reforms constituted important part of economic reforms. Capital market reforms have their main objectives of achieving efficiency in the allocation of resources by liberalizing the existing stringent controls. SEBI came into existence with the objective of regulating the functioning of both primary and secondary market and of providing Investor Protection and Investor interest and Regulation of Financial Intermediaries in India. The Securities and Exchange Board of India which was set up as an administrative body in April 1988 was given statutory status on 30.1.1992 by promulgation of SEBI Ordinance which has since become an Act of Parliament. The Securities and Exchange Board of India (SEBI) with it’s over two decades of existence has made considerable dent in the Capital market through its various developmental and regulatory measures for investor protection and healthy development and regulation of the capital market as well as the Financial Intermediaries. According to the preamble to the SEBI Act, the objective of setting up SEBI is to protect the interest of investors in securities and to promote the development and to regulate the Security market. SEBI has thus three objectives or duties cast upon it by the Act- • To protect the interests of investors in securities, • To promote the development of securities market, • To regulate the securities market.