ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Answer: The primary function of the SEBI as a regulator in the Indian financial sector is to ensure that the Indian stock markets operate in a safe and orderly way. India’s Securities and Exchange Board was established to defend the investors’ interests and brokers in the Indian stock market.

Detailed explanation-2: -The Securities and Exchange Board of India (SEBI) is the regulatory authority established under the SEBI Act 1992 and is the principal regulator for Stock Exchanges in India.

Detailed explanation-3: -SEBI regulates how the security markets and stock exchanges function. SEBI regulates how transfer agents, stock brokers and merchant bankers, etc, function. SEBI handles the registration activity of new brokers, financial advisors, etc. SEBI encourages the formation of Self-regulatory Organizations.

Detailed explanation-4: -Capital Market: Capital market is a market for long-term debt and equity shares. In this market, the capital funds comprising of both equity and debt are issued and traded. This also includes private placement sources of debt and equity as well as organized markets like stock exchanges.