A Case Study Of Investors Protection Under SEBI

Shudhansu Shekhar, LL.M., Chanakya National Law University

INTRODUCTION

The most essential responsibility of SEBI is to protect investors. The Securities and Exchange Board of India (SEBI) was established for the protection of investors as well as the healthy development of Indian financial markets. The Securities and Exchange Board of India Act, 1992 (the SEBI Act) was changed several times between 1995 and 2002 to meet the evolving needs of the stock market and to respond to market events. The preamble of the SEBI Act,1992 lists two objectives: the first is to protect the interests of investors in securities, and the second is to promote the growth, regulation, and control of the securities market, as well as topics related to or incidental to it.

The sole of exchange is the investor, as he is the only one whose rights must be respected first. Various legislations, as well as rules and regulations made thereunder, specify the disclosure requirements that must be met by companies, as well as the penalties and remedies for non-compliance. Investor protection refers to preventing corporations from defrauding, deceiving, or putting investors at risk. Investor protection is one of SEBI's main obligations in India.