The Securities and Exchange Board of India (SEBI) is an apex body established by the Central Government of India to protect the interests of investors in securities markets and to develop and regulate the Indian securities market. It is the governing body established in April 1992 as an independent and statutory organization in accordance with the provisions of the Securities and Exchange Board of India Act, 1992. The main objective of setting up the organization was to formulate and review policies and regulations related to the securities market and to administer investment laws including those related to capital markets, mutual funds, venture capital, stock exchange and other associated securities services.

SEBI regulates and supervises the securities market, including banks, brokers, financial service companies, custodians, and stock exchanges. It also regulates the activities of primary and secondary marketplace participants and other participants of securities transactions including the SEBI-registered intermediaries, market makers and brokers. Additionally, SEBI is responsible for monitoring the activities and transactions performed in the securities market and ensuring that all transactions follow the applicable regulatory standards.

SEBI plays an active role in ensuring self-regulation of the stock brokers and other related intermediaries. The governing body issues order to prevent malpractices/insider trading and fraudulent and unfair trade activities in the stock market. It also prescribes the norms of Code of Corporate Governance in relation to management, board of directors, and shareholders. SEBI also regularly reviews the performance of the stock exchanges and other market entities.

In order to enhance transparency, SEBI follows the best corporate governance practices, which include adequate disclosure, proper accounting & auditing, informed decision making, and fair shareholding. It has also discharged the supervision and regulation of insolvency proceedings that involve securities markets.

Overall, SEBI plays a crucial role in protecting the interests of investors and promoting the integrity, fairness, and transparency of the securities markets by providing independent oversight and efficient market supervision. Despite the criticism, SEBI has put in place comprehensive and effective regulatory framework, ensuring that the markets remain fair, transparent, orderly and efficient.

In the future, SEBI will be faced with the challenge of keeping pace with the rapidly changing dynamics of the securities markets, which require the regulator to be innovative and proactive in its role. Therefore, it is expected that SEBI will continue to work diligently to protect the interests of the investors while promoting robust development of the securities markets.