1. Regulating Capital Market Activities

• SEBI (Securities and Exchange Board of India) regulates fundraising activities of Public Limited Companies that issue securities to the public.
  
• It governs Initial Public Offerings (IPOs), Follow-on Public Offerings (FPOs), rights issues, and bonus issues.
  
• Companies must comply with SEBI’s Issue of Capital and Disclosure Requirements (ICDR) regulations.
  
• Prospectuses must be filed with SEBI for vetting before public circulation.
  
• SEBI ensures that companies do not mislead or defraud investors.
  

2. Ensuring Transparency and Disclosure

• SEBI mandates regular disclosures by listed Public Limited Companies.
  
• These include quarterly financial results, shareholding patterns, related party transactions, and price-sensitive information.
  
• Companies must provide information to the public in a timely and accurate manner.
  
• Disclosures help investors make informed decisions and reduce market speculation.
  
• SEBI penalizes companies for non-compliance with disclosure norms.
  

3. Monitoring Insider Trading and Fraudulent Practices

• SEBI enforces the Prohibition of Insider Trading Regulations to prevent unfair trading based on unpublished price-sensitive information.
  
• Directors, promoters, and connected persons are bound by trading restrictions.
  
• SEBI also investigates and penalizes fraudulent and unfair trade practices under the SEBI (FUTP) Regulations.
  
• Surveillance mechanisms help maintain market integrity and investor trust.
  
• Companies must maintain internal controls to detect and report violations.
  

4. Corporate Governance Oversight

• SEBI’s Listing Obligations and Disclosure Requirements (LODR) regulations set standards for corporate governance.
  
• These include the appointment of independent directors, the formation of audit committees, and risk management policies.
  
• SEBI ensures that shareholders’ rights are protected and that company management is accountable.
  
• It promotes ethical conduct and transparency in board functioning.
  
• Regular compliance filings are required to meet governance standards.
  

5. Investor Protection and Redressal

• SEBI operates platforms like SCORES (SEBI Complaints Redress System) for investor grievance resolution.
  
• Investors can lodge complaints against companies regarding delays, fraud, or non-compliance.
  
• SEBI takes enforcement action, including warnings, penalties, and prosecution.
  
• It educates investors about their rights and responsibilities.
  
• Ensuring a fair, transparent, and efficient securities market is SEBI’s core function.