ROLE OF SEBI IN PROTECTING THE INVESTORS

Abstract

The primary function of SEBI to promote and develop healthy growth in the securities market as well as at the same time also to protect the interest of the investors. In order to protect the investors interest SEBI had taken various initiative by issuing the guidelines in terms of SEBI (disclosure and investor protection) guidelines,2000, by issuing public interest advertisements, by dealing with complaints of investors, by making awareness camp, by doing investor surveys, by regulating the working of intermediaries etc... these are the initiatives which were taken by SEBI to protect the interest of investors but the role of SEBI is not that of hundred percent as that of it would be, though to at large extent SEBI policies covers almost every defect corner. Firstly, SEBI fails to redress of investor grievances in adjudication proceeding as during 2013- 14 penalty amounting to 120 lacs in approximately imposed on twenty companies for default in redressal of investor greivances which is very less. Secondly, SEBI had investigated 1527 cases out of which 1416 investigation is completed but 92 percent cases are relating to market manupulations, price rigging etc...Thirdly the mechanism of disposal of investor complaints s not in time bound manner. Fourthly, decline in invertors populations because of loosing trust due rampant malpractices observed in capital market as per Swaroop committee report. Lastly, large fraud which influences the market are detected by the SEBI but, small fraud which are not in the vision watchdog of SEBI.