Objectives of SEBI:

1. Protection: To protect the rights and interests of the investors and to guide and educate them.

2. Competitive and Professional: To regulate the activities of intermediaries like merchant bankers, brokers etc. and develop a code of conduct to make them competitive and professional.

3. Prevention of Fraud: To prevent frauds and malpractices in securities trading.

4. Balance: To maintain a proper balance between statutory regulation and self regulation.

5. Smooth Functioning: To ensure the efficient and proper functioning of stock exchange and securities market through regulatory measures.

Functions of SEBI

The functions of SEBI may be categorised under 3 broad headings –