1. Power relating to stock exchanges &intermediaries
SEBI has wide powers regarding the stock exchange and intermediaries dealing in securities. It can
ask information from the stock exchanges and intermediaries regarding their registration transaction for inspection or scrutiny and other purpose.
ask information from the stock exchanges and intermediaries regarding their registration transaction for inspection or scrutiny and other purpose.
2. Power to impose monetary penalties
SEBI has been empowered to impose monetary penalties on capital market intermediaries and other participants for a range of violations. It can even impose suspension of their registration for a short period.
3. Power to initiate actions in functions assigned
SEBI has a power to initiate action is regard to function assigned . For example ,it can issue guidelines to different intermediaries or can introduce specific rules for the protection of interests of investors.
4. Power to initiate actions in function assigned
SEBI has power to regulation insider trading or can regulate the function of merchant bankers.
5. Powers under Securities Contracts Act
For effective regulation of stock exchange , the Ministry of Finance issued a Notification on 13 September,1994 delegating several of its powers under the securities Contracts Act to SEBI.
SEBI is also empowered by the Finance Ministry to nominate three members on the Governing body of every stock exchange
6. Power to regulate business of stock exchanges
SEBI is also empowered to regulate the business to stock exchanges, intermediaries associated with the securities market as well as mutual funds, fraudulent and unfair trade practices relating to Securities ad regulation of acquisition of shares and takeover of companies.
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