State the objects and reasons of SEBI Act, 1992.

1. State the objects and reasons of SEBI Act, 1992. .9lns .
Objects and Reasons
In the approach paper for comprehensive legislation of SEBI, the objects of the legislation are explained as : healthy and orderly development of the security market and adequate investors protection. To this end, it is necessary to promote market which ensures:

1. Fairness. The market must promote integrity in dealings, high standard of conduct
and good business practice. .
2. Efficiency. The market should be professionalised and well informed, offering high standard of service at reasonable cost.
3. Confidence. The market must inspire confidence in both investors and issuers to actively participate in and rely more on the securities market.
4. Flexibility. The market should be resilient, innovative and be continuously responsive to the needs of all market participants.
Statement of objects and reasons as stated in the Securities and Exchange Board of India Bill, 1992 brings out the objects of the legislation in the following words:
"The capital market in India has witnessed tremendous growth in recent times particularly by the increasing partiCipation of the public. Investors' confidence in the capital market can be sustained only by ensuring investors' protection. With this end in view, Government decided to vest SEBI with statutory powers required to deal effectively with all matters relating to the capital market."
Accordingly, the preamble to the SEBI Act, 1992 spells out its objects in the
following words:
"An Act to provide for the establishment of a Board to protect the interest of investors in securities and to promote the development of and to regulate the securities market and for matters connected therewith or incidental thereto."

~ 2. Discuss the constitution and management of Securities and Exchange Board of India.

.9lns .

Establishment of the SEBI (Board)
Securities and Exchange Board of India (SEBI) was established in 1988 through a Government resolution to promote orderly and healthy growth of the securities market and for investors' protection. SEBI has been established on the lines of Securities and Exchange Commission of USA which was set up in terms of the Securities Exchange Act, 1934 with a view to regulate the securities market and check unfair trade practices on the stock exchanges.