SEBI’S ROLE IN MAINTAINING MARKET INTEGRITY Market integrity means the stock market works in a fair and honest way , where prices are real (not manipulated), rules are followed, and all investors are treated equally. Ensures fair trading – SEBI makes sure buying and selling of shares happens in a fair way without cheating. Prevents price manipulation – Stops practices like artificial price rise or false demand. Monitors the market – Uses surveillance systems to track unusual or suspicious activities. Enforces transparency – Companies must share correct and timely information with investors. Regulates intermediaries – Brokers, mutual funds, and other market players must follow rules. Builds investor trust – By keeping the market honest and safe, SEBI protects small and big investors
SEBI’S ROLE IN PREVENTING FRAUD: Stops Insider Trading – Prevents company insiders from using secret information to make unfair profits. Checks Market Manipulation – Acts against fake trading, price rigging, and pump-and-dump schemes. Investigates and Punishes – Has powers to impose fines, ban wrongdoers, and even start legal action. Protects Investors – Runs complaint platforms like SCORES and ensures Investor Protection Funds. Encourages Whistleblowers – Rewards people who report fraud or unethical practices. Ensures Fair Practices – Keeps brokers, companies, and other intermediaries under strict rules.