Tactful Management Research Journal

Vol. 2 | Issue. 12 | Sept 2014

ISSN :2319-7943

Impact Factor : 1.5326 (UIF)

ORIGINAL ARTICLE

ROLE OF SEBI IN INVESTORS PROTECTION

IN INDIA
Parmod Kumar
H.O.D., Department of Commerce, Govt. College, Mokhra (Rohtak)
Abstract:
SEBI was provided legal status for investors protection and to develop the
securities markets in India. Various scams like Harshad Mehta security Scam, Floating
Companies Scam, Satyam Scam, Fake Stamp Fraud and DSQ Software Scam reduced
the investors confidence in the securities markets. Also in absence of a strong market
regulator, companies do not bother about the grievances of the investors. To bring the
confidence and trust into the securities market and to protect the investors interest in the
securities market, SEBI issued various guidelines as amended from time to time. Due to
the efforts of SEBI, India is among the safest and cheapest securities market in world.
SEBI has effectively redressed the grievances of the investors and undertakes
investigation against the defaulting companies. SEBI imposed heavy penalties and take
action under the SEBI act for redressal of investors grievances. Instruments like
Stockinvest and ABSA are invented for investors protection. The full disclosure of all
material facts is ensured by SEBI in the prospectus issued to public for raising
capital/debt. But still a lot is required to do and SEBI is equipping itself with the new
weapons to face the new challenges arising in modern era of securities market in India.
KEYWORDS:
SEBI, Investor Protection, Securities Markets, Redressal of Grievances, ABSA, Guidelines.
INTRODUCTION:
In 1988 Securities and Exchange Board of India was established through an executive order of
Government of India. It was left as watch dog to observe the activities but was found ineffective in
regulating and controlling them without adequate legal support. After the Harshad Mehta Security Scam,
Government of India felt the need of a market regulator to protect the interests of investors with legal
backing and to fulfill this gap the SEBI was upgraded on April 12, 1992 as a statutory body. Now SEBI is a
body corporate having a separate legal existence and perpetual succession. The main functions of SEBI are
to protect the interest of investors and development of fair securities markets in India. It regulates the
activities of market intermediaries like merchant bankers, lead managers, brokers, sub brokers and
underwriters etc. The preamble of the SEBI describes the basic functions of SEBI as .. to protect the
interest of investors in securities and to promote the development of, and to regulate the security market and
for matters connected therewith or incidental thereto.
Reasons and objectives for establishment of SEBI
Many malpractices started in the securities market with the growth in the dealing of securities
market e.g. unusual up and down trends in the prices of securities, unofficial premium on new securities,
delay in delivery of share certificates, delay in change of name of shareholders in the members register,
delay and non-payment of dividend declared by companies, violation of listing regulations of stock
Please cite this Article as : Parmod Kumar, ROLE OF SEBI IN INVESTORS PROTECTION IN INDIA : Tactful
Management Research Journal (Sept ; 2014)

ROLE OF SEBI IN INVESTORS PROTECTION IN INDIA

exchanges etc. To regulate all these malpractices and to provide protection to investors from the
malpractices carried out in securities by the intermediaries and companies, SEBI was established as a
regulatory body. It aims to provide the healthy market to raise funds for issuers, protect the investors
interests by providing the correct and timely information to them so that the steady flow of savings remains
into the capital market and to provide fair and healthy competitive market for intermediaries to grow and
participate in market related activities. However, SEBI had some legal limitations but SEBI is working
hard to ensure that the savings of small investors are not compromised following the chit fund scams that
have shaken investors confidence across the country (Sinha, 2013).
REVIEW OF LITERATURE
Many scholars and researcher have done a lot of valuable work near to the title. Some of the
significant references have been taken before this study.
Babu Jawahar, KVSN., Naidu Damodahr, S. (2012) have studied investor protection measures
taken by SEBI. It is pointed out in the study that SEBI vide different guidelines had make it sure that no
stone remains unturned in the path of the mission of protecting the investors. Investors education
campaigns have been yielding positive results to some extents; still more needs to be done. Indian investors
have been steadily fleeing the market, despite the apparent spread of equity cult which calls for immediate
attention of the apex body to frame and effectively implement the measures to protect the interests of
investors and restore their confidence in the stock market.
Sabinathan, S. (2010), has reviewed SEBIs performance in the eighteen years since its
establishment in its current incarnation as an adequately empowered and independent regulator indicates
that there has been all round improvement in the institutional framework in which the securities trade in
India is conducted. In terms of the functioning of the market, SEBI has mandated an enormous increase in
the flow of information at the time of listing, after listing and related to the trade. The long history of the
functioning of the capital market and securities industry in India suggest that voluntary disclosure may not
have become a pervasive trend and that without a regulatory push, there would have been underproduction
of information. The cost of transaction and the risk of settlement have been minimized making Indian
Stock Exchanges one of the safest and lowest cost securities market in the world. The Indian mechanism
for securities issuance is among the more sophisticated in the world with the introduction of the guidelines
for book building of issue. The study suggests that SEBI has achieved considerable progress in terms of
detecting and disposing of instances of non-compliance or infractions.
Giri Savita, R. (2014) in her study found that SEBI surmounted several obstacles on the way to
development of capital market with due care for investors interest and greater transparency in the affairs of
organization and stock exchanges, though not to the extent of hundred percent. SEBI tried hard to make it
sure that no stone remains unturned in the path of the mission of protecting the investors. Investors
education campaigns have been yielding positive results to some extent, still lot more needs to be done.
OBJECTIVES OF THE STUDY: The present study is undertaken to fulfill the following objectives1.To know about the quantum of grievances received and redressed by SEBI during the period of study.
2.To know about the investigations taken up by SEBI.
3.To know about the nature of investigation taken up by SEBI and action taken by SEBI in these cases.
4.To know about the measures taken by SEBI for investors protection.
RESEARCH METHODOLOGY
Research design and Data collection
The present study is descriptive in nature. It aims to describe the role of SEBI in Investor
protection. Since, SEBI was come into force from 1992 and since, than significant time has been elapsed
and the Government of India was very optimistic regarding the outcomes of such a formation with regard to
investors protection and development of stock markets in India. Hence the outcomes in this period are
quite discussable/ debatable. The present study analyses and describes the same, hence, descriptive
study. The study is based on secondary data published by SEBI. The study mainly focuses on guidelines
issued by SEBI for investor protection and grievances received and redressed by SEBI, action taken by
SEBI and nature of investigation.
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ROLE OF SEBI IN INVESTORS PROTECTION IN INDIA

The sources of data are as follows: 1.Statistical Handbook issued by SEBI

2. Annual reports of SEBI for various years
3.Report on Currency and Finance (RBI Publication)
Besides all this, information available in various books, Internet and journals is being made use of.
Period of the Study and Tools of analysis
The present study will analyse the measures taken by SEBI for investor protection from 2000-01
to 2013-14. Also the latest year for which data is available is 2013-14. Hence the same is taken as the
terminal year for the study. Further, Simple statistical tools will be used to simplify the crude data like
percentage, Ratios etc.
DISCUSSION
SEBI has issued guidelines to companies (bringing new issues in the market), mutual funds,
portfolio managers, merchant bankers, underwriters, lead managers, merchant bankers, underwriters and
lead managers etc. to comply with the provisions relating to protection of investors and for the development
of healthy trading practices in the securities markets. These guidelines are for bringing transparency in
their operations and also for avoiding exploitation of investors by one way or the other. SEBI has
introduced a code of advertisement for public issues for ensuring full, fair and truthful disclosures and to
aware the public about the risks involved in investments. The investors can make online complaints to
SEBI if they face any problem related to non-receipt of shares certificates, non transfer of shares, nonreceipts of dividend and other fraudulent practices of the companies. SEBI acts for redressal of grievances
of investors, undertakes investigations and take actions against the defaulting companies.
Table 1. Receipt and Redressal of Investors Grievances
Cumulative
Redressal
Year

Grievances Received
During

Grievances Redressed

Rate (%)

the

Period

Cumulative

During the Period

Cumulative

2000-01

96913

2242224

85583

2114085

94.3

2001-02

81600

2323824

70328

2184413

94.0

2002-03

37434

2361258

38972

2223385

94.2

2003-04

80422

2441680

64262

2287647

93.7

2004-05

53409

2495089

53282

2340929

93.8

2005-06

40485

2535574

37067

2377996

93.8

2006-07

26473

2562047

17899

2395895

93.5

2007-08

54933

2616980

31676

2427571

92.8

2008-09

57580

2674560

75989

2503560

93.6

2009-10

32335

2706895

42742

2546302

94.1

2010-11

56670

2763565

66552

2612854

94.5

2011-12

46548

2810113

53841

2666695

94.9

2012-13

42411

2852524

54852

2721547

95.4

2013-14

33550

2886074

35299

2756846

95.5

Source: - SEBI Annual Reports of various years.

Note: - It excludes complaints against whom regulatory actions are initiated. Further, the above data does
Tactful Management Research Journal | Volume 2 | Issue 12 | Sept 2014

ROLE OF SEBI IN INVESTORS PROTECTION IN INDIA

not include complaints received by SEBI in the matter of Sahara OFCDs.

Table 1 shows that SEBI has received 28,86,074 complaints since inception to till date and out of
these 27,56,846 complaints (95.5 percent) has been resolved. The percentage of grievances settled during
the period of study remains almost 95 percent of total grievances registered. Only 9,147 grievances are
pending as on 31.03.2014 (excluding the complaints against whom regulatory actions are initiated and
complaints received by SEBI in the matter of Sahara OFCDs).
Table 2. Failure to Redress Investor Grievances : Adjudication Proceedings

Year

No. of Companies

Penalty Amount (In Lacs Rs.)

2010-11

42

2011-12

61

2012-13

10

40

2013-14

20

120

Source: - Annual Reports of SEBI

Table 2 shows the adjudication proceeding initiated against those companies who fail to redress the
grievances of the investors. SEBI has imposed penalty on such companies which does not redress the
grievances of the investors. During the year 2013-14, penalty amounting Rs. 120 Lacs in aggregate has
been imposed on 20 companies for default in redressal of investors grievances.
Table 3. Investigations by SEBI

Year

Case taken up for Investigation

Cases Completed

2000-01

68

46

2001-02

111

29

2002-03

125

106

2003-04

121

152

2004-05

130

179

2005-06

159

81

2006-07

120

102

2007-08

25

169

2008-09

76

83

2009-10

71

74

2010-11

104

82

2011-12

154

74

2012-13

155

119

2013-14

108

120

G.Total

1527

1416

Tactful Management Research Journal | Volume 2 | Issue 12 | Sept 2014

ROLE OF SEBI IN INVESTORS PROTECTION IN INDIA

Source: - Annual reports of SEBI

Table 3 shows that SEBI has taken up 1527 cases for investigation during the period 2000-01 to
2013-14 and 1416 cases have been completed which tantamount to 92.7 percent of taken up cases. The
cases which are taken for investigation, involves serious type of complaints lodged by investors. SEBI is
also empowered to initiate investigation if it feels it necessary to do so for protection of investors interest.
The investigations are carried out on receipt of complaints regarding price rigging, insider trading, issue
related manipulations and matters of takeover of companies.
Table 4. Nature of Investigation taken up by SEBI

Particulars
Market
Manipulation
and
Price
Rigging

200001

200102

200203

200304

200405

200506

200607

200708

200809

200910

201011

201112

201213

201314

47

86

95

96

110

137

95

12

52

44

56

73

86

67

Issue
related
Manipulation

35

43

Insider Trading

16

13

14

18

14

10

28

24

11

13

Takeovers
Misc.

1
9

1
7

9
6

2
7

1
10

4
15

2
5

2
4

3
5

2
13

4
10

2
20

3
12

6
16

G.Total

68

111

125

121

130

165

120

25

76

71

104

154

155

108

Source: -Annual Reports of SEBI

Table 5. Nature of Investigation Completed by SEBI
2000Particulars
01
Market
Manipulation
and
Price
27
Rigging
Issue
related
Manipulation
Insider Trading
Takeovers
Misc.
G.Total

8
4
3
4
46

200102

200203

200304

200405

200506

200607

200708

200809

200910

201011

201112

201213

201314

11

72

122

148

62

77

115

62

46

51

37

41

73

0
6
1
3
21

8
14
7
5
106

3
9
3
15
152

2
10
2
17
179

1
8
3
7
81

4
10
3
8
102

3
28
2
21
169

1
12
1
7
83

7
10
5
6
74

2
15
4
10
82

4
21
2
10
74

52
14
2
10
119

12
13
6
16
120

Source: - Annual reports of SEBI

The table 3 and 4 show the nature of investigation taken and completed by SEBI. SEBI
investigated the matters related to market manipulation, price rigging, issue related manipulation, insider
trading and takeovers etc. The largest numbers of investigation undertaken and completed are related to
market manipulation and price rigging followed by insider trading.
Table 5. Action Taken by SEBI
Cancellation

200001
1

200102
1

200203
11

200304
3

200405
3

200506
2

200607
0

200708
0

200809
0

200910
0

201011
5

201112
0

201213
3

201314
1

Suspension

42

43

42

36

52

44

46

48

36

16

31

36

62

22

53

71

27

48

179

37

17

951

77

449

Prohibitive
directions issued
under Section 11B
of SEBI Act

21

98

140

106

134

632

345

537

230

691

268

487

168

270

Issues
refunded/option
given/ others

156

63

32

485

707

G.Total

39

143

257

174

232

741

424

629

461

932

389

1486

764

1436

Particulars

Warning
Warning
Issued

Issued/
Letter

Source: - Annual Reports of SEBI

Table 5 shows the action taken by SEBI against the defaulting companies. The SEBI has issued
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ROLE OF SEBI IN INVESTORS PROTECTION IN INDIA

270 prohibitive directions under Section 11B of SEBI ACT during the year 2013-14 whereas in 2012-13,
the number was 168. These directions have the strong and salutary effect of deterrence and also act as an
effective tool to deal with emergent situations requiring a timely and faster response. Similarly SEBI has
issued 449 warning letters to various companies during the year 2013-14.
Table 6. Trends in Awareness Programmes/Workshops and Regional Seminars Conducted by
SEBI
Particulars
2011-12

2012-13

2013-14

No. of Awareness Programmes/Workshops conducted

175

206

224

47

44

77

No. of Regional Seminars conducted

Source: - Annual Reports of SEBI

SEBI has issued News-Letters and publish magazine named Market Review to educate the
investors and organize various workshop for the benefit of investors. It also conducts and publishes various
surveys for finding out the investment opportunities for investors. SEBI is conducting various
programmes/workshops and seminars at different parts of the country to educate the investors about the
securities market operations. Table 6 shows that the number of awareness programmes/workshops and
seminars is increasing and these programmes are now organized in small cities as well for the benefit of
investors from these cities.
SEBIS GUIDELINES FOR INVESTORS PROTECTION
SEBI has issued various guidelines for the protection of investors from malpractices adopted by
issuers and intermediaries of the market. SEBI has introduced Stockinvest, a new instrument for
submitting the application for allotment of shares. These instruments provide protection to investors as
they get interest on the application money till the allotment of shares. Also SEBI has introduced ASBA
(Application Supported by Blocked Amount) means an application for subscription of shares with an
authorization to bank to block the money in a bank account and the issuer cannot use this money till the
allotment of shares. SEBI has issued various guidelines for full disclosure of all material facts in the
financial statements. It has revised the format of prospectus to provide the full, fair and true information to
the prospective investors. Also it make mandatory for Issuer Company to attach an abridged prospectus
with every share application form. It has issued new code for regulating the issues involved in takeovers,
merger, and amalgamation of companies including substantial acquisition of shares to protect the investors
interest even though they are not direct party to such cases. SEBI has issued detailed disclosure and
investor protection guidelines, 2000 which are amended from time to time. The brief features of these
amended guidelines are as follows: ?
No issuer company shall make any public issue of securities unless a draft prospectus has been filed with
the Board through a merchant banker, at least 30 days prior to the filling of the prospectus with the ROC.
?
No listed issuer company shall make any right issue of securities, (where the aggregate value of such
securities including premium, if any exceeds Rs. 50 Lacs) unless a draft letter of offer has been filed with
the Board, through a merchant banker, at least 30 days prior to the filling of the letter of offer with the
Designated Stock Exchange (DSE).
?
It contains provisions for dematerialization of securities.
?
It makes the credit rating for issue of Debt instruments compulsory for companies.
?
It provides for grading of IPO if IPO is made by an unlisted company.
?
No Company shall make a public or right issue of securities unless firm arrangements of finance through
verifiable means towards 75 percent of the stated means of finance, excluding the amount to be raised
through proposed public/right issue, has been made.
?
It provides detailed guidelines for pricing of equity shares and other securities likely to be issued by listed
and unlisted companies.

Tactful Management Research Journal | Volume 2 | Issue 12 | Sept 2014

ROLE OF SEBI IN INVESTORS PROTECTION IN INDIA

?
Issuer company can mention a price band of 20 percent (cap in the price band should not be more than 20
percent of the floor price) in the offer documents filed with the Board and actual price can be determined at a
later date before filling of the offer document with Registrar of Companies (ROC).
?
It provides guidelines for promoters contribution in a public issue by unlisted companies, listed
companies and in case of offer for sale to the tune of 20 percent of the Post issue capital. However, the
requirement of promoters contribution shall not be applicable in case of public issue of securities by a
company which has been listed on a stock exchange for at least 3 years and has a track record of dividend
payment for at least 3 immediately preceding years. The lock in period for promoters contribution will be
of 3 years.
?
It provides guidelines to submit Due Diligence Certificate by Lead Merchant Banker to the Board as
specified in Schedule III along with the draft.
?
It provides detailed guidelines about contents of Prospectus and offer documents to safeguard the interest
of investors.
?
The detailed guidelines regarding issue of Indian Depository Receipts (IDR) are given in Chapter VI A of
these guidelines.
?
It contains provisions related to submission of Post-Issue Monitoring Reports as per formats specified in
Schedule XVI by Lead Merchant Bankers. These reports shall be submitted within 3 working days from
the due dates. Also the 50 Days Post-Issue Monitoring Report is to be submitted with the Board. The Lead
Merchant Banker shall file a post issue due diligence certificate in the format given in Schedule XVI-A
alongwith final Post-Issue Monitoring Report.
?
The post issue Lead Merchant Banker shall actively associate itself with post-issue activities namely
allotment, refund, dispatch and giving instructions to self certified syndicate banks and shall regularly
monitor redressal of investor grievances arising there from.
?
The post issue Lead Merchant Banker shall ensure that money received pursuant to the issue is kept in a
separate bank (i.e. Banker to an issue) as per provisions of section 73 (3) of the Companies Act 1956 and is
released by the said bank only after the listing permission under the said section has been obtained from all
the stock exchanges where the securities was proposed to be listed as per the offer document.
?
Post-Issue Lead Merchant Banker shall ensure that in all issues, advertisement is made with details
relating to oversubscription, basis of allotment, number, value and percentage of all applications including
Applications Supported by Blocked Amount(ABSA), number, value and percentage of successful allottees
for all applications including Applications Supported by Blocked Amount, date of completion of dispatch
of refund orders/instructions to self certified syndicate banks by the Registrar, date of dispatch of certificate
and date of completion of the various activities at least in an English National Daily with wide circulation,
one Hindi National Paper and a Regional Language Daily circulated at the place where registered office of
the issuer company is situated.
?
It provides guidelines for reservation for Retail Investors in a public issue to the tune of 50 percent of the
total issue. The provisions for reservation for different category of investors are also given in these
guidelines in case of allotment by book building process is made.
?
Subscription list for public issue shall be kept open for at least 3 working days and not more than 10
working days. Right issue shall be kept open for at least 15 days and not more than 30 days.
?
The quantum of issue whether through a rights or a public issue, shall not exceed the amount specified in
the prospectus/letter of offer.
?
The issuer has the option to have a public issue underwritten by the underwriter.
?
The issuer shall not offer any incentive to the prospective investor by way of medical insurance scheme,
lucky draw and prizes etc.
?
The lead managers shall ensure adequate disclosure in the offer documents, more particularly relating to
the terms and conditions, redemption, security, conversion and any other relevant features of any new
financial instruments such as Deep Discount Bonds, Debentures with warrants, Secured Premium notes
etc.
?
An issuer company making a public offer of equity share can avail of the Green Shoe Option (GSO) for
stabilizing the post listing prices of its shares, subject to the provisions of these guidelines.
?
An issue advertisement shall be truthful, fair and clear and shall not contain any statement which is untrue
or misleading.
?
No company shall issue a prospectus or a letter of offer to the public for subscription of its debentures,
unless the company has appointed one or more debenture trustees for such debentures in accordance with
the provisions of the Companies Act, 1956.
?
For the redemption of the debentures issued, the company shall create Debenture Redemption Reserve in
accordance with the provisions of the Companies Act, 1956.
?
A company proposing to issue capital to public through the on-line system of the Stock Exchange for offer

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ROLE OF SEBI IN INVESTORS PROTECTION IN INDIA

of securities shall comply with the requirements as contained in these guidelines.

?
It contains guidelines regarding issue of shelf prospectus issued by public sector banks, scheduled

commercial banks or public financial institutions.

?
The detailed provisions regarding bonus issue, right issue, issue of fully convertible debentures and partly

convertible debentures are given in these guidelines to safeguard the interests of investors.
?
Foreign Portfolio Investors Regulations were notified in order to harmonize the different routes for foreign

portfolio investment along-with introduction of Institutional Trading Platform (ITP) for SME including
startups, adoption of new CPSS-IOSCO standards of PFMIs, launch of Cash Settled Interest Rate Futures,
Dedicated Debt Segments etc.
Further, with a view to streamline the investors grievance mechanism and the arbitration
mechanism at the stock exchanges, SEBI has provided the following measures: 1.The jurisdiction for appealing before the courts has been widened.
2.Starting of automatic process for selection of arbitrators from common pool of arbitrators without any
interference.
3.The number of investor service centers facilitating arbitration is increased from 8 to 16.
4.Facilitation desk have been installed at all investors service centres to assist investors in obtaining
documents/details from stock exchanges.
5.The fee for appeal with claim/counterclaim upto Rs. 10 Lacs is reduced from Rs. 30,000 to Rs. 10,000 to
unburden the investors.
6.15 days time limit has been set for stock exchanges to redress the investors grievances.
?
Stock exchanges have been advised to give interim monetary relief to investors with claim value upto Rs.
10 Lacs from Investor Protection Fund during the course of proceedings.
?
The SCORES system for online lodging of complaints and for redressal of complaints is established and is
working effectively.
?
Investor Protection and Education Fund was established on July 23, 2007 with an initial capital of Rs. 10
crore from the SEBIs General Fund. This fund is used for various educational and awareness activities,
funding investor education and awareness activities of investor association, aiding recognized investor
association to undertake legal proceedings in the interest of investor; refund of security deposit held by
stock exchanges and transferred to IPEF consequent to de-recognition after fulfilling condition for release
of deposit etc.
?
At SEBI, the Integrated Surveillance Department monitors market activities through its market alert
systems and is in charge of overall market surveillance. Effective market surveillance aims to facilitate
orderly markets by safeguarding the integrity of market and can achieve investor confidence and for
development of market.

To protect investors and market from fraudulent activities, SEBI tightened norms for moneypooling schemes and decided to keep serious offences out of its settlement mechanism. The new
regulations-pertaining to these areas also facilitate refund of small investors who suffers losses due to
irregularities in the market. With regard to Collective Investment Schemes (CIS), it would be compulsory
for all transactions to be conducted through cheque, draft or other banking channels and not in cash. Apart
from making the fund-raising activities of CIS more transparent, the move would make it easier to identify
the real investors involved in such schemes. In recent times, many cases of investors getting duped by
fraudulent money pooling schemes have come to light. For starting a CIS, a person needs to make an
application for registration as Collective Investment Management Company. The set of new norms is
called the SEBI (Collective Investment Schemes) (Amendment) Regulation, 2014. These rules are related
to an ordinance promulgated for the second time in September that provides for regulations of pooling of
funds under any scheme or arrangement, involving a corpus of Rs. 100 Crore or more and are deemed to be
a CIS. Further, stricter set of settlement norms have been notified. Under them, entities charged with
committing serious offences like illegal money pooling, insider trading and fraudulent trades would not be
able to settle them anymore. The new regulations have been notified with retrospective effect from April
20, 2007, the day when SEBIs existing consent settlement system was introduced.
The norms under SEBI (Settlement of Administrative and Civil Proceedings) Regulations, 2014
also provides for guiding factors for dealing with the settlement process, while serious offences such as
Insider Trading are excluded from the scope of settlement meanwhile, to help aggrieved investors, the
market regulator has notified new rules that allows it to utilize Investor Protection and Education Fund to
refund their money. This would be done in certain cases on it deems fit restitution to eligible and
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ROLE OF SEBI IN INVESTORS PROTECTION IN INDIA

identifiable investors who have suffered losses resulting from violation of securities laws.
CONCLUSION
SEBI has left no stone unturned for the safeguard of investors from the malpractices and
fraudulent practices of Issuers and market Intermediaries. SEBI is redressing the investors grievances by
carrying out investigation and action has been taken in case the grievances are not redressed by the
concerned quarter within the time frame. SEBI has issued various guidelines which are amended from time
to time to cope with the problems arises during the course to ensure that the savings of investors may remain
safe and to maintain the investors confidence across the country. However, SEBI is not fully successful in
its mission as evident from the report of Swaroop committee report which states that the investor population
in our country has declined from 20 million in the 1990s to just over 8 million in 2009. The main reasons for
this steep fall in investor population can be attributed to the rampant malpractices observed in the capital
market, the short changing of investors at various levels and the absence of any mechanism for expeditious
and satisfactory disposal of investor complaints in a time bound manner.
REFERENCES
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Parmod Kumar
H.O.D., Department of Commerce, Govt. College, Mokhra (Rohtak)

Tactful Management Research Journal | Volume 2 | Issue 12 | Sept 2014