SEBI: A Tool to Safegaurd the Investors' Interests

The year 1991 witnesses a big push being given to liberalization and reforms in Indian financial sector. For sometime thereafter, the volume of business in the primary and secondary securities markets increased significantly. As a part of the same reform process ,the globalization of the Indian financial system made it vulnerable to external shocks. The multi crores securities scam rocked the Indian Finance System in 1992. All these developments impressed on the authorities the need to have in place a vigilant regulatory body. It was felt that the then existing regulatory framework was fragmented ill coordinated and inadequate and that there was a need for an autonomous, statutory .integrated organization to ensure the smooth functioning of the Indian Finance System. The Securities And Exchange Board of India (SEBI) came into being in response to these requirements.