Quasi-judicial bodies play an essential role in sectoral regulation. Critically evaluate the functioning of the Securities and Exchange Board of India (SEBI) in ensuring investor protection and maintaining market integrity.
Kartavya Desk Staff
Topic: Statutory, regulatory and various quasi-judicial bodies
Topic: Statutory, regulatory and various quasi-judicial bodies
Q4. Quasi-judicial bodies play an essential role in sectoral regulation. Critically evaluate the functioning of the Securities and Exchange Board of India (SEBI) in ensuring investor protection and maintaining market integrity. (15 M)
Difficulty Level: Medium
Reference: InsighstIAS
Why the question: SEBI’s increasing role in regulating India’s evolving financial markets, especially amid recent controversies like the Adani-Hindenburg case and the rise of digital financial instruments. Key demand of the question: The question requires an assessment of SEBI’s positive contributions to investor protection and market integrity, followed by identification of its challenges and potential reforms for improved performance. Structure of the Answer: Introduction: Briefly explain the role of quasi-judicial bodies in specialized regulation and introduce SEBI as India’s primary market regulator. Body: Positive Role of SEBI: Highlight SEBI’s key contributions like improving disclosure norms, investor grievance redressal, and enhancing market surveillance. Challenges Faced by SEBI: Discuss issues like delayed investigations, limited jurisdiction over new financial domains, and enforcement inefficiencies. Way Forward: Suggest reforms such as faster dispute resolution, capacity building, and increased investor education. Conclusion: Emphasize SEBI’s role as a critical watchdog while stressing the need for proactive reforms to safeguard investor interests and market stability.
Why the question:
SEBI’s increasing role in regulating India’s evolving financial markets, especially amid recent controversies like the Adani-Hindenburg case and the rise of digital financial instruments.
Key demand of the question:
The question requires an assessment of SEBI’s positive contributions to investor protection and market integrity, followed by identification of its challenges and potential reforms for improved performance.
Structure of the Answer:
Introduction: Briefly explain the role of quasi-judicial bodies in specialized regulation and introduce SEBI as India’s primary market regulator.
• Positive Role of SEBI: Highlight SEBI’s key contributions like improving disclosure norms, investor grievance redressal, and enhancing market surveillance.
• Challenges Faced by SEBI: Discuss issues like delayed investigations, limited jurisdiction over new financial domains, and enforcement inefficiencies.
• Way Forward: Suggest reforms such as faster dispute resolution, capacity building, and increased investor education.
Conclusion: Emphasize SEBI’s role as a critical watchdog while stressing the need for proactive reforms to safeguard investor interests and market stability.