Principles Of The SEBI Act
The powers and the principles of the SEBI are taken care of in the chapter number four of the SEBI Act. The section 11 of this act states that in accordance to the provision that is given in this act, it is the duty of SEBI to safeguard the interest of the people who invest in the securities. SEBI is also bound to make sure that the development of the securities is promoted and that time and again these securities are regulated. SEBI also has to make sure that any fraud or unfair practices in terms of trade in relation to the securities are eliminated. SEBI also has to forbid any kind of trading which can refer as insider of the securities. The section 11A of the SEBI act also gives SEBI the authorization to control or forbid the issuing of the prospectus, document of offer, or advertisement that solicits money for the issuance of the securities. These will be discussed below.
According to the Section 11A without discrimination to the provisions that are mentioned in the Companies Act 1956, the board can adopt these in order to protect the investors:
Specified by regulations
• The matters that relate to the issue of the capital, transfer of the securities, and any other matters that are incidental to these.
• The manner that will be adopted by the companies to disclose such matters
General or Special Order
• Forbidding the company for the issuance of the prospectus, the document of offer, or any advertisement that solicits money for issuing the securities, from the public.