(b) An Appraisal / Assessment of SEBI’s Work

♤ In the recent past, successful cases of grievance redressal by SEBI have increased.. However, a survey shows that most of the investors were not satisfied with the redressal mechanism and result.

♤ Moreover, SEBI is not able to do much about ‘fly by night’ or ‘sign-board’ companies who vanish after collecting huge money.

♤ SEBI has been too busy in framing rules and regulation giving rise to complex and cumbersome framework, which leaves scope for discretionary interpretation.

♤ It failed to punish those who caused abnormal fluctuations in the market. Due to this, small investors are losing confidence in investing.

♤ The autonomy of SEBI has been compromised as it, more or less, functions as a branch of the Union Finance Ministry.

♤ Also Despite statutory powers on par with a civil court, SEBI hasn’t made much headway

when it comes to enforcement.

♤ Some violations, especially by the larger players are ignored or go unnoticed due to the

regulator’s limited access, insufficient resources or government intervention.