Major achievements of SEBI

♤ Dematerialisation of shares: After Depositors Act, 1996 was passed, physical certificates that were prone to postal delays, theft and forgery were done away with. This also prevented the issue of fake share certificates floating in the market. It enabled electronic trading enabling investors and traders to work from home.

♤ Faster Settlement Process: Sebi is credited with quickly moving from a T+5 settlement cycle in 2001 to T+2 in 2003, or two days between the trade and shares being credited to the buyers’ account, down from five.

♤ Stronger Regulations: To bring efficiency in the working of the secondary market, SEBI has laid down specific rules and regulations for intermediaries in the secondary market. They are required to adhere to specific capital adequacy norms, meet certain eligibility criteria and follow a code of conduct towards investors

♤ Fostering Mutual Funds Industry: The Mutual Fund Industry has grown several folds over the years. Till 1990s, the market was monopolized by the UTI. Currently, the Asset Under Management of the Indian MF Industry has grown from ₹ 6.30 trillion as on June 30, 2010 to ₹25.49 trillion as on June 30, 2020 more than 4 fold increase in a span of 10 years.

♤ Internet Trading: SEBI has allowed internet trading under Order Routing System (ORS) through registered stock brokers on behalf of clients. It has thus facilitated investors to buy and sell shares through the internet on their computers. It is a major advancement in trading shares at stock exchanges in India.

♤ Circuit – Breaker System: This system based on the market volatility of individual stocks. According to this system, if market volatility in a stock crosses a certain limit, the trading in this stock is stopped for a few days so that speculators may not take undue advantage.