The Securities and Exchange Board of India (SEBI) became an autonomous body in _________ .

Question

Question

This question was previously asked in

KPSC KAS 2017-18 (Prelims) Exam Official Paper-I (Held On: 24 Aug, 2020)

Answer 1

The correct answer is 1992.

Key Points

Securities and Exchange Board of India (SEBI) is a statutory body and a market regulator, which controls the securities market in India.
The basic functions of SEBI are to protect the interests of investors in securities and to promote and regulate the securities market.
SEBI is run by its board of members. The board consists of a Chairman and several other whole time and part-time members. The chairman is nominated by the union government.
Before SEBI came into existence, the Controller of Capital Issues was the regulatory authority; it derived authority from the Capital Issues (Control) Act, 1947.
In 1988, SEBI was constituted as the regulator of capital markets in India.
Initially, SEBI was a non-statutory body without any statutory power. Following the passage of the SEBI Act by Parliament in 1992, it was given autonomous and statutory powers.

Additional Information

Securities Appellate Tribunal (SAT):
- SEBI also appoints various committees, whenever required to look into the pressing issues of that time.
- Further, a Securities Appellate Tribunal (SAT) has been constituted to protect the interest of entities that feel aggrieved by SEBI’s decision.
- SAT consists of a presiding officer and two other members.