ROLE OF SEBI IN CURBING MARKET MANIPULATION AND INSIDER TRADING

This research paper examines the role of SEBI in keeping the securities market free from fraudulent activities like market manipulation and insider trading. SEBI has enacted several legislation and guidelines to curb these malpractices in the market but instead of that, there are lots of cases of market manipulation and insider trading that occurred in the past few years.

Despite looking into numerous cases of insider trading over the past 20 years, SEBI has not been able to successfully convict many of them. The penalties are sometimes so minimal that any deterrent impact that the restrictions may have had is lost, even in cases where the offenders are apprehended and punished.

This research paper starts by analyzing the SEBI ICDR Regulations in facilitating capital issuances and how it is protecting investors’ interests. Furthermore, it aims to descriptively analyze the SEBI Regulations regarding Insider Trading and Market Manipulation and how they help in curbing market manipulations. The researcher will also study the effectiveness of these regulations and whether these regulations are implemented or not.

This paper further discusses the present surveillance mechanism and investigation procedure of SEBI in case of market manipulation and insider trading and tries to find out the ways through which these surveillance mechanisms and investigation procedures can be made more effective.

Finally, this paper thoroughly analyzes the various challenges that SEBI faced while regulating the securities market, tries to identify potential areas for improvement, and suggests recommendations to enhance the effectiveness of SEBI in protecting the market from unfair practices.