What are various measures taken by SEBI to prevent scams in stock market?

The Securities and Exchange Board of India (SEBI) is the regulator of the securities market in India and is responsible for protecting the interests of investors and ensuring the integrity of the securities market. SEBI has taken several measures to prevent scams in the stock market, some of which include:

Strengthening regulation of listed companies: SEBI has strengthened its regulations on corporate governance, financial reporting, and disclosure to ensure that listed companies are transparent and accountable to their shareholders.


Surveillance and investigation: SEBI has set up a surveillance department to monitor the stock market and investigate any suspicious trading activity.


Insider trading regulations: SEBI has put in place regulations to prevent insider trading, which is the illegal practice of buying or selling securities based on non-public information.


Regulation of mutual funds and portfolio management services: SEBI has put in place regulations to protect the interests of investors in mutual funds and portfolio management services.


Regulation of market intermediaries: SEBI has put in place regulations for stockbrokers, merchant bankers, and other market intermediaries to ensure that they follow fair and transparent practices.


Investor education: SEBI has taken steps to educate investors about the risks and benefits of investing in the stock market, as well as how to identify and avoid fraudulent schemes.


Penalties and enforcement: SEBI has the power to impose penalties and take enforcement action against entities that violate its regulations, including fines and suspension or revocation of licenses.


Whistle blower mechanism: SEBI has set up a mechanism for whistleblowers to report any suspicious or fraudulent activity in the securities market, in order to identify and prevent any scams.


Cyber security: SEBI has taken measures to strengthen the cyber security of market infrastructure institutions, as well as to protect the interests of investors from cyber threats in the securities market.

It's important to note that despite these efforts, scams can still occur and it is important to be vigilant and informed to protect yourself from fraud and scams.