Business Ethics and Corporate Governance, Second Edition

LAW ENFORCEMENT FOR INVESTOR PROTECTION

There are several agencies in India that are expected to protect investors. In fact, there are so many with overlapping functions that they cause confusion to the investors as to whom they should go to for redressal of their grievances. The stated primary objective of the country’s sole capital market regulator, the Securities and Exchange Board of India, popularly known as SEBI, is protection of investors’ interests. SEBI has provided guidelines for an efficient redressal process in its reference guide for investors (Box 8.2). But, investor protection is a multi-dimensional function, requiring checks at various levels, as shown below:

• Company level: Disclosure and corporate governance norms.
• Stock brokers ...