'SEBI is the watchdog of security market''. Comment.

Answer

SEBI was set up in 1988 to regulate the functions of the securities market and to protect the interest of inestors but SEBI was found ineffective in regulating the activities of stock market. It was able to observe and watch only but failed to take corrective measure that is why it was called as watchdog. As a result in May 1992, SEBI was granted legal status. Now it is a body corporate having a separate legal existence and perpetual succession.
Now SEBI is considered as a watchdog because it performs the following to protect stcok exchange dealings.