· The Central Government has authorized SEBI to frame its rules and regulation for actively monitoring capital markets. These rules and regulations will have to be approved by the government first.This will cause unnecessary delay and interference by the Finance Minister.
· SEBI will have to seek prior approval for filling criminal complaints for violations for the regulations. This will again cause delay at government level.
· SEBI has not been given autonomy. Its Board of Directors is dominated by government nominees. Out of 5 directors only 2 can be from outside and these are to represent the Ministries of Finance, Law and Reserve Bank of
SEBI has regulated:-
a) Primary Market
b) Secondary Market
c) Mutual funds
d) Foreign Institutional Investments