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The Financial Commission | UPSC Economics

The Financial Commission in India is an independent regulatory body that oversees the functioning of financial markets in the country. It was established in 1987 as part of the Securities and Exchange Board Of India(SEBI) Act and is responsible for regulating the securities and commodities markets in India.

Functions of the Financial Commission

1. Regulating the securities and commodities markets in India.

2. Protecting the interests of investors in these markets.

3. Ensuring that market participants comply with the regulations and guidelines set by SEBI.

4. Investigating and penalizing market participants who violate the regulations.

5. Promoting investor education and awareness about financial markets.

Structure of the Financial Commission

The Financial Commission consists of a chairman and two members who are appointed by the Central government. The chairman and members of the commission held office for a term of three years or until they attain the age of 65 years, whichever is earlier.

The commission is supposed by various departments, including the legal department, investigation department, and economic analysis department. These departments assist the commission in its regulatory and enforcement functions.

Role of the Financial Commission in investor protection

One of the primary functions of the Financial Commission is to protect the interests of investors in the securities and commodities markets. It does this by ensuring that market participants comply with the regulations and guidelines set by SEBI and by investigating and penalizing those who violate these rules.

The Financial Commission also plays a crucial role in promoting investor education and awareness about financial markets. It provides information and resources to investors to help them make informed investment decisions and protect their investments.

The Financial Commission in India plays a crucial role in regulating the SEBI markets and protecting the interests of investors. It’s regulatory functions ensure that the markets operate in a fair and transparent manner, while its investor protection functions promote investor education and awareness about financial markets.

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