The Securities and Exchange Board of India (SEBI) was established in 1988 to regulate the securities market and protect investors. SEBI was not initially effective as it lacked legal authority but was granted legal status in 1992. SEBI's objectives are to regulate stock exchanges and protect investor rights and investments. It aims to balance self-regulation of the industry with statutory oversight to prevent fraud and misconduct. SEBI's functions include protecting investors from price manipulation and insider trading, educating investors, and registering and regulating intermediaries and mutual funds.