What is the importance of Investor Protection?

SEBI AND INVESTOR PROTECTION : SEBI is basically for the protection of rights and
interests of investors particularly small investors who are scattered throughout the country
and have limited knowledge, experience and information as regards working of capital
market, stock exchanges and the operations of intermediaries. Naturally, SEBI has to give
special attention to protection and safety of investors. SEBI is playing a very useful role in
the field of investor protection, guidance and education during the last eight years.
Importance of Investor Protection : Investors are the real supporters of corporate sector
and capital market. They invest their hard earned money in the corporate securities.
Investors take the assistance of stock exchanges, brokers and mutual funds for investing
their funds. It is, therefore, necessary to see that their interests are protected properly. On
many occasions, they are misguided and exploited by supplying misleading, confusing and
inadequate information. This is unfair and even dangerous. It is therefore necessary to
give adequate safety and security to ordinary investors and their exploitation at the hands
of brokers, etc. must be avoided. SEBI is given this difficult and challenging responsibility.