US SEC lacks jurisdiction to summon foreign national; Adani notice to be sent through proper channel
The Securities and Exchange Commission (SEC) is a vital regulatory agency responsible for overseeing the securities industry in the United States. Established in 1934, the SEC’s main objective is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.
One of the core functions of the SEC is to enforce securities laws by investigating potential violations and bringing enforcement actions against individuals or entities that break the rules. These enforcement actions can result in civil penalties, disgorgement of ill-gotten gains, and other sanctions.
In addition to enforcement actions, the SEC also conducts examinations and inspections of securities firms to ensure compliance with regulations. These examinations help to identify potential risks and prevent misconduct before it escalates.
The SEC also plays a critical role in promoting transparency in the securities markets. One way it achieves this is by requiring companies to disclose certain financial information to the public through periodic filings. These filings, such as annual reports (Form 10-K) and quarterly reports (Form 10-Q), provide investors with important information to make informed investment decisions.
Another key function of the SEC is to oversee the securities exchanges and self-regulatory organizations (SROs) like FINRA. By regulating these entities, the SEC helps to ensure that trading is conducted fairly and efficiently for all market participants.
Overall, the SEC plays a crucial role in safeguarding the integrity of the securities markets and protecting investors. By enforcing securities laws, conducting examinations, promoting transparency, and overseeing securities exchanges, the SEC works to uphold fair and efficient markets that inspire investor confidence.
