"SEBI has come a long way since its inception as an institution regulating the Indian Capital Markets. It has initiated a lot of reforms to make the market more safer for customers." Explain briefly the major policy init

SEBI has indeed come a long way since its inception as an institution regulating the Indian Capital Markets, initiating numerous reforms to make the market safer for investors. Major policy initiatives taken by SEBI since its inception include: Screen Based Trading: A significant developmental initiative was the introduction of a nationwide online fully-automated screen-based trading system (SBTS). This system allows members to punch in quantities of securities and prices, with transactions executed as soon as a matching buy or sell order is found. Depositories Act: The earlier settlement system posed settlement risks due to time taken for settlement and physical movement of paper. To overcome these issues, the Depositories Act, 1996, was passed to establish depositories for securities. Derivatives: To help market participants manage risks through hedging, speculation, and arbitrage, the Securities Contracts (Regulations) Act was amended in 1995 to lift the ban on options in securities. Settlement Guarantee: Various measures were taken to address market risk. Clearing corporations emerged to assume counterparty risk, and trade and settlement guarantee funds were set up to guarantee trade settlements irrespective of broker defaults. The market transitioned from T+3 to T+2 rolling settlement from April 1, 2003. Straight-through processing was made mandatory for all institutional trades. Securities Market Awareness: In January 2003, SEBI launched a nationwide campaign to educate investors about market risks and their rights and obligations. Corporate Governance: SEBI amended Clause 49 of the listing agreement to improve corporate governance standards. Changes included provisions for independent directors, audit committee responsibilities, financial disclosures (including related party transactions), formal codes of conduct, CEO/CFO certification, and improved shareholder disclosures. Guidelines for Issue of Indian Depository Receipts (IDRs): SEBI issued guidelines on disclosures and related requirements for companies issuing IDRs in India, along with prescribing the listing agreement for such entities. Setting up of SME Exchange: SEBI established a framework for setting up new exchanges or separate platforms on existing stock exchanges for SMEs. Market making was made mandatory for all scrips listed and traded on SME exchanges. Business Responsibility Reports: SEBI inserted Clause 55 in the Equity Listing Agreement, mandating the inclusion of Business Responsibility Reports (BR reports) in annual reports for listed entities, aligning with the 'National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business'. Enhanced Corporate Governance Standards: To address concerns related to private equity funds incentivizing promoters and key managerial personnel, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, were amended to include provisions for disclosures and board/shareholder approval.