Following is the role of SEBI to regulate Indian Financial Markets-:

1)Enhancing transparency

The Indian financial markets now have more openness thanks in large part to SEBI. To guarantee that investors have access to timely and accurate information, it has implemented the following  procedures-:

i)Mandatory disclosure standards: Firms that are listed on stock exchanges must follow strict guidelines when it comes to disclosing information about their shareholding patterns, financial performance, and other pertinent topics.

ii)Investor grievance redressal system: SEBI has established a robust grievance redressal system for investor concerns and regulates market intermediaries like depositories and stockbrokers to ensure legal compliance and investor protection.

iii )Programs for investor learning: To raise investor awareness and give them the tools they need to make wise investment decisions, SEBI runs programs for investors.

2)Addressing Emerging Challenges

SEBI is actively addressing emerging issues in Indian financial markets, particularly the risks linked to high-frequency trading and the expansion of crypto-assets.

i)Crypto assets: SEBI cautions investors about cryptocurrencies, despite blockchain technology’s benefits, due to volatility, lack of regulation, and potential abuse, advising them of the associated risks.

ii)High-frequency trading, or HFT, is the practice of executing numerous deals in a brief amount of time by utilizing complex algorithms and fast connections. SEBI has strengthened market surveillance systems and restricted algorithmic trading to mitigate risks associated with HFT, despite its potential for market manipulation and disruption.

Conclusion

SEBI has made significant strides in protecting investor interests and regulating Indian financial markets, but to ensure continued growth and stability, it must continually innovate and adapt.