The financial markets in India are regulated and developed by The Securities and Exchange Board of India (SEBI) which is a pivotal role player. SEBI was established in 1988 and in 1992 it was granted statutory powers for fair and transparent operation of the securities market. Amongst this key function include; protecting investors’ interests, regulating stock market exchanges as well as supervising intermediaries such as brokers, mutual funds as well as depositories.

SEBI builds regulations to avoid evildoings, for instance, insider trading and fraud, thus maintaining the integrity of the market. It also encourages market development by introducing new products as well as educating investors in financial matters. In addition, SEBI supervises corporate governance practices and makes sure that companies follow up on their disclosure requirements thereby improving transparency.

By enforcing rules and penalizing violations, SEBI raises confidence levels among India’s domestic and foreign investors in addition to contributing towards stabilizing and increasing the levels of the country’s financial market.