The responsibility for regulating the securities market is shared by the Securities and ExchangeBoard of India (SEBI), the Reserve Bank of India (RBI), the Department of Economic Affairs (DEA)of the Ministry of Finance and Ministry of Corporate Affairs (MCA).
Securities Exchange Board of India (SEBI):
The Securities and Exchange Board of India (SEBI), a statutory body appointed by an Act ofParliament (SEBI Act, 1992), is the chief regulator of securities markets in India. It was established in the year 1988 and given statutory powers on 30 January 1992 through the SEBI Act, 1992. SEBI functionsunder the Ministry of Finance.
The main objective of SEBI is to facilitate growth anddevelopment of the capital markets and to protect the interest of all the investors.
Hence they have the tagline: SEBI-Har investor kitaaqat!’
Initially SEBI was a non-statutory body without any statutory power. However, in 1992, the SEBI was given additional statutory power by the Government of India through an amendment to the Securities and Exchange Board of India Act, 1992. In April 1988 the SEBI was constituted as the regulator of capital markets in India under a resolution of the Government of India. The SEBI is managed by its members, which consists of following:
The chairman who is nominated by Union Government of India.Two members, i.e., Officers from Union Finance Ministry. One member from the Reserve Bank of India. The remaining five members are nominated by Union Government of India, out of them at least three shall be whole-time members.