Volume 18, No. 6, 2021

SEBI's Regulatory role in strengthening Capital Market in India

Pankaj Kumar Srivastava


This research paper critically examines the regulatory role of the Securities and Exchange Board of India (SEBI) in strengthening the capital market within the Indian financial landscape. SEBI, established in 1988, has become a pivotal institution entrusted with overseeing and regulating the securities market in India. The abstract provides a succinct overview of the paper’s key components. The paper commences with an introduction, offering a brief background on SEBI and highlighting the pivotal role of capital markets in fostering economic development. It then delves into SEBI’s regulatory framework, exploring the legal foundations and the array of powers and responsibilities bestowed upon the regulatory body. The focus shifts to market integrity and transparency, examining SEBI’s surveillance mechanisms designed to detect market manipulation and its efforts to enforce disclosure requirements for listed companies. Another critical facet explored is SEBI’s role in investor protection. The paper analyzes the measures implemented by SEBI to safeguard the interests of investors and ensure fair treatment, acknowledging the paramount importance of building trust in the capital market. Moving forward, the research scrutinizes SEBI’s initiatives aimed at market development, emphasizing the regulator’s role in enhancing efficiency and encouraging innovations and new financial instruments. Concurrently, it investigates the challenges faced by SEBI and addresses criticisms, presenting a balanced view of the regulatory landscape. The paper employs case studies to illustrate specific instances where SEBI’s interventions played a pivotal role, providing a nuanced understanding of its impact on the capital market. The research concludes with an exploration of the future outlook, anticipating potential reforms, developments in SEBI’s role, and strategies for addressing anticipated challenges. Thus, this comprehensive examination contributes to the academic discourse surrounding SEBI’s regulatory prowess, offering valuable insights into its multifaceted role in fortifying and shaping the dynamics of the capital market in India.

Pages: 9466-9487

Keywords: SEBI, Capital Market, Regulatory Framework, Investor Protection, Market Integrity, Financial Surveillance, Market Development.

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