GROWTH OF SEBI AS A REGULATOR OF THE INDIAN CAPITAL MARKET

Abstract

Securities Exchange Board of India is the regulator of the capital market and is responsible for overseeing the fair functioning of the capital markets. SEBI was not developed in a day. It was first established as a non-statutory body and then slowly built into a strong regulator by spreading its wings in the market by making various rules and regulations. It was established as a statutory body in the year 1992. By plugging various loopholes in the previous law, SEBI is trying to protect the interest of the investors. This paper describes the growth of SEBI in the Indian Capital Market in various phases of economic growth and fall in India. The financial market is growing at a rapid speed, therefore it is also getting more complex. SEBI has various rules and regulations to tackle the complexity in the market but how far it is successful is a big question. The last few months have seen a dramatic swing in the capital market due to Covid 19 virus pandemic. It becomes imperative that regulatory bodies like SEBI are vigilant to keep investors protected and informed about the risk of capital markets. This paper explains the current rules and regulations of the regulator in the capital market and how far the investors are aware of it and they are protected by SEBI and the Government of India.