Regulatory Framework for Securities Market

Introduction: The regulation of buying, selling, and dealing in securities, such as shares of a company, units of mutual funds, derivatives, etc., and stock exchanges, commodity derivative exchanges, and depositories, comes within the purview of the Securities and Exchange Board of India (SEBI) in terms of the SEBI Act, 1992 and various SEBI regulations, circulars, guidelines, and directives.
SEBI Establishment and Mandate: SEBI was established on April 12, 1992, with the mandate to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

Key Legislations Governing the Securities Market

The SEBI Act, 1992: Empowers SEBI with statutory powers for:
- Protecting the interests of investors in securities
- Promoting development of the securities market
- Regulating the securities market
The Companies Act, 2013: Provides regulations for:
- Issuance, allotment, and transfer of securities
- Related matters in public issues of securities
The Securities Contracts (Regulation) Act, 1956: Provides for:
- Recognition and regulation of transactions in securities in a Stock Exchange
The Depositories Act, 1996: Provides for:
- Electronic maintenance and transfer of ownership of dematerialized (demat) shares