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CS Executive · Capital Market and Securities Laws · Basics of Capital Market

Meera, a retail investor in Pune, wants to know which statutory body primarily regulates stock exchanges, mutual funds and other intermediaries in India's securities market and protects investor interests. Which body is it?

The Securities and Exchange Board of India is the primary regulator of the securities market. It was set up under the SEBI Act, 1992 to protect investors, promote market development and regulate exchanges, mutual funds and intermediaries. RBI and IRDAI regulate banking and insurance respectively.

  1. ASecurities and Exchange Board of IndiaCorrect
  2. BReserve Bank of India
  3. CInsurance Regulatory and Development Authority of India
  4. DMinistry of Corporate Affairs

Explanation

SEBI, established under the SEBI Act, 1992, is the principal regulator of the securities market, covering exchanges, mutual funds and intermediaries. RBI mainly regulates banking and money markets, and IRDAI regulates insurance, so they are not the primary securities regulator.

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