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

Meera, a student, asks which statutory body is the principal regulator of the securities market in India, empowered to protect investor interests and regulate intermediaries. Which body fits this description?

The Securities and Exchange Board of India is the principal statutory regulator of the securities market. It protects investor interests, promotes development of the market and regulates intermediaries. RBI focuses on banking and money markets, while IRDAI regulates insurance, so neither fits the description.

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

Explanation

SEBI is the statutory regulator of the securities market, established to protect investors, promote market development and regulate intermediaries. RBI mainly regulates banking, money market and foreign exchange, so it is not the principal securities regulator. IRDAI regulates insurance.

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