Regulators in the Securities Market

The following regulators share responsibility for overseeing the securities market in India:

1. Reserve Bank of India (RBI): Regulates contracts related to securities, money market securities, gold-related securities, derivatives, and forward contracts in debt instruments.

2. Securities and Exchange Board of India (SEBI): Regulates the securities market, including issuing orders and exercising powers under the Securities Contracts (Regulation) Act (SCRA).

3. Department of Company Affairs (DCA): Regulates company-related matters.

4. Department of Economic Affairs (DEA): Exercises powers under the SCRA, and some powers can also be exercised by SEBI.

Coordination and Appeals

• A High-Level Committee on Capital Markets coordinates the activities of these regulatory agencies.

• Orders issued by SEBI can be appealed before the Securities Appellate Tribunal.

SEBI's Administrative Role

SEBI administers the following laws:

1. The Depositories Act

2. The SEBI Act

Rule-making and Regulation

• The government frames rules under the securities laws

• SEBI regulates and administers these rules

Powers under the Companies Act

• SEBI has powers related to:

  • Issue and transfer of securities

  • Default in payment of dividends

• Specifically for:

  • Listed public companies

  • Public companies proposing to list their securities

Self-Regulatory Organizations (SROs)

• Ensure compliance with:

  • Their own rules

  • Relevant rules under securities laws

SEBI plays a crucial role in regulating and administering various aspects of the securities market, while SROs complement this effort by ensuring compliance with their own rules and relevant securities laws.