Regulatory Framework and Investor Protection Mechanisms in Indian Capital Markets: Recent Developments and Challenges
Keywords:
Indian capital markets, SEBI regulations, investor protection, RBI capital market exposure, Financial stabilityAbstract
In the last ten years or so, India's financial markets have changed a lot. In India, the main laws that govern securities are the Securities Contract Regulation Act of 1956 and the SEBI Act of 1992. The Growth and Exchange Board of India was its security enforcer for many years. Toward the end of its existence, it focused on market development and regulation to protect investors' interests. Since 2025, a lot of new ideas and changes have been put into place in its financial environment. These changes were made to make things more open, give investors more confidence that they can get their money back if they need to, and promote stability. The SEBI (Prohibition of Insider Trading) Regulations, 2015, the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which set strict rules for corporate governance and disclosure for listed companies, and the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 are all very important rules. To better deal with changing market norms, recent changes have shortened the main stock settlement cycle (T+0), made definitions of insider trading stricter, made rights issue processes easier, and, in a way, started a review of ESG disclosure rules.
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