The stock market is a vital aspect of a country’s economy and is considered a barometer of its financial health. In India, the stock market has undergone significant changes in recent years, and the Indian government and various regulatory bodies have played a crucial role in shaping it.
Stock Market Regulatory Body – SEBI
The Securities and Exchange Board of India (SEBI) is the primary regulatory body responsible for the regulation of the stock market or share market in India. SEBI has introduced several measures to improve the functioning of the share market, promote transparency, and protect the interests of investors. For example, SEBI has introduced mandatory dematerialization of shares, which ensures that all shares are held in electronic form, making it easier for investors to buy and sell shares.
The Indian government has also played a crucial role in shaping the share market by implementing policies and regulations that encourage growth and stability. For instance, the government has introduced measures to reduce the dependency on physical share certificates and promote a more digitized and streamlined process for buying and selling shares.
Stock Market Regulatory Body – RBI
Another important regulatory body in India is the Reserve Bank of India (RBI), which plays a crucial role in ensuring the stability of the financial system. The RBI has implemented various measures to regulate the flow of funds in the share market, including the setting of interest rates, open market operations, and cash reserve ratios.
The trend of digitalization has also had a significant impact on the Indian share market. With the increasing popularity of online trading platforms, the government and regulatory bodies have taken steps to ensure that these platforms are secure and transparent. The Ministry of Corporate Affairs has introduced the ‘e-KYC’ process, which enables investors to complete their KYC (Know Your Customer) requirements digitally, making the process of investing in the share market more convenient and efficient.
In conclusion, the Indian government and regulatory bodies have played a crucial role in shaping the stock market in India. With the introduction of measures aimed at promoting transparency, protecting the interests of investors, and encouraging growth and stability, the Indian stock market is poised for even greater growth in the future.
Disclaimer – Viewers are advised with folded hands to read all related documents carefully before buying or investing in the stock market. There are risks involved as the prices fluctuate.
Also read: Current state of Indian Stock Market and its Future Outlook
