The Pillars of Indian Capital Markets: SEBI, Stock Exchanges, Depositories, and the Regulatory Framework
The Indian stock market stands as a cornerstone of the nation's economic architecture, acting as a vital engine for capital formation and a crucial platform for investment. By providing a structured and regulated environment for the trading of securities, stock exchanges empower companies to raise essential capital for growth and innovation, while simultaneously offering investors diverse avenues for wealth creation. This intricate ecosystem is underpinned by a robust legal framework and facilitated by key institutions, primarily stock exchanges and depositories, each playing a distinct yet interconnected role in ensuring the efficient and transparent functioning of the market. As per the Securities Contracts (Regulation) Act, 1956 under Section 2(j) defines a “stock exchange” means— (a) any body of individuals, whether incorporated or not, constituted before corporatisation and demutualisation under sections 4A and 4B, or (b) a body corporate incorporated under the Companie...