Securities Regulation and Investor Protection - A Legal Analysis in Financial Market

Abstract - Generally, liberalized securities contribute to economic growth. The level of economic growth is directly related to how liberalized a securities market is. The SEBI Act 1992 (Securities and Exchange Board of India) aims to protect the interests of investors in the securities market, promote development, and regulate the market. It was considered important to extend the jurisdiction of SEBI, increase its autonomy, and empower it to handle situations where the Act is violated. The investor forum and other authorities should have the authority to resolve cases quickly and provide compensation to affected investors. It is not sufficient to punish the guilty party. The guilty should be punished as an example, and investors must have the means to recover losses caused by them. The law should give authorities the power not only to impose penalties but also to provide compensation to investors. Keywords - securities, depository, public issue.