Whose job is to take effective control over the Indian stock market?

Question

Accepted Answer

The correct option is 2:

The correct answer is SEBI, which stands for the Securities and Exchange Board of India. SEBI is the statutory regulatory body established by the Government of India in 1992 to protect the interests of investors in securities and to promote the development of and regulate the Indian securities market. Its primary role is to ensure the orderly and safe functioning of the stock market, addressing issues like insider trading, fraudulent and unfair trade practices, and investor grievances. By regulating intermediaries like brokers, merchant bankers, and other financial institutions, SEBI maintains effective control and transparency over the entire Indian stock market.

The incorrect option is 1: IRDA.
IRDA stands for the Insurance Regulatory and Development Authority of India. Its job is to regulate and promote the insurance and reinsurance industry in India, not the stock market.

The incorrect option is 3: NSDL.
NSDL stands for the National Securities Depository Limited. It is one of the two main depositories in India, responsible for holding securities in electronic form (dematerialization). While NSDL is a critical part of the capital market infrastructure, it is not the primary regulator.

The incorrect option is 4: NSE.
NSE stands for the National Stock Exchange of India. It is one of the premier stock exchanges where trading takes place. NSE is a market participant, and while it must follow rules, it is regulated by SEBI and does not exercise overall control over the entire Indian stock market.