Reforms in Capital Market in India and the role of SEBI

Abstract

Prior to the 1991 reforms, a comprehensive system of State controls assured the State’s almost complete domination of the financial or capital markets. In 1991 with the announcement of the economic reforms package, the volume of business in both primary and secondary segments of the capital market of our economy increased enormously. But after the multi-crore securities scandal in 1992, the SEBI (Securities and Exchange Board of India) to come into existence with a lot of powers conferred on it, to monitor and regulate the capital market. The work done by the SEBI so far is promising for the progress of our stock market. There are few instances existed when in spite of having a well formulated legal framework scandals emerged in our capital market. However, the regulatory system is needed to be revised.