Which organisation regulates and monitors the stock market and defends the benefits of the investors by imposing certain rules and protocols?

The correct answer is SEBI.

Key Points

• SEBI (Securities and Exchange Board of India) is the regulatory body responsible for overseeing and monitoring the securities and commodity markets in India.
• It was established in 1988 and given statutory powers on 12th April 1992, through the SEBI Act, 1992.
• SEBI's primary objective is to protect the interests of investors, regulate the securities market, and ensure its orderly functioning.
• It imposes rules and regulations on market participants to maintain transparency, reduce malpractices, and ensure fair trading practices.
• SEBI also regulates intermediaries such as stock exchanges, mutual funds, brokers, and portfolio managers to safeguard investor interests.

Additional Information

• Stock Market:
  • The stock market is a marketplace where shares of publicly listed companies are bought and sold.
  • It plays a crucial role in the economic growth of a country by enabling companies to raise capital and investors to gain returns.
• Functions of SEBI:
  • Protective function: Prevents fraudulent and unfair trade practices in the securities market.
  • Regulatory function: Regulates the activities of stock exchanges, brokers, and other intermediaries.
  • Developmental function: Promotes investor education and training of intermediaries.
• IRDA:
  • IRDA (Insurance Regulatory and Development Authority of India) is the regulatory body for the insurance sector in India.
  • It ensures the growth, regulation, and supervision of insurance companies.
• RBI and IEX:
  • RBI: Reserve Bank of India is the central bank of India, responsible for regulating monetary policy and banking operations.
  • IEX: Indian Energy Exchange is a platform for trading electricity and renewable energy certificates, not related to stock market regulation.