A STUDY ON SEBI REGULATIONS AND THEIR IMPACT ON STOCK MARKET TRANSPARENCY IN INDIA
AUTHOR – GODHAWARI P, ASSISTANT PROFESSOR AT SCHOOL OF LAW, VISTAS, CHENNAI
BEST CITATION – GODHAWARI P, A STUDY ON SEBI REGULATIONS AND THEIR IMPACT ON STOCK MARKET TRANSPARENCY IN INDIA, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (13) OF 2025, PG. 01-06, APIS – 3920 – 0001 & ISSN – 2583-2344.
ABSTRACT
The Securities and Exchange Board of India (SEBI) plays a pivotal role in maintaining transparency, fairness, and efficiency in India’s stock market. This study examines SEBI’s regulatory framework and its impact on enhancing stock market transparency, investor confidence, and corporate accountability. Established in 1988 and granted statutory powers in 1992, SEBI has introduced several landmark regulations such as the SEBI (Prohibition of Insider Trading) Regulations, 2015, the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. These frameworks have strengthened investor protection, improved disclosure norms, and curbed unethical practices like insider trading and market manipulation. The paper also evaluates SEBI’s enforcement and surveillance mechanisms, including the Integrated Market Surveillance System (IMSS) and the Data Warehousing and Business Intelligence System (DWBIS), which have enhanced real-time monitoring and fraud detection. Despite these advancements, emerging challenges such as algorithmic trading, cryptocurrency-related risks, and global financial integration necessitate continuous regulatory evolution. The study concludes that SEBI’s proactive initiatives have significantly improved market transparency and investor trust but emphasizes the need for greater technological integration, faster dispute resolution, and stronger global cooperation. Recommendations include the adoption of AI-driven surveillance, stricter corporate governance enforcement, investor education programs, and clear guidelines for digital assets. Through these measures, SEBI can further strengthen India’s financial ecosystem and reinforce its position as a transparent and globally competitive investment destination.
KEYWORDS SEBI – Stock Market – Market Manipulation – Insider Trading – Regulations