ASSESSING THE EFFICACY OF SEBI IN REGULATING CAPITAL MARKETS: A CRITICAL ANALYSIS OF INVESTOR BEHAVIOUR AND MARKET INTEGRITY
AUTHORS – YASH PAREKH* & DR. MAYURA SABNE**
* STUDENT AT UNITEDWORLD SCHOOL OF LAW, KARNAVATI UNIVERSITY
** ASSISTANT PROFESSOR OF LAW, UNITEDWORLD SCHOOL OF LAW, KARNAVATI UNIVERSITY
BEST CITATION – YASH PAREKH & DR. MAYURA SABNE, ASSESSING THE EFFICACY OF SEBI IN REGULATING CAPITAL MARKETS: A CRITICAL ANALYSIS OF INVESTOR BEHAVIOUR AND MARKET INTEGRITY, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (5) OF 2025, PG. 605-618, APIS – 3920 – 0001 & ISSN – 2583-2344
The Indian Capital Markets and its regulator, the Securities and Exchange Board of India (SEBI) forms a very robust structure for our country’s economy and its citizens alike. This research paper will critically analyze the effectiveness of our market regulator SEBI and will have specific emphasis on the Investor Behaviour and Market Integrity being challenged through the emerging issue of Financial Influencers, more commonly referred to as “Finfluencers” in this new age of investment aimed at influencing the youth for ulterior motives. The paper will focus on the insights of the concept of Indian Capital Markets, the Regulatory Landscape, concept of Finfluencers and the risks they pose and certain recommendations in curbing this emerging problem that sways investor behaviour and the market’s integrity in regulating this issue. Investor Behaviour is the highlight of this research as it is based on the rapid emergence of young investors triggered by the Covid-19 pandemic and the prospects of earning quick equity and returns. This research will also emphasize upon the need for a robust regulatory framework especially for safeguarding young investors from herd mentality and panic selloffs. This research brings academic understanding between behavioral finance and regulatory oversight and digital media systems which generates beneficial information for policymakers to handle financial regulation challenges during digital times. The findings suggest that regulators should implement specific changes to support market equilibrium while keeping investor trust intact and solve the problems caused by finfluencers within Indian capital market transformations. The main emphasis focus of this paper involves in the stringency and need of a robust regulatory mechanism to combat such emerging challenges and issues.
Keywords: Investor Behaviour, SEBI, Finfluencers, Market Integrity, Robust Regulatory Framework