The Roots of Indian Securities Market Regulations

The evolution of securities market regulations in India traces its origins to the Joint Stock Companies Act of 1850, influenced by English Corporate Law. The legislation evolved with the Companies Act of 1857 and 1866, with significant advancements like the introduction of limited liability. The Bombay Securities Contracts Control Act of 1925 marked the first dedicated regulation for stock exchanges. Control over capital issues began under the Defense of India Act, 1939, and evolved into the Capital Issues (Control) Act, 1947. Post-independence, the Securities Contract (Regulation) Act of 1956, further shaped market regulation. A major milestone was the establishment of the Securities and Exchange Board of India (SEBI) in 1988, which gained statutory status in 1992, which led to the repeal of the Capital Issues (Control) Act. SEBI's regulatory framework includes the SEBI Act, 1992, the Securities Contracts (Regulation) Act, 1956, the Companies Act, 2013, and the Depositories Act, 1996. SEBI's regulatory ambit expanded further with the integration of regulation of commodity derivatives under the securities market framework in 2015.