Shreshtha Khatri & Shreya Shukla, Institute of Law, Nirma University
ABSTRACT
An essential component of the world economy is the securities market. It is regulated by five key laws in India. Recent events, however, in light of the turmoil caused by the contested Adani-Hindenburg discovery, emphasize the urgent need to re-evaluate the necessity of regulating the securities market as well as the evident inefficiency of current rules to appropriately oversee the securities market in India. Moreover, stricter securities market regulation is necessary to support the SDGs in a way that promotes a more stable and resilient financial system.
INTRODUCTION
The securities market is a vital part of the global economy. It provides a platform for companies to raise capital through the issuance of stocks, bonds, and other financial instruments.1 The securities market also delivers investors with a prospect to invest their money and earn returns on their investment. In India, five key laws regulate the securities market- SEBI Act 1992, Securities Contracts (Regulation) Act (SCRA), Companies Act 2013, Prevention of Money Laundering Act and the Depositories Act, 1996. However, recent developments, in light of the ruckus ensued from the impugned Adani-Hindenburg revelation, highlight the urgent need to re-evaluate the necessity of regulating the securities market and the glaring inefficiency of these laws to adequately regulate the securities market in India.
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