Strengthening Investor Protection: A Comparison Of Securities Regulation In India And The United States
- IJLLR Journal
- 3 days ago
- 2 min read
Rakhi, LLM, Amity Law School, Noida
Dr. Amit Dhall, Faculty of Law, Amity Law School, Noida
ABSTRACT
Focussing on the function and evolution of the Securities and Exchange Board of India (SEBI) and the U.S., this study offers a thorough comparative examination of securities regulation in India and the United States. ‘Securities and Exchange Commission of the United States (SEC)’. The paper looks at how these regulatory agencies have developed to handle issues in corporate reorganisation and stop securities fraud. It emphasises SEBI's evolution from an advisory body to a legal authority in reaction to significant market upheavals such the Harshad Mehta and National Spot Exchange Limited (NSEL) frauds. These incidents revealed flaws in India's securities industry and motivated changes to strengthen enforcement and openness.
The study also investigates India's securities market evolution in relation to fast economic liberalisation and technology developments, which have called for more robust regulatory frameworks. By contrast, the SEC's regulatory system in the United States is presented as the outcome of centuries of legal evolution and rigorous enforcement customs, therefore setting a standard for world market control.
The article offers a thorough comparative study of the two jurisdictions using a doctrinal research method that integrates statutory law, case studies, and historical analysis. Examining SEBI's structural and functional changes in relation to the SEC, evaluating differences in enforcement systems, and judging how regulatory policies affect market integrity and investor protection are among main goals.
The results show that although both SEBI and the SEC have the same aim of protecting investors and guaranteeing market discipline, the SEC's long- standing legal authority and aggressive enforcement policies produce a more immediate fraud deterrent. By contrast, SEBI's relatively recent development and reactive policy actions have created enforcement difficulties, especially in the prompt application of sanctions and inter-agency cooperation.
