Originally from:
International Securities Law and Regulation - 2nd Edition - Looseleaf
International Securities Law and Regulation - 2nd Edition - Electronic
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Introduction
Regulatory System
The existence of an efficient and smooth functioning capital markets plays an
important role in the economic development of a country.1 It is widely believed
that one of the key elements of a robust corporate governance regime in any
country is the existence of a well-administered securities market. The organized
securities market in India is almost 150 years old.
In 1877, the native stock and share brokers association (the ‘Bombay stock
exchange’) was founded to protect and further the interests of the brokers and
safeguard public dealing in securities by suppressing malpractices. Prior to
World War II, India had three stock exchanges (Bombay, Calcutta, and
Ahmadabad) and approximately 11, 372 joint-stock companies.
However, the watershed moment in India’s securities regulation came in
1991−1992 when the liberalization of the Indian economy resulted in major
reforms in the capital markets.2
The immediate effect of the liberalization was the diminishing role of the
government as a direct player in the financial market. This necessitated setting
up of procedures and guidelines for the creation and preservation of fair and...
India
Introduction
Regulatory System
Legal Sources
Authorities
Securities Market: Legal and Regulatory Order
Market Infrastructure Institutions
Foreign Investment in Market Infrastructure Institutions
Primary Market
Secondary Market and Takeovers
Disclosures
Corporate Governance
Insider Trading and Price Manipulation
Foreign Participation in the Securities Market
In General
Foreign Direct Investment
Jurisdictional Conflict
Conflict of Jurisdiction
Multilateral Approaches
Ankit Mishra and Sangeeta Rana, Nishith Desai Associates, Delhi, India
