India, a country full of opportunities provides various scopes for investments for its investors within and outside India. However, out of the three routes being International, Foreign and domestic investment, the domestic mode of investment is the most preferred mode of investment. Within the domestic finance market, the Indian capital market, so called the stock market poses tremendous growth opportunities as well as attracting vulnerable scams and frauds posing critical risks to the investors. In order to monitor this, SEBI is the primary regulator of the Indian secondary market functioning since 1992. It has various roles starting from regulation of stock exchanges, market participant, stock brokers to imposing serious restrictions on unfair practices. The most condemning of those unfair practices include market manipulation and insider trading which has become a common practice among big players in market which is very evident from the major scams that have occurred down the history lane of Capital Market. So, this research paper aims to elucidate what major roles SEBI plays in regulation of these contemporary issues, its evolution and history of occurred scams, how there had been subsequent amendments and enactments in the legislation. It will also shed light what is market manipulation, how it occurs, what drastic effects does it pose on the market, what are the techniques involved in it, how SEBI as a regulatory authority takes measures to curb these unethical practices. Similarly, the phenomenon of Insider trading is also discussed, how is it legally tacked, what all measures have been taken, SEBI’s role in its regulation to instill in investor’s confidence. Furthermore, it makes comparative analysis of regulations in foreign countries as well as providing with analysis of scams and landmark cases. The study is descriptive in nature and the primary data is sourced from various available research papers.
Sahu et al. (Tue,) studied this question.