It is a significant topic for the NISM Depository Operations exam. The Securities and Exchange Board of India was established as a statutory body in the year 1992 and the provisions of the Securities and Exchange Board of India Act, 1992 (15 of 1992) came into force on January 30, 1992.

1. Acts of SEBI
The Regulatory Environment of Indian Stock Market

2. SCRA-Securities Contract act, 1956
The SCRA-1956, provides for direct and indirect control of virtually all aspects of securities
trading and the running of stocks exchanges and aims at preventing undesirable transactions in
securities market.
• Stock exchanges and transactions through a process of recognition and under the continuous
supervision.
• Contracts & Controls in securities among the all participants(Client, Broker, Depository System, Issuer
& Exchanges).
• Listing of securities on BSE/NSE, [Equity, Commodity , Forex] Stock exchange or All kind of Indian
Stock Exchange(Kolkata,Delhi,Madras).
• The Stock Exchanges determine their own listing rules & Regulations, which have to conform by the
Securities Contract rules.
• Some Rules and amendment have been updated in the realization of SC_Rules,1957 Amendment of
act, 1956.

3. SEBI- Securities & Exchange Board of India act, 1992
• Protecting the interest of Investors in Indian securities market.
• Promoting the development of Securities Market.
• Regulating the all Indian Securities market and their operations.
• SEBI act created a good control over the traders, Intermediaries and Participants.
• It can conduct enquiries, audits and inspection for all Concerns and against offences under
the act.
• SEBI has got full Autonomy and authority to regulated, edit or develop an orderly and
smooth functional Securities Market.

4. The Depository Act, 1996
• An act to provide for regulation of depositories in securities and for matters connected therewith or
incidental thereto.
• According to the Sub section (1A) section 12 of SEBI act2, “DEPOSITORY” means a company
formed and registered under the Companies act, 1956 and which has been granted a certificate of
registration by 12(1A) SEBI act 1992.
• It has an agreement with all depository services as NSDL/CDSL body. These are Master depository
Participants.

5. Certain Provisions of the Company act, 2013
• The Company act deals with issue, allotment and transfer of securities and various aspects
relating to company management.
• The act describes for standard disclosures in public issue of capital, particularly in the fields
of company management, projections and information about other listed companies.
• It also regulates underwriting, the use of premium and dividends, discounts on issues, rights
& bonus issues, payment of interest and dividends, supply of annual report and other
information.
• The Company act,2013 also provide actions on insolvency and NCLT/NCLAT provisions.