Question

Name of the body which regulates the stock Exchanges in India is

• A. CBI
• B. CID
• C. SHCIL
• D. SEBI

Answer 1

The Correct Option is D

Step 1 — Recall what the question asks:
We are asked to name the body which regulates the stock exchanges in India. Stock exchanges are platforms where shares, bonds, and other securities are traded between buyers and sellers. These need strict regulation to ensure transparency, protect investors, and maintain fair practices.

Step 2 — Identify the regulatory authority:
The body that regulates the stock markets in India is the Securities and Exchange Board of India (SEBI).
It was established in 1988 and given statutory powers through the SEBI Act, 1992.

Step 3 — Functions of SEBI:
SEBI works as the watchdog of the securities market with the following roles:
• Regulates the working of stock exchanges like NSE and BSE.
• Protects the interests of investors in securities.
• Ensures fair trading practices and prevents malpractices like insider trading.
• Oversees brokers, mutual funds, and other intermediaries.
• Promotes development and modernization of the stock market.

Step 4 — Why not other institutions?
• RBI regulates banking and monetary policy, not stock markets.
• IRDAI regulates the insurance sector.
• Ministry of Finance makes policies but does not directly regulate stock exchanges.
Hence, only SEBI is the correct regulator of stock exchanges.

Final Answer:
The correct option is (D): SEBI.