The absence of conditions of perfect competition in the securities market makes the role of the Regulator extremely important. The regulator ensures that the market participants behave in a desired manner so that securities market continues to be a major source of finance for corporate and government and the interest of investors are protected.

The responsibility for regulating the securities market is shared by
1. Department of Economic Affairs (DEA),
2. Department of Company Affairs (DCA),
3. Reserve Bank of India (RBI) and
4. Securities and Exchange Board of India (SEBI).

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