During early 90’s, there were vulnerable scams in the Indian stock market. The controlling system was emerged to control the stock market scams.
Hence, the SEBI (stock exchange Board of India) was established in
the year 1992 as the regulatory body of the Indian capital market. SEBI has
statutory status and governing body of Indian stock exchanges. It has entrusted
powers of provisions under the Companies Act, 1956 and Securities Contract
Regulation Act, 1956. The financial intermediaries who want to deal as stock
brokers, share transfer agents, banker to an issue, trustees of trust deed, registrars
to an issue, merchant bankers, underwriters, portfolio managers, investment
advisers in the securities market must register with SEBI.