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VOL. 11, ISSUE 12 (2025)
The changing face of stock exchange regulation in India: Integrating SEBI and SCRA in the digital era
Authors
Amuthavel Rajan A, Renganathan V, Krishnamoorthi S
Abstract
The two interlinked legislative pillars on which the regulation of
India's securities market rests are the Securities Contracts (Regulation) Act,
1956 (SCRA), and the Securities and Exchange Board of India Act, 1992 (SEBI
Act). Together, these instruments have crystallized into a single coherent
architecture for market governance in which the need for the protection of
investors is tempered with the imperatives of transparency and competition. The
SCRA lays down the statutory framework for recognizing and regulating stock
exchanges, while the SEBI Act institutionalizes a tripartite regulatory model
that fuses quasi-legislative, quasi-executive, and quasi-judicial powers. This
integration has converted India's post-liberalization financial landscape from
one marked by opaqueness and fragmentation to a technologically sophisticated
rule-based regime. Through doctrinal analysis supported by leading judicial
precedents-the cases of BSE Ltd. v. SEBI (2011), N. Narayanaswamy v. SEBI
(2013), SEBI v. Rakhi Trading Pvt. Ltd. (2018), and MCX Stock Exchange Ltd. v.
SEBI (2022)-the paper examines how the SCRA and SEBI collectively foster the
cause of market integrity and competition. It further analyses contemporary
challenges thrown up by algorithmic trading, artificial intelligence, and
cross-border capital flows, and suggests policy reforms in the form of
integrated digital oversight, coordination between SEBI and CCI, and adoption
of fintech sandboxes. The study concludes that although the SEBI-SCRA framework
has matured into a comprehensive system of governance, its continued legitimacy
depends upon agility, transparency, and judicial accountability.
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Pages:186-189
How to cite this article:
Amuthavel Rajan A, Renganathan V, Krishnamoorthi S "The changing face of stock exchange regulation in India: Integrating SEBI and SCRA in the digital era". International Journal of Law, Vol 11, Issue 12, 2025, Pages 186-189
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