Domestic institutions (LIC – Life Insurance Corp. of India for example)
Asset Management companies (AMCs) who invest in the stock market through their mutual fund principals (example – Blackrock, Fidelity investments etc.)
Foreign Institutional Investors (FIIs)
Anyway, coming back to the point of Stock Market Regulators in India – well it is SEBI (Securities and Exchange Board of India). They have to look at some of the toughest responsibilities to make sure that there is nothing fancy happening in the stock market.
However, their major role is to safeguard the smaller fish from the sharks of the Industry.
That, in other words, implies to make sure that the bigger corporates and money houses do not play around for their profits, thereby ruining potentially profitable opportunities for smaller companies or retail traders/investors.
Some of the other top duties of SEBI include:
Setting up rules and regulations for different stakeholders in the stock market including stock brokers, stock market participants (retail traders, investors, institutional investors), banks, Depositories participants etc.
Performing background checks and issuing licenses to stockbrokers and financial houses
Auditing these financial brokers and houses on a regular basis to make sure that the facts and numbers being reported are factually correct
Fixing and Punishing culprits who perform irregularities in the system, play unfair and harm the overall stock market eco-system
It takes quite a toll to keep all the regularities in place and even if one specific entity gets involved in anything illegal, it not only brings loss to other participants but hits the reputation of the stock market as a whole.
Well, these are some of the responsibilities only and there a lot more that SEBI performs around the sphere to make sure that the stock market stays as a level playing field for any type of participant.
Once you have made your mind to invest in the Stock market, know about Sectors in Stock Market, and invest accordingly.
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