REGULATING AUTHORITY OF PRIMARY AND SECONDARY MARKETS
SEBI
Securities and Exchange Board of India = SEBI
It regulates both the primary and secondary markets.
It protects the interests of the investors in securities.
It promotes the development of the security market.
WHY SEBI CAME INTO EXISTENCE
Because of loopholes present in primary and secondary markets
The entrepreneurs who wants to start the business introduces ipo( initial public offering i.e., share introduced for the money to invest) has no right to fix the price due to CCI code. People who get share for cheap price will sell it for higher price in the secondary markets.
Secondary markets are stock markets, as it is highly concentrated in mumbai and non brokers are not allowed, the competetion was very low.
SEBI came and started regulating the primary and secondary markets increased the transparency and accountability
