Explain the Regulatory Framework of Secondary Market in India.

Trading in the Indian stock market majorly takes place in the two stock exchanges, namely BSE Limited (formerly Bombay Stock Exchange) and NSE (National Stock Exchange of India). The regulation of buying, selling and dealing in securities such as shares of company, units of mutual funds, Derivatives etc and stock exchange, commodity derivative exchanges and depositories comes within the purview of Securities and Exchange Board of India (SEBI) in terms of SEBI Act, 1992 and various SEBI Regulations/ Circulars/ Guidelines/ Directives etc. SEBI was established on April 12, 1988 as non-statutory body and later on in 1992 was recognized as statutory body in accordance with the provisions of the SEBI Act. The mandate of SEBI is to protect the interest of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto. At present, the four main legislations governing "the securities market" are; The SEBI Act, 1992, which empowers SEBI with statutory powers for: Protecting the interest of investors in securities, Promoting development of the securities market, and Regulating the securities market. The Companies Act, 2013 which provides regulation for issuance, allotment and transfer of securities, and related matters in public issues of securities. The Securities Contracts (Regulation) Act, 1956, which provides for recognition and regulation of transactions in securities in Stock Exchange. The Depositories Act, 1996, which provides for electronic maintenance and transfer of ownership of dematerialized (demat) shares.