Who regulates the stock market

Every stock market in the world is controlled by a regulatory body

Regulator in stock market in an independent body which has certain rules and regulations

These rules and regulations has to be followed by stock exchanges

Listing of a company,settlement process etc all happens as per the framework designed by the regulatory body.

Example of a regulatory body in United States-U.S. Securities And Exchange Commission

Purpose of a regulatory body in stock market or money market

  • Prevents fraudulent listings of companies
  • Penalize fraudulent activities
  • Creates a fair stock market atmosphere
  • Protects investors
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